Competitive spirit

March 22nd 2008

I’ve been talking to people a lot lately about the importance of forming solid strategic partnerships with other small business owners. Connecting with other entrepreneurs — even those that may not ever become clients — is an extremely valuable use of time and will pay off in the long run.

Personally though, I think one of the most frequently overlooked places to find valuable connections and partnerships is with your competition. I know this may sound like heresy to many out there, but in my experience it’s true… Your competitors can actually HELP you grow your business.

My company specializes in graphic design, web design and marketing for small to medium-sized businesses. There are hundreds of qualified firms and individuals competing with us just here in Atlanta and, I would guess, tens of thousands nationwide if not more. But at the end of the day, no two design firms are exactly alike. Some firms are big and some are small. Some do a little bit of everything, but some firms specialize in a specific media like print, magazines or web. Some firms work exclusively on specific types of clients, like technology firms or consumer products companies.

Many times, we’ll get referrals from other firms for projects that aren’t right… Projects that are too small for our agency contacts and projects that are too big for freelancers we know. Sometimes other designers will even start projects for us to finish. Why not? Building a good relationship with people within your own industry is a great way to earn a top-notch reputation. And this strategy isn’t limited to design and marketing… I have seen people in a variety of industries work effectively with competitive firms or individuals. Business consultants do this all the time as do lawyers, accountants and IT firms.

Certainly you need to be careful about how you work in relationships like this… You obviously don’t want to expose too much of your organization or give someone information that they could easily exploit to your disadvantage. But at the same time, you have a lot to gain by developing close relationship with other professionals in your industry — even if their services overlap with yours.

Posted by E. Wolf