Why Local Business Collaboration Is Beneficial To SMEs

It’s no surprise that there is a lot of competition amongst local SMEs. However instead of being competitive with one another what if you collaborated? SMEs that compliment each other can actually bring mutual benefit through marketing and business leads. But how exactly do you benefit from local business collaboration?

What local businesses should you collaborate with?

The first rule here is that you want to work with businesses that compliment your service or product in some sort of way. For instance, if you run a wedding photography business, you probably want to collaborate with some local wedding venues like a hotel. By doing this you and your chosen local partner can offer customers a package deal. This can be more convenient for the customer as they’re getting the full end-to-end solution all in one place. However if your service or product is more niche and it’s harder to find complementary businesses, you can always try to find one that could provide an “add-on” service or product. For example, if you sell web hosting, you may want to think about collaborating with a web design and development business.

How should you collaborate?

A while ago we spoke about collaborating with local influencers through online and offline marketing. The methods for how to collaborate with influencers is very similar to how you would work with other local businesses. However always ensure that when working with other SME’s your services complement one another and don’t compete. As we’ve explained above try and create an end-to-end solution for your customers together, or partner with a few “add-on” services. Don’t just lump your services or products together though. Make sure that they are linked together in a carefully researched and well thought out way to benefit the customer. After all collaborations that bring no value to the end user are fruitless.

How does local business collaboration benefit your marketing?

When you collaborate with other SMEs it not only give them access to your loyal customers, it also gives you access to theirs. Expanding your business’ reach gives you the opportunity to engage with an audience you may not have touched base with before. This racks up your marketing circulation but also gives you some valuable insight into how this new audience works. By carefully studying how this new pool of potential customers react to your business can help you adapt it to appeal to more people. Applying this new found knowledge to future campaigns can help you reach even more people in more relevant ways – creating more successful marketing campaigns.

How does local business collaboration bring in more business?

This one is a bit more obvious when you think about the answer to the previous question. A larger reach statistically increases the amount of business leads you could receive. Additionally after you’ve acquired a substantial amount of research on those that are in your now larger reach, you will be able to cater campaigns to their requirements. Like we said before, this will enable you to make more successful marketing campaigns which will eventually bring in new business.

So that’s why as an SME you should collaborate with other local businesses. Of course, remember that these are just general tips and that how you should use marketing strategies is very dependent on what industry you are in as well as your target audience.

As always, if you need any further assistance with any of your marketing projects then please don’t hesitate to contact us either here or on LinkedIn or Twitter. Until then, happy marketing!