Starting, Running and Owning a Business

Partnership marketing is a great way to link two aligned businesses and leverage the combined reputational benefits of both brands. It often works best when there is a partnership between a not-for-profit organisation (NFP) and a commercial entity, although it can also work well between two commercial enterprises.

As a small business, entering into a partnership marketing arrangement, especially one that is associated with an NFP, can really improve your reputation in the community.

Rhonda Galbally is the CEO of Our Community, which is part of a consortium of organisations that oversee the Australian Institute of Corporate Responsibility, which provides cutting-edge corporate responsibility resources for small, medium and large business and community organisations. The crux of the organisation is a series of partnerships between a commercial enterprise and a NFP. 

What are the major benefits of partnership marketing?

According  to Galbally “for community organisations, benefits include expansion of their knowledge base, better relationships with and understanding of business and of course better access to some of the skills and goods they need to carry out their work.”

“Partnerships are also extremely beneficial for businesses, providing a visible demonstration of their commitment to the community, which in turn can enhance their standing in the community and offer access to greater markets. Of course, it’s in the interests of every single business in Australia to play a part in creating a thriving, inclusive community – what’s good for the community is inevitably good for business,” says Galbally.

 
“Businesses that get involved with partnerships can also learn more about the community in which they operate, which is also good for business. Plus they can gain access to some of the skills and knowledge that community groups inevitably bring to the table in a partnership situation,” she says.

Any drawbacks to partnership marketing?

According to Galbally, “partnerships can create a draw on your resources – whether you’re a business or community group – so you need to go into the relationship with open eyes and make an honest assessment of the time and money that will be required to achieve results.” This is especially important for small businesses that don’t necessarily have the tiem and resources of large business.

“The main cause of partnership deficiencies are when one or both parties have neglected to think through their expectations for the partnership before signing on, or have not allocated the time and skill – and commitment – necessary to see it through,” she says.

How can two parties ensure the partnership is successful?

“The main thing to remember is that it is a partnership – not a dictatorship – and definitely not a charitable relationship. Both parties must bring something to the table, and both parties must stand to gain from the relationship if it is to work,” Galbally says.

“Both sides need to be clear, open and honest from the outset about what they can bring to the partnership. It’s also usually a good idea to start small – putting in place just one or two aspects of the partnership while you get to know each other – before expanding out.”

“Keep the communication channels open and keep reviewing the partnership at regular intervals to ensure you’re still on track. Also keep in mind that partnerships work best when the two parties have plenty in common – either through location, philosophy, aims or outlook – so do your research before you jump in,” she says.

Case study - Blackwood Centre for Adolescent Development and the Centre for Executive Development

The Blackwood Centre for Adolescent Development is an early intervention setting for young people at risk. The Centre for Executive Development (CED) is an Australian based international consultancy to public and private sector groups in the areas of organisational and human resource development.

Blackwood was the initiative of David and Julie Hayes, who began with an abandoned primary school site with no water tank, books, tables and a $30,000 grant. It has a reputation for integrity, meaning, purpose and positive outcomes.

Before entering into the partnership, CED had a clear understanding of the difficulties and challenges of establishing something new within strict funding limitations. As the partnership developed, it became obvious that the challenges faced by Blackwood and its hard working staff were no different to those facing many of the organisations with which CED was associated.

CED was focused on what Blackwood’s greatest need was and initially this entailed impacting on the level of intervention Blackwood could provide. Once the program was polished and tight, CED started to work on the physical resources on the Blackwood site.

The first stage in developing the partnership involved CED gaining an understanding of what Blackwood did, who they did it for, and what outcomes they were pursuing. Once that understanding was clear, it became easier to see how CED could use its facilitation expertise and corporate connections so that the Blackwood staff could concentrate on doing what they were good at.

The first project involved the establishment of an outdoor education program that has now become an integral part of the Blackwood experience. Next, several leadership groups were introduced to the Blackwood Centre and raised funds that were used to purchase a range of educational and operational equipment for Blackwood.

The beauty of this case study is that has resulted in a positive community outcome, with a great marketing result for CED. Had CED spent the funds it used to enter into a relationship with Blackwood on traditional marketing techniques, the results of the campaign would not have been as beneficial to the community and potentially would not have resulted in the same reputational improvements to the CED business.

By entering into a community marketing partnership, CED was able to contribute to a good cause, and at the same time enhance its standing in the community, a win-win for both sides.