Unlocking growth: 3 keys to thrive through strategic partnerships

Lawrance Ramotala

Partnerships remain a vital tool for businesses to drive growth, expand markets, and innovate. Examples like the collaboration between Shopify and TikTok, where merchants were able to create shoppable videos on the platform in 2020, demonstrate the relevance of these alliances in the modern business landscape. Shopify leveraged TikTok’s vast user base for customer acquisition, while TikTok benefited from Shopify’s ecommerce expertise.

“One of our most valuable offerings is our Technical Assistance Programme, which links experienced business professionals with SME owners in mentorship relationships. This collaboration equips entrepreneurs with the skills, wisdom, technical assistance and support to improve operational efficiency, profitability, and growth. Legal specialist mentors from this programme can also help SMEs to navigate partnerships,” says Lawrance Ramotala, area managerat Business Partners Limited.

The benefits of strategic partnerships are clear. They enable resource pooling, enhanced innovation levels, increased productivity, and access to new customer bases. However, partnerships are not without risks — 60% or more fail due to misaligned objectives, poor communication, or lack of trust. To navigate these challenges, businesses must focus on three critical keys to success.

1. Align on shared goals and values

Partnerships thrive when both parties share complementary goals and values. Clear alignment ensures mutual benefit and reduces conflicts over priorities. For instance, despite being competitors, Apple and Samsung have maintained a long-standing partnership. Samsung supplies key components, including OLED displays and memory chips, for Apple's devices like the iPhone. This collaboration allows Apple to access high-quality parts, while Samsung profits from one of its largest customers, illustrating how even rivals can achieve mutual success.

“Without shared objectives, partners become dissatisfied or disengaged,” says Ramotala. “To avoid this, businesses must establish measurable goals and have a clear understanding of each partner’s contributions from the outset.”

2. Invest in communication and trust

A McKinsey Global Survey found that 66% of successful partnership restructures had developed clear communication plans for all stakeholders. Transparency, trust, and open communication are the cornerstones of successful partnerships. Shopify and TikTok’s partnership succeeded because both parties clearly defined their roles, leveraging each other’s strengths. Shopify enhanced its ecommerce functionality, while TikTok provided unparalleled social media engagement.

A lack of trust or poor communication can derail even the most promising collaborations. To prevent this, partners should set up regular check-ins, clarify roles, and establish dispute resolution mechanisms. Ambiguity in agreements or inconsistent communication can erode trust and undermine progress.

3. Plan for risks and flexibility

No partnership is without risks. Factors such as market volatility, cultural misalignment, or unforeseen challenges can jeopardise success. For example, partnerships between small and medium enterprises (SMEs) and large corporations may face power imbalances or shifting priorities. A contingency plan can address resource shortages or logistical challenges as well as facilitate a restructure as needed.

SMEs must adopt risk management frameworks and prepare for scenarios like:

• technological disruptions
  
• cyber threats, or
  
• regulatory shifts.

With nearly half of global cyberattacks targeting small businesses, for example, partnerships should incorporate cybersecurity measures to safeguard shared resources. Regular assessments can increase the likelihood of creating value throughout the partnership's lifecycle.

“Resilience and adaptability are essential,” says Ramotala. “By planning for diverse risks and being willing to adjust strategies, SMEs can safeguard their operations and maintain stability during times of change.”

Strategic partnerships can unlock immense growth opportunities for SMEs and allow them to innovate, expand, and thrive in competitive markets. “As examples show, partnerships are about building relationships that harness the full potential of aligned objectives to unlock sustainable growth,” concludes Ramotala.