Why Partners and Cost Structure are key building blocks for businesses
- Business Rescue Business Growth
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At Be Rescued we love giving small business advice and top tips. So, over the past year we’ve taken you on a whistle-stop-tour of the Business Model Canvas with a deep dive into some of the key things you need to consider as a business owner. This crucial document helps to ensure your business can function effectively and turn a profit. We’ve reached the final stage of the Business Model Canvas, and in many ways, saved the best till last with step 8 ‘Partners’ and step 9 ‘Cost Structure’. At Be Rescued, we see both as essential building blocks for businesses, here’s why and what you should consider.
Small business advice: Why Partners are essential building blocks
No man - or woman - is an island. The same is true for businesses.
Every business has external partners that are an essential part of their operation. Your business might have Key Partners who are manufacturers, suppliers or other companies.
Partnerships are formed for many different reasons and can have a profoundly positive effect on all parties helping to grow businesses.
What to consider when collaborating with Partners
1. Plan for success
At Be Rescued, when giving advice for small businesses, we repeat one thing Plan, Plan, Plan. The same is true for forging partnerships.
Right now a lot of savvy businesses are looking to form partnerships to help them build back after the challenges brought about by the pandemic.
Strategic relationships with other businesses can help fulfil some of the key elements in your Business Model, making it work efficiently. Effective partnerships can also boost business growth.
But successful partnerships don’t just happen. You need to do the groundwork and plan for success.
Whether you need help with planning for a business partnership or general advice on business plans, Maria at Be Rescued can help. Contact Maria.
2. Manage your partners
First you need to decide how any partners, which are in essence third parties, will fit into your Business Model Canvas.
Managing partnerships can be tricky but the key is to set clear parameters from the get-go. All parties involved need to work together to lay the foundations and in particular manage expectations.
It takes two to tango and with partnerships you need to ensure that the relationship is mutually beneficial. There should be added value for each business when you connect your two separate business models.
Whatever the nature of your partnership, it really helps if you can make any partners feel involved in your business.
Keep communication channels open. Give your partners regular updates about how the partnership is working from your side and encourage them to do the same.
3. Do the paperwork
Make sure you get the paperwork in order! As well as documenting any partners in your Business Model Canvas you need to ensure you draw up a partnership agreement to avoid any confusion or potential issues further down the line.
Collaborating with partners can be hugely beneficial for businesses. If you need any help with managing partnerships including drawing up agreements, small business advisor Maria Pombo can help. Contact Maria for a chat about how she can help your business thrive.
How to attract the right partner
We’re not talking about dating here but rather things you can do to make your business more appealing to other businesses and attract the right partner.
The first step is to identify what kind of partner would benefit your business.
What type of businesses could you work with to the mutual benefit of both parties?
The most successful partnerships work for everyone involved.
Identify potential areas of collaboration and be clear about the benefits any potential business partner would get from collaborating with you. Once you have identified the right partner, all that is need left to do is to start a good positive dialogue!
Sometimes it helps to get small business advice from an outside expert, you might be too close to your business to work out the best route to take to secure the right partner.
Maria at Be Rescued can work with you to source and build an effective partnership for your business. Book an appointment with Maria today!
Small business advice: Why understanding your Cost Structure is key to business growth
Your Business Model Canvas really comes into its own when looking at Cost Structure.
It’s crucial that you understand your costs as this will ensure that your Business Model works and keep your venture up and running.
Getting a full handle on your Cost Structure will mean you fully understand the finances involved in your business. Only then can you put your business on the path for growth.
If you need any help with navigating Cost Structure get in touch with Maria at Be Rescued, who can demystify the entire process for you.
What to consider when looking at your Cost Structure
Look back over your Business Model Canvas and factor in all the costs and expenses that are involved to make it operational. Include all your fixed and variable costs.
In your Cost Structure you need to break down what it costs to develop your services or manufacture your products.
Also build in costs for operations management, employees, sales and marketing, and customer support.
Don’t forget to include costs associated with sourcing and developing partnerships.
Getting your Cost Structure right will help the whole Business Model Canvas succeed and pay dividends for your business. So, you see, we really did save the best till last!
Key takeaways
Partners can help your business grow but it’s essential that you find the right partner and work to develop a mutually beneficial partnership. Do the groundwork to manage expectations and avoid any potential problems.
Understanding your Cost Structure is crucial for the success of your Business Model and will pave the way for business growth.
Whether you need help with your Business Model Canvas or general small business advice, Maria at Be Rescued can help. Book an appointment with Maria today!