Have you ever heard the saying, “when one door closes, another one opens?” Well, it is very true in today’s world of business. John Willding, a mergers and acquisitions attorney from Dallas, Texas, explains why networking with other companies in your industry does wonders for business.
When networking with large businesses, there are many benefits you take advantage of, including potential joint ventures and access to new markets. Networking with your industry also helps with professional development and acquisition opportunities.
Leverage Advantage
When two businesses come together, there is always an opportunity to create a synergy between the two companies. Each company achieves things by working together that are unattainable by working independently. John Willding believes that this increases market share to new customers and even cost savings.
Extended Reach
John Willding believes that by networking with other businesses, your company gets better brand identity and makes more connections with potential customers.
Opportunities for Growth
Joining forces with a larger industry partner also provides opportunities for growth that are unavailable if working independently. Larger businesses often have the resources and contacts to provide employees with training and development opportunities. John Willding feels that these partnerships generate referrals and assist clients as they grow and expand their needs.
Revenue Growth and Profitability
John Willding believes the simplest reasons for networking with other businesses are that you grow your revenue and become more profitable. When two companies work together, they form strategic alliances, which help them grow faster than either could separately. There are many forms of business collaboration, including:
- joint ventures;
- strategic partnerships;
- sponsorships; and
- mergers and acquisitions.
These collaborative options provide numerous avenues to create value by eliminating market risk, sharing technology costs, and lowering transaction costs between partners. Other benefits include technological synergies through shared R&D efforts, access to new markets, and even cost savings.
Getting Ahead
Developing a strategic partnership with larger businesses provides opportunities for growth that are possibly unavailable under your current business model. Larger businesses often have the resources and contacts to provide employees with training and development opportunities. They also have greater access to capital, including debt capital that allows bidding on larger projects.
New Innovations
A large benefit of networking with large businesses is access to innovations. Contacting other businesses gives you a first-hand look at the latest and greatest technologies, products, and services. You also get exposure to different ways of doing things, which jump-starts your creativity and helps your business grow.
There are many reasons for small businesses to network with larger businesses. By taking advantage of the opportunities available, small businesses establish themselves as major players in their industry, and they continue growing strong. When it comes to making money, expanding reach, gaining growth opportunities, and accessing innovations, there is no better way to do all than by networking with others.
Business Visibility
Networking with other businesses is one of the most effective ways to improve your business visibility. By being associated with well-known and respected businesses, you increase the trust and credibility of your company. When potential customers see that you have partnerships with reputable businesses, they more likely do business with you.
Small businesses need to remember that networking is a two-way street. Just as you benefit from networking with large businesses, they also benefit from networking with you. Both parties achieve great things and continue growing strong by working together.
Networking with other businesses is one of the smartest things for a small business to do. By partnering with larger businesses, you access many opportunities to help your business grow and succeed.
Business Synergy
When two businesses collaborate, they form a business synergy. This is a situation where the whole is greater than the sum of its parts. The two businesses achieve things by working together that are unachievable by working independently. For example, a small business gets access to a new market that a larger business does not, and vice versa.
Workplace Reinvention
One of the most effective ways to keep your employees motivated is by reinventing the work environment. In some cases, employees find it difficult to concentrate on their tasks because their current workplace does not support productivity. Luckily, networking with other businesses helps you change this.
Final Thoughts
Large businesses often have more resources to change a workplace. For example, they have access to new technologies and tools that help streamline operations and make processes easier. If you pair these opportunities with collaboration efforts, small businesses embrace new technology while working with others simultaneously.
Networking with large businesses allows smaller companies to gain numerous benefits, including reduced risk through shared market information, lowered costs due to bulk purchasing and marketing, and easier access to new markets.
