Turn Your Competitors Into Allies

Forming competitive alliances with other businesses like yours in your local area can give you the combined spending power you need to market jointly. By joining forces, you can fund larger multimedia campaigns either to change opinions close to home, or win business from outside the area by marketing regionally or nationally.

Win More Referrals

Friends send you business; enemies don't. No matter what kind of company you own, chances are it differs in many ways from even its closest competitors. Some clients or customers will be right for you and others will find a better fit by choosing to buy from or work with someone else.

Get to know your competitors through networking at business or association events and earn their trust and mutual respect. You can formalize your referral relationships by offering referral fees in industries where it's appropriate to do so, or simply keep your arrangements informal and professional.

Offer a Joint Product or Service

Are you struggling to win contracts from large corporate clients, but losing out because you lack a big-company image or the right expertise? Consider forming a marketing partnership with a competitor to pitch and win larger contracts by working together to provide a product or service.

In a competitive bid situation, marketing to a mid-level manager in a major corporation can be tough for a small-business owner. Put yourself in the prospect's position; she must make "safe" decisions in order to protect her job. So even when a small and relatively unknown company appears to provide the best solutions, a corporate manager may shy away from it and make a safer choice by going with a larger or better-known company. If you face this challenge, forming an alliance with the right competitor can allow your small business to come on strong and market itself as a safe, more powerful solution.