As an entrepreneur, launching a new product or service can be one of the most challenging experiences you’ll ever face. More than likely, you’ll become familiar with long hours and late nights. Sometimes entrepreneurs find that launching a product or service can be easier when done with an established partner.

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.