A Guide to Corporate Partnerships
We’ve covered the importance of goodwill in terms of small business strategies before. As we near the end of another pandemic year, goodwill remains top of mind for businesses—especially in the form of corporate partnerships. Corporations are partnering with nonprofits to move their business goals forward, but this is also great for small businesses seeking to increase access to funding, resources, and talent.
The definition of a corporate partnership from Lawpath is “a mutually beneficial relationship between a for-profit company and a not-for-profit organization.” Typically, organizations with a common mission or business goal will partner together—working in tandem to promote social change, for instance.
Successful corporate partnerships have a few things in common. First, they’re mutually beneficial—meaning there’s an advantage for both parties involved. Second, the partnership represents each company’s values. And finally, a great partnership has exceptional communication around expectations. Both the corporation and the small business should be transparent about their goals of the agreement.
While nonprofit organizations can benefit greatly by the funds a larger company can provide through these partnerships, there are a slew of great benefits for the corporations as well. For instance, companies that work alongside nonprofits have higher employee retention numbers simply because it’s important for workers to feel pride in their organization. These workers can also be afforded the opportunity to volunteer with these nonprofits, which is ideal for professional development. Partnerships are additionally a great way to create a positive public image for companies.
While you’re searching for a corporate partner, it’s okay to be choosy – after all, it’s your business on the line here. You’ll need to first figure out what you’re looking for in a partner by defining and outlining your expectations of the relationship. Once that’s nailed down, you can work on researching the best partners that meet your qualifications. It’s important to set time up with these contenders to learn if you’d both benefit from partnering. Get all your questions answered, leave no stone unturned. If you end up finding the perfect match, you’ll definitely want to draw up a formal agreement with them that outlines whatever investment type (financial, resources, etc.) you’ve settled on.
What are your business goals, and is there a corporation out there that shares these same goals you’d like to partner with? If done right, corporate partnerships can lead to great things for both parties involved. Taking the time to explore these opportunities can mean increased revenue and heightened visibility—which are both critical to making your business as successful as possible. For more great resources and coverage on all things small business, stop by The Financial Pantry to explore what’s in store. And remember that the experts at ARF Financial are on standby if the time comes for a small business loan or line of credit. We’ve got the pros to help you build the perfect loan product—and we can prove it!