Wednesday, 12 September 2012

The Hidden Advantages of Collaboration Tools For Business

The Hidden Advantages of Collaboration Tools For Business

By Scott L. Buendia

There are many known reasons to collaborate with another business. These reasons include increased revenue, reducing the amount of money allocated to a new venture (shared costs), and reducing the amount of work place on a business's work force (sharing the load of work). However, there are several hidden advantages that make it worthwhile to team up with businesses that are like minded but not in direct competition with another business.

1. Optimizing the system for maximum effectiveness - borrowing ways of doing things from the other business - These businesses should not be working in same industry but have complementary products and services

Innovation usually does not come from within a certain industry. This is because most people in the industry think the same way. They are not prone to thinking outside of the box. Therefore, the thought processes within a whole industry can become very stagnant. What becomes important at this point is infusing the business with new ideas. Collaborating with another company can do just that. This company would, ideally, be in a different industry but like minded. A company that is non competing but like-minded probably has products and services that would be enhanced by the addition of products and services from the other company. This allows both parties to have a look at the processes that they both use. This is where innovation for the industry can happen. There are several marketing gurus who have used this thinking to bring totally fresh ideas into old industries. This one idea can bring thousands of dollars into a business that has been struggling to make more money.

2. Coming up with ideas from the other company - products and services

Alchemy is an important part of any business. This is why it is useful to have another companies input about a product or service. The other company has a history of developing their own products and services and that history is much different than the companies own experiences. This means that collaboration will allow both businesses to avoid pitfalls that they would not be able to avoid on their own. Having an extra set of eyes in product or service creation is always a good thing. There is no better way to have this then to have two businesses work together for a common goal.

3. An understanding how the other business works so that a business can serve their clients better

Lastly, a business different than the one that the business works in has insights into new markets. These new markets can have effects on the existing market. Therefore, borrowing customer service ideas from the business partner is a very smart thing to do. Retention rates of customers can be heightened from this practice and a business will produce a far greater amount of revenue from one client. It is widely known that it is far easier to keep a client than it is to generate a new client. A collaboration will strengthen the ability of both companies to keep their clients or customers for longer periods of time.

There are many advantages to working with another company. However, the best reasons may be the hidden ones as described in the paragraphs above. No business or person is an island and the addition of another set of eyes from another business can be very helpful. This business or business owner has a unique set of experiences and history that is different from the other business owner. The combined skills and experience of both business owners allows them to make more money than either could on their own. This is why a business should collaborate with another like minded but non-competing business.

Scott Buendia consults for All the views and tactics in this article are tactics and ideas of the author; they do not necessarily represent the ideals, beliefs, or trademarks of Visit his card on Bizbuilt here,

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