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Sharing the Cost

When it comes to competition in the business world, the largest brands are almost always compared with others similar to them, as well as the medium and small ones; in other words: they are categorized according to their reach or size. But should that always be the focus? Should we settle to limit our growth? At Detour Maps we believe otherwise.

Depending on the nature of the business, some micro-enterprises, SMEs, or startups may find themselves competing with big brands. How? By implementing similar strategies, creating alliances with other entrepreneurs, or sharing the cost of advertising.

These last two forms are the ones that we consider more robust to obtain different results. That is why we want to motivate you to think big and follow these tips to share the cost with other companies that, like you, want to grow even more.

What types of alliances can you make with other local entrepreneurs?

As the saying goes: union is strength. Sharing costs with other entrepreneurs can generate an impact almost as great as large companies. However, before moving on to the alliances you can get, you should first locate companies that have something in common with you.

Yes, although it seems pretty obvious, you must find allies according to two variables: the place or the niche where you operate. In other words, you can join entrepreneurs who work in the same geographical area and whose focus is the community or with those who have complementary products/services.

Why should you make this approach? To assess how wide the network can be. Once you get that, you can follow these strategies and decide how to apply them.

Alliance for Local Events

This is not something new, but it has been left aside due to technological connections and social networks. Remember that people connect with people.

You can organize activities linked to important dates for the place where you are or according to the neighbors’ needs, for example: food fairs, university job fairs, fundraisers for foundations, special discounts, etc.

*This alliance can be for a certain time, seasonal or permanent, depending on the capital you have to invest or the purpose of the activity.

Outsourcing Alliance

Outsourcing is just subcontracting processes in your company. How does this relate to an alliance? Easy! Take advantage of local talent and hire them to do some work for you. They will surely have good ideas since they are also part of the community.

Supplier Alliance

Very similar to the previous one, if you have a business that requires materials or ingredients from a supplier, consider acquiring them from entrepreneurs in the area, and thus you will be motivating the local economy.

Shared Advertising

Another option that will benefit you is Shared Advertising, which consists of sharing advertising costs with other brands. This allows you to save money and boost your business through digital marketing, mailing campaigns, and social media advertising strategies. How to get it? Through community platforms like ours: Detour Maps.

Here we bring together entrepreneurs from various communities in Chicago, Illinois, to show their services on our page through the Orange Deals program, which contains offers, rewards, and gift cards that we design exclusively for them.

In this way, we allow them to have the tools to compete together against large corporations. If this is your case or you already have a group of allies, we can help you strengthen those ties and reach more audiences. Contact us to learn more!

Co-branding

Si encuentra aliados potenciales, puede crear un nuevo producto o servicio que los involucre a ambos y así obtener un beneficio mutuo.

These types of alliances can be seasonal or long-term, depending on the nature of what you are creating. For example, if you have a restaurant or a bakery, you can team up with a flower shop and make a special offer for birthdays, which includes a free dessert with flowers.

The possibilities are endless!

How do these alliances work to compete with large companies?

There are three key factors for any of these strategies to work: persistence, an ally as interested as you, and commitment.

  • Consistency will lead you to continue innovating, which is more attractive to the community since you can offer new things in less time than large companies.
  • On the other hand, find people that are really interested or invested in the project. If they have good energy, everything will come along.
  • And finally: commitment. This will be crucial to advance with quality and overcome any setback.

Remember that the purpose of these strategies is not only to sell; your goal is to show the community that you can give them what they need, as an individual company or as a team. This will generate even more confidence, and there will be a preference against national/international brands.

 

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