Have you ever bought or sold a share of stock? If so, then you understand that there is always a winner and a loser in the markets. Someone will make money by buying or selling shares and someone will lose money (or the potential to make more money). It’s always an inverse relationship.

This same relationship can occur in public relations.

A perfect example of this came across my desk over the weekend. As I was catching up on past articles in the Times (London), I read about an oil painting that was used for years as a dart board. It turns out that this was actually an Old Masters painting from the 17th century. As I read on, I learned that it had hung in a center for delinquent youths. When the building was sold in the 1980s, it was removed and put into storage.

At this point in the story, the loser became obvious…it was the local council that managed the center.

As the article continued, I learned that painting underwent restoration and was then put into storage until an art researcher found it and discovered that it was one of the most important works depicting the house that Rubens (a famous Flemish master) lived in. It is now considered the earliest depiction of that famous building and is going on display at the National Gallery.

Clearly, the researcher, Anne Cowe, and the National Gallery are the winners in this article. Without their intervention, this painting may have been neglected for another century. They are heroes in the eyes of the media, and more importantly, the readers.

So why do we care?

At some point in your career, your company will be on the losing side of PR. When, not if, this happens you will need to know how to respond accordingly. Sure, the local council neglected a painting…but what the article failed to mention was how many young people the center helped over the years.

I’ve put together a list of strategies below to help you manage and overcome negative publicity:

Be Transparent
Speak openly about any issues your company is facing. Being the first to the table to discuss any problems will help you maintain control of the story within the media.

When You’re Wrong, Just Apologize
When your company does something wrong, even when it’s unintentional (like the local council in this article) just apologize. This is one of the easiest ways to win back consumer trust and loyalty.

Take Immediate Action
When something goes wrong, take immediate action to fix it. Doing this will demonstrate to the media and to the public your commitment to actively take measures to correct a mistake.

Going back to the example in the Times article, one strategy that the local council could use to better its image, is to setup an outreach program that targets art history students and provides them with internship opportunities to research its collection of 5,000 paintings. This not only reaches young people, but it also shows that the local council is sincere about fixing this problem of neglect.

Most Importantly, Don’t Do Nothing

This may seem to be common sense, but you’d be surprised at how many companies fail to respond to negative publicity. By doing nothing, a company can only hope for the worst.

Why should you consider a strategic partnership?

• Use of existing infrastructure and distribution network
• Instant brand recognition
• Access to loyal customer base
• Future partnerships and funding opportunities
• Use of strategic partner’s resources in marketing, human resources, corporate management and brand strategy

Here are some examples of recent strategic partnerships:

iPod & Nike

What’s a better partnership than that of two of the most innovative consumer products companies, Apple and Nike? During the summer of 2006, both companies announced that they would join forces to launch the Nike+iPod Sports Kit, bringing together the worlds of sport and music. Each company offers a large customer base as well as brand loyalty. Creating this partnership allows customers the ability to purchase a sports package that includes the best music player combined with the best athletic shoes.

Isaac Mizrahi & Target

In 1998, luxury clothing designer Isaac Mizrahi closed his fashion house after Chanel pulled its financial backing. At the time, Mizrahi announced that he was transitioning into screenwriting. It wasn’t 5 years later that he created a strategic partnership with Target Corporation to launch the Isaac Mizrahi Collection of women’s sportswear and accessories. This exclusive partnership at Target gave Mizrahi the mass-distribution he needed to sell his product and it gave Target a luxury product to elevate its brand.

AuctionDrop & UPS Store

During the summer of 2004, eBay consignment company, AuctionDrop, announced that it was creating a strategic partnership with the UPS store to allow customers across the United States to submit their personal property for consignment. This partnership opened up 3,400 new storefronts for AuctionDrop, without the added time, money and energy that it would typically take to open a similar infrastructure. In return, AuctionDrop brought in more customers to the UPS store.

How do you develop a strategic partnership?

While there’s no simple answer, attracting a partner to help you launch your product or service becomes easier when you go after a company that fits with your brand. What do I mean? You’ll find it more successful to approach a company that targets a similar customer, sells other products in the same industry, or has a similar innovation and R&D strategy.

Here are 5 simple steps to help you begin the process of finding a strategic partner:

1. Write down all of the companies that would make a good fit with your product or service (this may take several pieces of paper)
2. Place a star next to all of the names of companies that reach your target customer
3. Circle any companies, from the ones you starred, in which you may have a contact. Although it easier if your contact works in corporate management, it’s still okay if this contact is an hourly employee. Any employee can start the process of pointing you to the decision maker.
4. Start using your contacts to call to set up appointments with the decision maker at those companies. FYI, for retailers, this is usually a specific buyer. 
5. Impress the decision maker by showing them your prototype, market research, exactly what problem your product or service is going to solve and why it’s beneficial to have you and your company as a partner.

Developing a strategic partnership is no easy task, but if you have an innovative product or service and can bring a unique opportunity to a potential partner, you’ll find success more easily attainable.

In the October 2007 issue of WIRED magazine, Breitling, the watchmaker, placed an advertisement for a special edition series of chronographs designed exclusively for Bentley Motors. The Company is calling the campaign, “Breitling for Bentley” and using the opportunity to compare its watches to the prestige of a Bentley automobile.

This is a great example of a company using the leverage of another company to increase its own brand recognition and brand value. While Breitling is already considered a luxury product, Bentley Motors is one of the top luxury brands in the world and this partnership will surely help build the Breitling brand.

