For years now, FITT has been taking to Twitter to engage in lively discussions with our global trade community every month. Always focused on practical advice and trade-related topics, these chats have been a goldmine of wisdom and a great opportunity to network with thought leaders. Thought leaders we like to call, the #TradeElite.
So, after a short hiatus in 2019, and by popular demand, the chats are back in 2020! In December, as part of our holiday #FITTmas celebrations, we asked what you wanted to talk about this year. Partnerships! Partnerships! Partnerships! was the answer. Do we need them? How do we find them? How do we know when a partnership is the right fit?
- When should a business consider making a strategic alliance in their target market?
- How can you assess a potential partnership?
- What are the benefits of a strategic alliance for a small business?
- Who can help you identify potential partners across borders?
- What are the red flags and risks of partnerships and how can they be mitigated?
We assembled a crack team of experts to answer these questions and more. Read on for their answers. Have more questions? Leave them in the comments below!
Moderator:
Marcela Mandeville, CITP (@MsBrightIdea) , CEO of @AWEbusiness (Alberta Women Entrepreneurs) based in Edmonton, AB
Panelists:
Audrey Ross, CITP (@TresAudrey) Logistics & Customs Specialist at Orchard International Inc., based in Toronto, ON
Sarah Barnes, CITP (@bevictoryus) Supply Chain Expert, Entrepreneur and Podcaster at @LetsTalkSChain, based in Mississauga, ON
Kseniya Stogniy, CITP (@Kstogs) Export Advisor at Export Development Canada, based in Ottawa, ON
When should a business consider making a strategic alliance in a target market?
A1 relationships are key in business today so including connections from your target market in your online community as soon as possible #TradeElite
— Sarah Barnes (@bevictoryus) February 20, 2020
A1. You may not know specifically what you need yet, so best to build a variety of relationships early so they are in place when you figure it out.
In gen every biz usually needs local legal, accounting, hr, translation, gov’t & marketing services #TradeElite— audrey ross citp|fibp (@tresAudrey) February 20, 2020
A1 when there is benefit to both sides and it aligns with your strategic long term goals. Otherwise the alliance won’t last. #tradeelite
— Ontario in Deutschland (@OntarioGermany) February 20, 2020
A1 #TradeElite There are no set rules when wanting to form a partnership. If you have an opportunity to explore working with another business, take it! If you’re new to your target market, you can leverage your partner’s knowledge, network & resources in that market! https://t.co/mUA9ZLR9gs
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
How can you assess a potential partnership?
A2 #TradeElite To build on my A1, it is all about commitment. If you have similar goals, similar values that is good. Has your partner set aside resources to make it work? Do you have a workplan? Do you have milestones?
— Ontario in Deutschland (@OntarioGermany) February 20, 2020
A2 – #Communication is key to assess who they are as people, as a company and if your #values align. It may take a few conversations and even an in person meeting but keeping your eyes wide open moving into a new partnership is critical to #success #TradeElite
— Sarah Barnes (@bevictoryus) February 20, 2020
A2 #TradeElite Assess it based on how it aligns to what you’re trying to achieve – is this the best fit for me? Will it bring me closer to where I want to be? Do your due dil. on their reliability & reputation – is this someone you want to be associated with?
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
A2. Referrals or word of mouth. Ideally this will be an intro through shared connection or they are so good at what they do, they are standing out.
Assessment is lining up your values & being clear on expectations, desired outcome & goals.— audrey ross citp|fibp (@tresAudrey) February 20, 2020
What are the benefits of a strategic alliance for a small business?
A3 #tradeelite Local knowledge is one benefit; don’t reinvent the wheel if there is a partner who can help you. Plus they are present there every day.
Complementarity is another. If you do X and they do Y, you can do Y for them in your market and they can do X in theirs. Win-Win— Ontario in Deutschland (@OntarioGermany) February 20, 2020
A3. Sharing.
They
can do some of the costlier (either $ or time) items that are local market specific.
be an extension of your resources.
ensure last mile / tailored customer service
may have access to more customers
help avoid local risk
#TradeElite— audrey ross citp|fibp (@tresAudrey) February 20, 2020
A3 #TradeElite There are many – increased competitive advantage by leveraging each other’s expertise, access to new technologies or filling gaps in skill sets that your company may have, risk sharing, leveraging their network… the list goes on and on.. https://t.co/VIqCTURCmt
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
A3 As I always say “Collaboration is the future of business” so there are so many benefits from shared growth – networks, revenue, online community – a true partnership will always look at ways where it is a win/win scenario for everyone #TradeElite
— Sarah Barnes (@bevictoryus) February 20, 2020
Any suggestions on how a business could research reliability and reputation?
#TradeElite – word of mouth, talking to other companies who also have partnerships with the came company, credit checks! Also check out @ExportDevCanada‘s Company InSight tool – it can help you find reliable & trustworthy info about foreign companies. https://t.co/G9DatP5uf1
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
Who can help you identify potential partners across borders?
A4
This may tie in! Through the EDC (@ExportDevCanada) Business Connection Program, Canadian companies are introduced to leading global companies interested in working with Canadian expertise and innovation.https://t.co/o92ZTHEgmd #TradeElite #CDNbiz #Export
— Barry Y (@yrraByrraB) February 20, 2020
A4 #TradeElite Leverage industry associations! They often have access to lists of companies through their members directory who can become your potential partners in market. Check out tradeshows. And work with the @TCS_SDC https://t.co/yZXPTVYQVI
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
A4. Start with your home gov’t resources & then check other countries embassies. They have consular services along with Trade services.
Hubs are going to be in city capitals but a lot are accessible online (like twitter).#TradeElite— audrey ross citp|fibp (@tresAudrey) February 20, 2020
A4. The #TradeElite on twitter.
Honestly, I’ve asked for help with UK warehouses, importing cosmetics to South Korea, where do I find this tariff schedule, why is getting a POD so hard and my twitter connections have never failed to deliver.
Huge resource.— audrey ross citp|fibp (@tresAudrey) February 20, 2020
What are the red flags and risks of partnerships and how can they be mitigated?
A5 #TradeElite Along with the benefits, come the challenges… Choosing the wrong partner can negatively impact your reputation. Partners can bump heads on ideas & you could lose some control of decision making. Also, when making an agreement make sure you #GetItInWriting https://t.co/cLH6ilwa0Z
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
A5 read the fine print, I think the risks are almost the same with any partnership, globally tho be careful of the jurisdiction of any agreement. If there is an argument you may be flying across the globe to go to court, each time $$ #TradeElite
— Sarah Barnes (@bevictoryus) February 20, 2020
And above all else protect your IP!!! #tradeelite
— Ontario in Deutschland (@OntarioGermany) February 20, 2020
A5 #TradeElite Again, #DueDiligence is key!
— Kseniya Stogniy, CITP® (@KStogs) February 20, 2020
A5. if things go badly – they can go very badly.
The key is to hash out your break up at the beginning. Of course you will be together forevah… but for fun, work out who gets what & who pays what into your agreement UP FRONT. ESPECIALLY JURISDICTION. #TradeElite— audrey ross citp|fibp (@tresAudrey) February 20, 2020
Read the rest of the chat and join future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up Thursday, March 12 at 2:00-3:00PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.
Great content! Super high-quality! Keep it up! 🙂