How do you tell when a situation is right for a partnership? The longest-lived partnerships occur where each party brings something to the table that the other lacks. Here are some situations when it makes sense to partner, where for example:

A business offers a unique or desirable product but lacks access to the other’s specific niche market by ’sector’ or ‘geography’.

A potential partner has a large customer base or access to a target market but needs the product in order to complete its own offering, add significant value and, therefore, gain a competitive edge.

A business has a niche skill-set or provides a highly specialised service. Often it makes sense to outsource a function to specialists so you can focus on your core competencies.

One company is trying to break into a new market or expand, and wants to keep its capital costs or staffing costs down. For instance, one company may offer a technology product and needs consulting help for a combined software/hardware/solution sale. Instead of hiring consultants, it might partner with a group of consultants who are already skilled and looking for products to market. That way it keeps its headcount and staffing costs down.

A company can screen and evaluate acquisition targets. This is usually done by larger companies with an acquisitive appetite – a “try before you buy” strategy.