This same type of creation can be true in public relations. An example of this would be Simons Jewelers and Lake Forest Confections. Simons Jewelers sells high-end jewelry and Lake Forest Confections sells gourmet chocolates. Individually, both businesses are well respected, but not unique in the eyes of the media. But when these companies came together and created Le Chocolat, a $1.5 million holiday gift, it sparked a media frenzy that resulted in features in Vogue, the Associated Press, and about three dozen other newspapers and magazines.

Another good example would be the partnership between Nutra Pharma Corporation and the World Aquarium. Nutra Pharma, a biotechnology company developing treatments to diseases using modified cobra venom was facing a dilemma. They were in the middle of trials and had no news to share with the media. During this time, they opted to create a partnership with the World Aquarium and sponsor its rare 2-headed snake to help build awareness about their trials as well as the importance of nature. The fit worked and they received spots on various radio and television stations and features in newspapers and magazines.

As you can clearly see from the above examples, combining two or more individual products, services or companies can be a very powerful source of creativity in public relations. The emergence from these partnerships can certainly help drive publicity that would otherwise be no existent.

The next time you are at a standstill with your product or service, give some thought to what you could pair it with to help drive media exposure. As always, feel free to post comments or email me if you have any questions or want feedback on your new PR ideas.

It’s not often that I have time to sit down and watch TV in the evenings, but when I do; my favorite show by far is The Big Idea with Donny Deutsch. Every weekday evening on CNBC, Donny interviews startup and small-medium sized business executives to find out what they did to be successful and discover the source of their creative genius. Go ahead and watch just one episode and I’m sure you’ll get some interesting ideas. For more information, visit http://www.cnbc.com/id/15838512/.

Loans: Borrowing money from the bank, your friends, or your family can be expensive, but you won’t have to dish out much, if any, equity. Because your new company will be lacking in credit, most banks will require you to provide some form of collateral, which could include your house.

Best for: Those who are concerned about giving up equity. 

Friends and Family: When raising money, always invite your closest friends and family to be the initial investors. Though this could be a burden if your company doesn’t see any success, your friends and family will ultimately give you more freedom than professional investors, such as venture capitalists or private equity investors.

Best for: Those who are bootstrapping their startup.

Angel Financing: Do you have an idea that requires a minimal amount of financing, but more than you can borrow from friends and family? With angel financing, companies can raise between $10,000 and $1,000,000 from strategic investors. Many times these investors will not only help you with your financing, but will also provide you with advice based on industry experience. To receive angel financing, you must complete your business plan and apply to angel investment networks. Many of these networks focus on certain industries, so best to research them before you blindly apply.

Best for: Those looking for money and limited help from investors.

Venture Capital: If you aren’t starting a technology, biotech, or life sciences related business, then don’t continue. Venture capital investors are interested in primarily aggressive growth businesses, such as the industries mentioned above. If you need a significant amount of money, then VC money would be ideal. Venture capitalists (sometimes referred to as vulture capitalists) will take a large portion of your business, but will provide you with enough financing to start and build your business. Expect to give up a board position, as the venture capital firm will delegate a representative (or two) to sit on your board and the firm will offer its human capital to help your company grow.

Best for: Those looking to raise over $1,000,000 in aggressive growth industries.

Private Equity: This strategy is really reserved for privately held companies that are already in revenue and needing additional capital for faster growth or acquisitions. Usually private equity investors are interested in companies that are seeking over $10 million in additional capital, but some boutique firms can help raise less. Most private equity firms won’t be helpful if you need less than $5 million. There are a number of prominent full and boutique firms in Manhattan, London, and Chicago. When deciding on which firm to approach, it’s best to research only those that invest in your industry.

Best for: Private companies seeking additional capital for aggressive growth or industry consolidation. 

Private Placements: This financing strategy only works for companies that are already public. Typically, the company issues additional stock (yes, this dilutes your current shareholders) and sells this stock for the market price or at a slight discount if the stock is restricted for a year.

Best for: Public companies looking to raise limited amounts of additional capital.

This past winter, both clients approached me for help. While Lake Forest Confections had the desire to increase its brand awareness, Simons Jewelers wanted to develop a highly trafficked e-commerce website. I knew instantly that there would be an opportunity to connect these two companies and create a unique synergy that would fulfill the needs of both clients.

The first step was to complete the e-commerce website for Simons Jewelers. Once the website was launched, I immediately setup a meeting between the companies. The outcome was the $1.5 million holiday gift, “Le Chocolat”. (Click here to view Le Chocolat) 

Le Chocolat featured a selection of Lake Forest Confections finest assortment of gourmet chocolates as well as an arrangement of magnificent jewelry from Simon’s personal jewelry and gemstone vault. The jewelry included priceless natural yellow and blue diamond, emerald, ruby, and sapphire earrings, bracelets and necklaces.

Our strategy was to increase online traffic for the newly launched SimonsJewelers.com by promoting Le Chocolat on its website and to build brand awareness for Lake Forest Confections through a traditional PR campaign. It worked.

Our story was immediately picked up by the Associated Press, which described Le Chocolat, included an interview with the owner of Lake Forest Confections, and listed SimonsJewelers.com as the place to order. Ultimately our story aired on over 34 different television stations, was included in over 10 different magazines and newspapers, including the Robb Report, and was discussed on over 15 different blogs and websites. In addition, our story was mentioned on a number of local and national radio shows.

Although Le Chocolat never sold, Lake Forest Confections did increase its brand awareness and Simons Jewelers received a significant number of visitors to its website.

If we had worked individually with both clients, this type of campaign would have not been possible; however, by creating a synergistic relationship between the two companies, we achieved success.