• Home
  • Blog & News
  • Why Collaboration is a Critical Skill for Every Business Owner
Why Collaboration is a Critical Skill for Every Business Owner

Why Collaboration is a Critical Skill for Every Business Owner

We’ve entered the age of collaboration. Despite current events, like BREXIT, that showcase the opposite, collaboration remains an important tool for business success. Getting it right is critical. Effective collaboration can accelerate your business growth and building an Asset of Value. On The Money Show with Bruce Whitfield, Pavlo Phitidis set down a plan for business owners to develop effective collaboration skills and strategies:

Why collaborate?

Your need to collaborate will be borne from one of two factors: necessity or opportunity.

The most successful businesses I work with specialising and excelling in a niche. We identify what is core and strategic and everything else is outsourced. In new industry value chains, outsourced means collaboration if your supply and demand dependent on partners.

Assessing a collaborative opportunity

Six considerations when building a collaboration framework include:

  • Your business strategy: Be very clear on your business strategy, your customers’ needs, and what you want your strategic competence as a business to be.
  • The value chain: Assess the entire value chain for your customers. It’s impossible to fulfil every role in that value chain through your own business. For example, a mattress manufacturer does not run its own advertising agency for marketing its services, nor does it house a dedicated textile factory to produce fabric. Knowing your business’ role in that value chain, and working with others that fulfil different, but complementary, roles is important.
  • Competition: Complementary roles are essential, because competing with your collaborator will kill the collaboration and you will be robbed of your Intellectual Property and team.
  • Matching values: Find a collaborator whose values and operational approach matches that of your business. Thoroughly research your potential collaborator, to better understand how they work at every level.
  • Distribution and growth: Understand how this collaboration will grow or limit your business. SnapScan provides a superb example of this: by partnering with just one bank, the mobile payment platform limited its market share potential, which was quickly snapped up by competitor, Zapper.
  • Finance: Be very clear on how money will flow into your collaboration, and how it will be distributed to each side.

Designing a successful collaboration

Design and implement a successful collaboration by:

  • Identifying the end point: Define the objectives you aim to achieve through this collaboration.
  • Identifying the levers of success and failure: Define your roles, responsibilities, and expectations of each other.
  • Starting small: Find the smallest, low-risk project you can work on together, and use it as a test for your larger collaborative project. Build on that, and scale slowly, taking on more risk as you build. This will help you learn more about how your collaborator works, because truth is found in action.
  • Assigning a budget: Know and understand the budget and financial flows that go into your potential collaboration, before you begin working together.
  • Creating a watertight agreement: This eliminates miscommunication and make things very clear to everyone involved. This must include:
    • Clear definitions of each party’s roles and responsibilities, including an icing clause, that prevents either of you from entering into overlapping or competitive activities.
    • A full financial breakdown, including all expected income, expenditure, payment, and delivery dates.
    • A termination clause, that outlines how to end the collaboration when either of you need to, or the project reaches the end of its cycle.

Spotting potential problems in your collaboration

Do not feel pressured to begin work before the agreement is signed. A true collaborator will insist upon a signed agreement before committing resources and time to a project. Make sure you have thoroughly researched your collaborator, and thereby protect your intellectual property, customers, and operational strategies. Don’t get sucked in by big promises or idealistic objectives. If you’re concerned about your objectivity in assessing a potential collaboration, ask for advice from someone who is experienced in the industry, sector, or type of collaboration you’re pursuing.

Getting into an agreement is easy. Getting out, when it’s not working burns brand, reputation and opportunities.

Do you need to collaborate to grow your market share, or pursue new opportunities? We can help. At Aurik, we design and implement strategies that help you build your business into an Asset of Value.

Tags: The Money Show, Building your Business

Position your business for success and maximum impact
Positioning your Business Business Growth

Position your business for success and maximum impact

Wing Chun Kung Fu, a style of martial arts, requires that you have a secure footing on the ground in all its defensive and...

Read more

Building a business is like sailing a ship
Asset of Value Building your Business

Building a business is like sailing a ship

Analogies are very useful to simplify thinking and action. As a #businessowner, building a #business in a challenging environment...

Read more

What’s your business worth?
Business Growth

What’s your business worth?

Firstly, this only matters for 5.4% of all #businessowners since 94.6% of all business started fail to sell. They close at...

Read more

Creating wealth through your business
Business Growth Wealth Creation

Creating wealth through your business

Wealth describes an abundance of a desirable thing. It could be friendship, love, money, access to a foodstuff and so on....

Read more

Developing an effective marketing strategy
Business Growth Marketing strategy

Developing an effective marketing strategy

If you can’t and don’t get potential customers to know that you exist, they don’t care and you die. They don’t care because...

