Stop Selling and Instead Partner with Small Businesses
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- October 18th, 2007
Are you finding it a challenge to reach niche markets? Too costly to go after on your own?
Has innovation inside your organization stalled or become stale?
Perhaps it’s time to do what companies like Google and Proctor & Gamble are doing: partner. A growing trend is that of large companies partnering with small businesses to their mutual benefit in the marketplace.
Partnering between large and small businesses is occurring more frequently. — Large companies such as Google are now partnering with small and mid-size firms, whereas a year or two ago, they were partnering strictly with larger firms. By partnering with smaller niche players, Google can now provide technology and services to these niche markets, with the small business partner receiving a percentage of the profits from those sales. These new partnerships differ from the traditional relationship dynamics between large and small businesses, which were either competitors or vendor/purchaser.
Steve also points out the example of Proctor & Gamble, which used to do all of its product development and innovation internally. Now as much as half comes from partnering, especially with smaller firms. One example he gave is the Swiffer cleaning product — it is licensed from a smaller firm, not developed internally.
Steve gives an insightful look at the development of the ecosystem between large and small businesses: What Small Business Owners Want.