Welcome Guest

Home Article Growing Your Business Growth Strategies  Business Growth without Funding

Business Growth without Funding

No funds for further investment? Still your business can grow. Explore and find out the alternative.

Tags: Business Growth without Funding

BY Entrepreneur  |  Mar 22, 2010 comments ( 2 ) |

One of the most powerful ways to facilitate business growth is through the application of strategic alliances. These alliances or virtual funding as they are sometimes called, turn out to be extremely beneficial like the infusion of cash into your business, for both short and long period of time. By using strategic alliances, you can avoid borrowing, or bringing outside investors into your business.


Two important strategic alliances are marketing alliances and product alliances. Under a marketing alliance, you and another business exchange customer bases. This allows you to gain access to another business's customers, to whom you can market your products or services. Additionally, you may also earn a royalty or share revenue from the other business' (your alliance partner's) sale of its products or services to your customers.


With a product alliance, you are able to offer other party’s products/services to your existing customers, while your alliance partner sells your products or services to its customers. Under this type of alliance, you are able to sell products and services without any additional requirements, such as manufacturing know-how and capabilities, product distribution networks, or increased investment in inventory and storage. All you have to do is divide the sales revenue between your alliance partner and yourself.


The ideal businesses to form an alliance are those that offer products and services that are complementary to your products/services. For example, if your business offers sporting equipment, you could create an alliance with a sports clothing retailer as a way of offering its sports apparel to your business's customers, while the retailer sells your sporting equipment to its customers.


Before you enter into an alliance with another business, you must complete due diligence research and analysis to determine the trustworthiness, capabilities and reputation of any potential alliance partner. Referrals from a business's customers and/or suppliers are good sources of information, along with any credit information, you get an access to. If the potential alliance partner has any existing successful alliances with other businesses, the feedback would be very useful to you in making your decision about this potential alliance partner. Mr. Tejpavan Gandhok, CEO, Lite Bite Foods Pvt. Ltd says, “In order to be successful, an alliance must benefit all members sufficiently to both entice them as well as maintain a strong level of interest and working cooperation throughout the entire term of the alliance.”


Finally, before you make a strategic alliance a permanent agreement, you should test your alliance concept with each potential alliance partner. Once you have the results of your tests, you can refine the terms and conditions of the alliance and then finalise all legal documents and operating agreements.

Please add your comment

Hushan Kumar Bisen

April 28, 2010 at 10:22 pm

Very good concept for the new business enterprenurer.

Reply |

meghna laad

April 04, 2010 at 11:42 pm

read this article ....

Reply |

Not readable? Change text. Enter the characters as seen on the image (case insensitive)
  Notify me of follow up comments via e-mail   Subscribe for daily newsletter

Related Articles

Tiding over off season

BY Entrepreneur

Almost every business gets affected by seasonal changes to some extent, though the degree varies from business to business. Whereas one season turn...

Working with freelancers

BY Entrepreneur

  Has your business grown bigger? Do you need more hands to work for you? How about working with freelancers?   A freelancer is a person ...

Do you network?

BY Entrepreneur

Anthony J D’Angelo once said, “In life, it is not what you know or who you know that counts, it is both.” So true! It is not just...

Do not clip your company to yourself

BY Entrepreneur

As an entrepreneur you must have put all your effort, mind and time in your business. While establishing your business, it’s obvious that you...

Time for a Year End Review

BY Entrepreneur

The year 2009 that has gone by has been very tough for businesses. It has been a bumpy ride throughout with a comparatively smooth close as the cur...

Salability of Your Business

BY Entrepreneur

The post-economic downturn period has turned out to be mayhem for business owners who are hoping to sell their business. With closed deals at a record...

Business Exit Strategy

BY Entrepreneur

If, one day, you plan to exit your business and transform your equity into cash you will need to prepare for that along the way. You'll need to build ...

Controlling Your Business Burn Rate

BY Entrepreneur

Do you suffer from the running-out-of-cash syndrome before you reach those milestones and find yourself burnt out of business? Don’t worry! The ...

Network wherever and whenever possible!

BY Entrepreneur

You already know, how important networking is for your business. It might not help you in making direct money but can help you in being informed on va...

Act pricey!

BY Entrepreneur

Do you want to add new clients to your list? Are you becoming desperate for it? That might be your biggest mistake.   When your bank accounts s...

Make life simpler

BY Entrepreneur

Entrepreneurship is demanding. The everyday hassles can occupy your time to an extent that you are left with little or no time to strategize for the g...

Managing Projects

BY Entrepreneur

If you are an entrepreneur, you've probably got outstanding ideas and projects in abundance, and even more popping up everyday! Do you face the...