Read more

Build resilience into your business to take control of your future
Business Growth Strategic Planning

Build resilience into your business to take control of your future

We often hear about being resilient to thrive and survive in business today. Why does this matter and what does it mean?

Read more

Escaping the project revenue trap and why you should do it
Building your Business

Escaping the project revenue trap and why you should do it

Recently, at an Asset of Value event in Johannesburg, South Africa, a room bristling with 58 business owners that collectively...

Read more

What is your business building approach to 2019: Chose one of 3 strategies
The Money Show Business Strategy

What is your business building approach to 2019: Chose one of 3 strategies

2018 has been an exhausting year. Taking time off is important, so long as you don’t break the momentum of your business....

Read more

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures
The Money Show

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

Collaboration is a key element for building your business into a successful Asset of Value. But, not every joint venture...

Read more

Why Collaboration is a Critical Skill for Every Business Owner
The Money Show Building your Business

Why Collaboration is a Critical Skill for Every Business Owner

We’ve entered the age of collaboration. Despite current events, like BREXIT, that showcase the opposite, collaboration remains...

Read more

Foresight and action can turn the potential sales you book in 2018 a certainty in 2019
The Money Show Sales

Foresight and action can turn the potential sales you book in 2018 a certainty in 2019

You’re winding down towards the end of 2018, and preparing to lock and load the early sales for 2019. If you’re not in this...

Read more

Turn 2018’s Exhaustion into 2019’s Business Acceleration
The Money Show Business Growth

Turn 2018’s Exhaustion into 2019’s Business Acceleration

Year-end fatigue is setting in - 2018 has been a tough year emotionally, economically, and physically. But that’s not much...

Read more

Building a Branch Network for Your Business
The Money Show Asset of Value Business Growth

Building a Branch Network for Your Business

Building a branch network for your business is still relevant and appropriate, despite the exponential growth opportunities...

Read more

Growing Revenues through Indirect Sales Channels
The Money Show Business Growth Sales channels

Growing Revenues through Indirect Sales Channels

Effectively growing your business revenue needs a lot more than just a regular sales effort. Developing and implementing...

Read more

Entering, Surviving, and Thriving, in a New Industry Created by New Technologies
The Money Show Business Growth Strategic Planning

Entering, Surviving, and Thriving, in a New Industry Created by New Technologies

We’re in the midst of the 4th industrial revolution, with many new technologies quickly entering the business environment....

Read more

Business Funding: How to Self-Fund your Business through its Lifecycle
The Money Show Business funding

Business Funding: How to Self-Fund your Business through its Lifecycle

Business owners and entrepreneurs often express the difficulty of accessing business funding as a key challenge. And yet,...

Read more

Building a business with confidence amidst uncertainty
The Money Show Business Growth Business owner

Building a business with confidence amidst uncertainty

A constantly changing business environment demands that business owners develop new skills to ensure business growth. Recently,...

Read more

Choose your Business Growth Rate and Build your Business Towards It
The Money Show Business Growth

Choose your Business Growth Rate and Build your Business Towards It

We may be living in a negative economic cycle right now, but it’s up to you to decide what your business growth rate should...

Read more

How to Build your Business & Capitalise on a Seemingly Negative Business Environment
The Money Show Building your Business

How to Build your Business & Capitalise on a Seemingly Negative Business Environment

The reality of a recession is sinking in, and it seems the echo chamber of negativity is overwhelming. South Africa’s business...

Read more

How to build a resilient business in a technical recession
Building your Business

How to build a resilient business in a technical recession

Our economy is in the midst of a technical recession and business owners are wondering how to weather this economic storm....

Read more

Marketing for Business Growth: Keeping your Customer Acquisition Cost in check
The Money Show Business Growth

Marketing for Business Growth: Keeping your Customer Acquisition Cost in check

You’re not alone. It’s becoming more and more difficult to generate leads, turn those into customers, and grow your revenue....

Read more

Product businesses in the industrial sector need to build differently to survive and thrive
Building your Business Business Growth

Product businesses in the industrial sector need to build differently to survive and thrive

Keeping water flowing through the kilometres of underground pipes keeps all players in water infrastructure awake at night,...

Read more

How to Build Your Business by recruiting the Right People to do the Right Thing at the Right Time.
The Money Show Building your Business

How to Build Your Business by recruiting the Right People to do the Right Thing at the Right Time.

As a small business owner, your biggest investment will be your staff. How you hire, who you hire, and when you hire, will...

Read more

Turning the talk of your Business Strategy into the Walk of Execution and Results
The Money Show Business Strategy

Turning the talk of your Business Strategy into the Walk of Execution and Results

In recent meetings with frustrated business owners, Pavlo Phitidis picked up on a significant trend – a high level of complaints...

Read more