I realized that we could multiply our company's revenue with a strategic partnership with another, much larger business in a bordering industry. However, I'm not sure how to approach this.
The company we're looking to partner with offers a different service to what we have, so they're not a direct competitor. However, their customers are EXACTLY the ones who would use our service as well.
For example, a company that sells expensive rugs partners with a specialized cleaning company to provide ongoing rug cleaning & provide the best service for the client.
Through the partnership, the rug company might earn a 25% commission on the cleaning contracts & the cleaning company benefits from the business the rug company brings them.
This is not our industry, just an example.
Now back to our business: In the best-case scenario, we could build an easy integration with their e-commerce site & clients that request our service would be able to place their order within their system.
Here's my concern: If the partnership goes well, what if they take the service we offer in-house & compete with us on a national level as a competitor (maximize their profits)? Right now, they're doing around 30m in revenue from their service & if they took the service we offer in-house, that would add about 2-4m (with our partnership, they would make 500k-1m approx).
How would you approach this? Is this a valid concern given the above? Would you try to create a partnership anyway?
The company we're looking to partner with offers a different service to what we have, so they're not a direct competitor. However, their customers are EXACTLY the ones who would use our service as well.
For example, a company that sells expensive rugs partners with a specialized cleaning company to provide ongoing rug cleaning & provide the best service for the client.
Through the partnership, the rug company might earn a 25% commission on the cleaning contracts & the cleaning company benefits from the business the rug company brings them.
This is not our industry, just an example.
Now back to our business: In the best-case scenario, we could build an easy integration with their e-commerce site & clients that request our service would be able to place their order within their system.
Here's my concern: If the partnership goes well, what if they take the service we offer in-house & compete with us on a national level as a competitor (maximize their profits)? Right now, they're doing around 30m in revenue from their service & if they took the service we offer in-house, that would add about 2-4m (with our partnership, they would make 500k-1m approx).
How would you approach this? Is this a valid concern given the above? Would you try to create a partnership anyway?
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