Many people underestimate the power of networking and collaboration. Many more are under the false impression that only competition is healthy for business. In the right hands, both networking and collaboration can lead almost anyone on the path of success. Small companies and startups, in particular, have a lot to gain by employing them.

Any business owner, big or small, can reap the benefits by collaborating with others and by working together for a common goal. Only the naive and inexperienced will try venturing on their own when it is well-known that two or more minds are better than one.

There are numerous benefits to be gained for companies looking to work with others for their mutual benefit. Below are some of them.

The Networking Circle

Any business, regardless of industry or size, will stand to gain from a network of referrals and connections. One hand washes the other, or so the saying goes, and collaborative businesses take this saying to heart. My accounting firm will recommend your design business to potential clients, and you return the favour, in turn. It’s that simple!

You can check out your local chamber of commerce for such a related group to join, or you can forge an informal alliance, yourself. Whatever the choice, keep in mind that what you give out, you will also get back in return. The more businesses in your networking circle, the more referrals you get.

Co-Promotion and Synergy

Complimentary businesses are often the best allies. Synergy arises when two or more independent entities join forces to generate more than what they ever could separately. A certified public accountant, for instance, can collaborate with other service providers and offer their combined pool of customers a mix of their expertise such as tax planning, financial advising, insurance, web management, design, etc.

Think of this strategy as fishing. You can go at it alone, using a rod to catch one fish at a time. Or you could be working together with others by using a net and snag more fish than any of you individually could.

Cost-Effectiveness

Synergy not only multiplies the benefits but also reduces singular costs. Instead of paying for separate marketing campaigns, collaborative businesses can create a sole one, useful for all of them. Cost-wise, the benefits don’t stop there. Intellectual contribution, development, and hands-on work can also be shared between them, improving everyone’s effectiveness, in the process.

Learning and Problem-Solving

When business collaboration is involved, it’s not just the businesses, themselves, that learn and grow. When people with different backgrounds and experiences come together, they learn from each other’s mistakes and successes. Collaboration has a knack for opening up new horizons, allowing people to think more outside the box and better detect opportunities as they arise.

As far as problem-solving is concerned, two heads are better than one. When facing a difficult problem, it’s always better to turn to someone else for help. It may not be in the form of material resources, but a piece of good advice or a useful referral may come in handy.

The point is that networking and collaboration are powerful tools to use, primarily as a startup. The synergy generated by them will benefit you in ways you may not yet realize. For any of your accounting needs, TD Accounting is at your service. Contact us for more information.

Until the next time,