Posted by Molly Nelson - While perhaps somewhat anecdotal,
this Wall Street Journal article points to an interesting trend of small businesses banding together to help each other survive the economic downturn. While some partnerships seem to be between diverse businesses, the article also cites former competitors finding success after working together,
"For other business owners, collaborating is more a matter of playing to their strengths. After witnessing a 50% drop in January sales this year, Erin Smith, the founder of the Stitch Smith, a custom embroidery and screen print apparel company in Greenwood, Ind., teamed-up with Susan McCarty, the founder of Franklin Printing, a nearby print shop with troubles of its own. Their plan included co-branding their companies and combining their manpower. Both firms continue to keep separate books. However, Susan now supplies the operational muscle behind both businesses while Erin hunts down sales. Together, the two owners were able to hire back a worker who had been laid off, and they're on pace to increase their combined annual revenues by 15%, Smith says."
The article also points to the
results of the National Small Business Association's 2009 Mid-Year Economic Report, in which 27 percent of respondents indicated plans to implement strategic alliances when asked about intended future growth strategies for the next 12 months.
Have you found success in teaming up with another business? Tell us about it in the comments.