Call 020 7794 5757 - Email info@numerallp.com

Building strategic alliances

How collaboration can benefit your business.

At Numera we can provide businesses in the London area with help and advice on a wide range of business issues. Here are some tips on building strategic alliances...

Going for growth means learning to spot emerging opportunities and taking advantage of them quickly - before your competitors move in.

But expansion requires people, skills, experience, equipment, plant, technology, and above all capital. Gathering all these quickly to take advantage of a fleeting opportunity is often beyond the scope of smaller businesses. By the time they have mustered the necessary resources the opportunity has passed, or a competitor with more clout has beaten them to market.

Sometimes the solution is to seek a strategic alliance or joint venture with another business with which you have appropriate synergy.

The first actions are to determine:

  1. What the goals and objectives of the venture are
  2. What resources are needed to accomplish them
  3. Which of these resources you can provide
  4. What resources you are looking for a partner to provide

Once you are able to profile the prospective partner, look for candidates among your customers or clients, among your suppliers, and in industry association sources. You can also ask your banker, legal adviser, and of course us to make suggestions.

Draw up a short-list and then research each candidate carefully. Besides checking what resources they can bring into the partnership, look also at such things as their ethics, values, and expectations to see if there is compatibility in these areas.

Check their accounts, history, and reputation. Ask their customers, suppliers, etc what it is like doing business with them.

Once you have found a suitable partner and agreed heads of terms, draw up an agreement that clearly specifies:

  • The goals and objectives of the venture
  • The time period within which they are to be accomplished
  • The criteria for measuring success or failure
  • What resources each party will put into the venture
  • How profits or losses will be shared

Be sure to protect your interests by agreeing rules for such things as sharing data, poaching staff, disclosing financial information, and protecting assets such as intellectual property.

Above all else, be clear about your exit strategy before you begin.

If you are in the London area and are looking for help and support from experienced accountants and business advisers, contact Numera.

Newsletter sign-up

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign-up today

Try a site search Tax return, dividends, pension, autumn statement...

Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

© 2022 Numera. All rights reserved. We use cookies on this website, you can find more information about cookies here.