Use Strategic Partnerships to Build Your Business
Go from employee to owner by looking for ways to add value to other people and their businesses.
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There is an image of the lone-wolf founder that stands out when you hear the word, entrepreneur. They are the confident, outgoing, and a smart-as-a-whip person who can just, “figure it out.” They don’t need any help; they are independent!
Well, that’s not reality. The reality of entrepreneurship is that partnerships are key. And when you are getting up and running strategic partnerships are crucial. That doesn’t mean you need to fully rely on any one person or group. What it means is when you’re getting something off the ground, you need help.
Duh! You say, of course, I need help. I’m totally mental since I’m about to take a crazy risk. I’m an entrepreneur. But partnerships are of course risky and that’s something to consider.
A strategic partnership can focus on a lot of things, resource sharing, market expansion, product development, cost reduction, risk mitigation, or competitive advantage.
To us, strategic partnerships are ultimately about two people or entities going further together than they would apart.
When you’re sitting in a Starbucks thinking about what to do next, you should always be focused on “Who, Not How.”
This means who do you know who could help you further your professional goals, and more importantly, how could you help them?
Strategically go from employee to owner by constantly looking for ways to add value to other people and their businesses.
This might seem counterintuitive at first…”But wait, I need to make money! How can I feed myself and my family?”
This is why most people do not make the jump to being an entrepreneur. When you work for a salary you are not paid to look for new opportunities to help others. You are looking for ways to do your job more efficiently and effectively. You’re helping your boss.
When you’re on your own…Staring at the ceiling, wondering how you’re going to pay your mortgage or student debt, what do you do?
If you’re an extrovert, you might reach out to a friend to share what you’re up to.
That’s a start. Sharing what you are doing and what you want to do helps communicate your purpose and frame your value proposition. It also helps others see you as “X.”
“X” could be someone who is opening a bakery, or offering development management services, or building a new real estate brokerage firm.
Whatever “X” is, you have to plant the seed first in your friends' and network’s minds. Then, when something comes up, they think of you.
As an entrepreneur sharing your story is key, but so is listening closely to other people’s stories.
Why? Because you can only help others if you know what their pain points are.
And that is what I love most about business, it’s about helping others get what they want. As a wise man once said…
“You can have everything in life you want, if you will just help other people get what they want.” Zig Ziglar
So share and listen to your network and while you’re at it, look for those interested in partnering. Partnerships can be informal. For example, every time I hear about a deal in Person X’s wheelhouse, I’m going to share it with them.
That doesn’t have to be an agreed upon deal. It can be as simple as thinking of other people.
Here are some examples of strategic partnerships for real estate entrepreneurs:
Developer partners with a family office investor
Real estate investor partners with a commercial real estate broker
Developer partners with a construction company
RE-focused marketing company partners with developer
Real estate broker partners with a developer
Finding ways to create mutually beneficial relationships is something I really enjoy doing. I like connecting people which can result in getting into formal or informal deals.
Just remember, when you help people you act as their ally. And then they see you as their ally. This creates more allies for you over the long term.
In the end, the more allies you have in your space, the more opportunities you have, and ultimately your success will follow.
In summary, strategic partnerships can be:
Formal - Shake hands and maybe even write an agreement up that says, “We both agree to help each other and do X, Y, and Z”.
Informal - Looking to help others with their business in ways that they might not have thought of or to provide some resources in exchange for something that might benefit you and your business in the future.
It is not a complex formula…just help people and they will likely help you. The more you help without a clear ask from them, the more they will want to work with you.
That’s my two cents on strategic partnerships…I’m sure in our audience there are dealmakers and/or attorney’s that could add ideas and comments to this topic. We would love to hear them!
Reach out anytime as I’m interested in partnerships and guest posts. You can also schedule some time on my calendar here.
Cheers,
John
P.S. We released a new episode of Breaking New Ground this week! This weeks episode is a conversation with Nadine Ezzie a real estate entrepreneur, pro-tech advisor, and attorney. She shares her experience building her business. You don’t want to miss it! Here’s the link to check it out on Spotify!
What We Are Reading This Week:
WSJ - The DC Office Market is in Trouble - No Matter Who Wins the Election
Commercial Observer - Proptech in the Luxury Residential Market is All About Access
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