The power of partnerships?

One of the things about the current economical crisis poses the issue about how do businesses adjust to being in a tougher climate to firstly steady the ship and secondly put together a plan that sees them through the unsteady period?

I have quite a few friends that are builders (good if you want work done on your house, not so good at polite dinner parties for clean jokes!) and they are feeling the strain on the economy as much as anyone at the moment. I asked one of them how as a small two person company they would still be able to get enough work to pay them both a salary when so many other people are tightening their belts and putting off having work done?

'Simple', he said, we pool resources with other smaller firms and share work between us so that we all get some work to tide us over. That way we can still compete with some of the bigger firms that have the money to ride out the lean spells and we have a good network of people that we know we can trust'.

Now there is nothing revolutionary in what he was saying but out of necessity they have to work together with potential competitors just to survive, and may actively help someone today who will take their business next month, or next year, and they have to trust them. The human need to survive, even in business outweighs the need to make money, or greed. I like that.

So, what's the point I'm making? Do firms go for the knee jerk reaction and lay off staff (normally the most expensive aspect of a business) Do they cut operational costs? Do they downsize the business to a smaller location? Or do they even think about partnering with another company and looking to use that relationship to either offer more to their own customers, or offer their services to their new partners? Is that even considered?

Partnering with the right company can have pretty compelling results. If you don't do it would a competitor of yours? Would they then have that competitive advantage over you?

Cobweb uses it's own partnerships to great effect (I think!) As a smaller company (>150 employees) we have to ensure that we gain the maximum benefits for us customers. Partnering with someone for the sake of it is never going to work. Having some reciprical services and a cultural fit between the two businesses are fundamental to the success of the partnership. I'd be interested in other peoples feedback around this and if you think you can partner with Cobweb or even that we can partner with you then please do contact me.

I think the main point of what I've said above is that we'd be fools to discard the idea without proper consideration.

Mark