A VC in Vacationland

Many start ups think that "partnering with the Big Boys", whether large channel partners, consultants or complementary software providers, is a great way to make their business grow.  This is true for some, but not for all start ups.  Any such partnering requires significant effort and resources to generate sufficient leads to justify the investment. 

Here are a few success factors I have found useful in advising start ups hankering to get in bed with the Big Boys:

1.Choose carefully-partner only with successful players who have penetrated key buyers in your target verticals. Many start ups do not do sufficient research to uncover potential partners who both understand their technology but also have the access to the right people who are possible users of their technology.  If you have picked your Board carefully, you should have a few members who have industry contacts that can be helpful in this process.  In addition, do not hesitate to tap your network for ideas and suggestions.

2.Resource the effort–put a top person with experience in making partnering happen in charge. Former managers with IT consultancies make a good choice here as many of them have a lot of experience with software vendors and know the ropes when it comes to setting up successful partnerships. Make sure that you establish strong relationships at the executive level with key channel partners to both ease problem resolution and generate strong lead streams.

3.Bring a lot to the party–if you do not bring good, qualified leads to your partners, then you will be ignored. Many start ups erroneously believe that partners will work to drive business to you.  Sometimes, but not very often, this is true. The best way to get good leads is to give good leads. Use permission-based marketing management technologies, such as Vtrenz or Eloqua to attract and forward new opportunities from joint webinars and other marketing campaigns.  Every company values partners who deliver business.

There may be no free lunch in the partnering world, but, done right, it can sure pay for a lot of dinners.

For those interested in a detailed discussion of partnering with one of the Big Boys, see my presentation on Partnering with Accenture in the Resources section of my web site Supply Chain Ventures.