Assess your options for business growth

As well as growing your business organically, you can also scale by partnering with others through joint ventures, mergers and acquisitions. These options provide resources and market access but require careful partner selection to avoid management issues.

Benefits of business cooperation

Successful business cooperation can deliver:

• more resources
• sharing of the managerial load
• larger skills and talent base
• bigger pool of contacts
• increase in markets
• diversification and organic growth using increased resources
• reduced commercial risk

For best partnerships, choose partners that complement your brand and goals.

Partnerships and joint ventures

Joint ventures and partnerships can offer both partners significant benefits, including sharing experience, skills, people, equipment and customer bases. Through a partnership or a joint venture arrangement with a complementary, non-competitive business, you may be able to enter new markets or improve your offering in existing ones. But it's important to choose your partner carefully.

An agreement or contract defining the terms of the partnership or joint venture is essential and further legal protection is advisable. See how to create a joint venture agreement.

Teaming up should be a win-win situation for both parties. Businesses involved with complementary activities or skills are usually the most appropriate candidates. For example, a group of sole traders - a carpenter, builder and gas installer/electrician - could form a company to:

• increase their credibility in the construction trade
• allow them to bid for larger contracts
• appeal to customers looking for a 'one-stop-shop' service

Find out more about joint ventures and business partnerships.

Mergers and acquisitions

Growth through acquisition or merger is a common tactic used to achieve diversification and market positioning. It can help:

• increase market share
• expand the workforce
• widen the existing service or product offering
• grow revenues
• achieve economies of scale
• reduce costs through shared budgets and greater purchasing power

However, combining two businesses can pose challenges that did not exist before, such as:

• maintaining a presence in multiple markets
• managing a complex product and services portfolio
• retaining a larger and more diverse customer base
• managing more people and operational complexity

Acquisitions and mergers may not be suitable for all businesses. They best suit well-established companies due to the considerable legal work involved. Find out more about mergers and acquisitions.

Research your options thoroughly and, if partnerships are not suitable for your business, consider organic growth or other business growth strategies.