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Power of partnerships: harnessing the strengths of other businesses to grow

Partnerships deepen ties between businesses and foster collaborations and longevity



Power of Partnerships: Harnessing the Strength of Other Businesses to grow
Power of Partnerships: Harnessing the Strength of Other Businesses to grow. Photo source: Shutterstock

No business knows it all, just as one tree doesn’t make a forest, so it is important for businesses to come together in partnership so they can both gain. It is the most strategic way for businesses to scale their innovation and solve complex challenges. Collaborations and strategic partnerships – the keyword being strategic – are fundamental to improving business outcomes. 

Partnerships are beneficial to every business. The management team and employees will benefit from partnerships because they have the opportunity to broaden market share, relevance and increase visibility. Customers are not left out as they benefit from the strengths and offerings that the formation of partnerships produce. Employees equally get a chance to enhance their skills and have access to more developmental opportunities by being exposed to new perspectives. 

Why establish business partnerships?

Partnerships deepen ties between businesses and foster collaborations and longevity. In all, partnerships are key to improving service to customers by merging talent, expertise, technology and purpose.

Partnerships deepen ties and help businesses improve service offerings
Partnerships deepen ties and help businesses improve service offerings. Photo credit: Shutterstock

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How do you know when to form partnerships and how to create valuable partnerships? You need to identify the specific challenge that needs to be fixed. Businesses need to know what their customers want and then identify who to form an alliance with in order to provide an enhanced service.

How to establish partnerships

However, you need to be certain that your company is strong enough to form partnerships. One of the key ways of harnessing the strengths of other businesses is to lay out what each is bringing to the table and what each business is lacking either operational or otherwise and look for ways to collaborate on their individual strengths in order to grow.

Businesses looking to form partnerships must agree to work together towards a common goal. Establishing a clear goal of what the partnership aims to accomplish is key to the success of the partnership and the growth of the individual businesses involved. A good example is a partnership between Piggyvest and Landwey to facilitate ease of accessibility to land ownership for middle and low-income earners.

Meetings are important when deciding to foster a partnership
Meetings are important when deciding to foster a partnership with another organisation. Photo credit: Shutterstock

Another good example is Prospa’s partnership with Workstation. The workstation has a digital member network of distinctive people and companies to which they send helpful information – newsletters, events and press releases. Prospa has partnered with them on a few events and workshops to leverage their network of entrepreneurs in order to establish its digital banking accounts for businesses. 

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Recently, Flutterwave partnered with Worldpay; the collaboration between the two companies will allow Worldpay merchants in Europe and the United States to accept any African payment. These are examples of strategic partnership where each of the company leveraged on the strength and market share of the other to grow. 

Effective communication is another way to build a concrete partnership. Clear communication between partners must be established. Having a series of meetings to elaborate on partnership collaboration is key so as to understand the needs of both parties and what they hope to accomplish. Open and effective channels of communication will go a long way in establishing a successful partnership and subsequent business growth.

Partnerships are also a  way for businesses to gain access to untapped market segments and resources as well as create supply chain resilience. Strategic partnerships with reputable brands can put businesses in target communities where they were struggling to enter before.

Business News

Nigerian Stock Exchange Starts Week With 0.04% Loss



Nigerian Stock Exchange to complete public listing

The domestic equities market on Monday extended its losing streak with the All-Share Index dropping by 0.04 per cent, as the country officially entered recession.

Specifically, the All-Share Index lost 15.04 points or 0.04 per cent to close at 34,121.78 compared with 34,136.82 achieved on Friday.

The index was dragged by profit-taking on major financial services, among which are Zenith Bank, Lafarge Africa, Stanbic and Guaranty Trust Bank.

Consequently, month-to-date and year-to-date gains moderated to 11.8 per cent and 27.1 per cent, respectively.

Similarly, the market capitalisation dipped N7 billion or 0.04 per cent to close at N17.830 trillion from N17.837 trillion posted on Friday.

Market breath closed negative with five gainers in contrast with 46 losers.

Custodian Investment, Ardova, Honeywell Flour Mill, Lafarge Africa, Livestock Feeds and Transcorp led the losers’ chart in percentage terms, losing 10 per cent each to close at N5.85, N13.50, N1.08, N22.05, N1.26 and 90k per share, respectively.

Oando followed with 9.97 per cent to close at N2.89, while Neimeth International shed by 9.96 per cent to close at N2.17 per share.

Conversely, Airtel Africa dominated the gainers’ chart in percentage terms with five per cent to close at N525 per share.

BUA Cement trailed with 4.77 per cent to close at N56, while Dangote Cement rose by 3.42 per cent to close at N199.80 per share.

Nestle Nigeria chalked up 1.82 per cent to close at N1,400, while NEM Insurance appreciated by 0.78 per cent to close at N2.60 per share.

Meanwhile, the total volume of shares traded increased by 64.69 per cent to 568.04 million shares worth N7.33 billion in 8,928 deals.

This was in contrast with 344.90 million shares valued at N4.22 billion exchanged in 6,565 deals achieved on Friday.

Transactions in the shares of Zenith Bank topped the activity chart with 79.741 million shares valued at N1.913 billion.

FBN Holdings followed with 72.75 million shares worth N499.58 million, while Access Bank traded 65.74 million shares valued at N520.34 million.

United Bank for Africa traded 46.97 million shares valued at N360.04 million, while Guaranty Trust Bank transacted 37.09 million shares worth N1.27 billion.

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Business News

Nigeria Enters Yet Another Recession



Nigeria has entered its worse recession in a decade; this follows the announcement by the Nigeria Bureau of Statistics over the weekend. The CEO, TrustBanc Asset Management Limited, Oluwaseun Adesoye explains the developments.

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Business News

Business edge // Africa Continental Free Trade Area Agreement (AFCFTA)



On Business Edge, Tolulope Adeleru-Balogun and Nasir Afolabi Agbalaya discussed the Africa Continental Free Trade Area Agreement (AfCFTA) which is about to take off in the first quarter of 2021. Many African nations are boosting infrastructures and making other arrangements for their implementation.

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