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3 Key Benefits of Partnerships Between Local Small Businesses

One of the major obstacles most small businesses are up against is in trying to compete with global mega corporations, especially in terms of pricing. It’s almost impossible to keep prices as low when those giant companies can afford to ask much lower prices for comparable products. At least, they are “comparable” in the eyes of most consumers but, in reality, they often suffer in terms of quality.
With that said, today’s small local businesses can benefit by partnering with other local businesses in some key ways. Here are just a few of those benefits partnerships can offer.

1. The Trust Factor
Even though more and more consumers are making online purchases, there is still a large portion of the population that would rather shop locally. This is often because they lack trust in business entities that they are unfamiliar with. Either products they take a chance on ordering are inferior in terms of quality or they never even receive items they’ve paid for. Local businesses can help instil trust in other local small businesses simply by partnering with them. Customers are more apt to take a chance on local businesses recommended by other shops than those they have never heard of for the very reason mentioned above. One way to build a network of trusted local businesses is to dedicate a page of referrals on your bespoke website.

2. Immediate Brand Recognition
This is, perhaps, one of the best benefits to be had when partnering with other local small businesses. It can take years to build brand recognition when doing business in a local community.
For this reason, it can be a huge benefit of partnering with another business that has a solid reputation in the community. Sometimes all it takes is mentioning a delivery service your company uses to begin growing a customer base for that local trucking concern. In like manner, that delivery service can mention you as a client and as a result, both businesses gain recognition. A local network of small businesses recognising other SMEs in their local community is an effective way of growing brand recognition for business partners.

3. Sharing Costs to Increase Profits
Have you ever wanted to order something at wholesale prices but didn’t need a sufficient amount to qualify for the bulk discount? There may be other businesses in your community that you could partner with when making an order. For example, cleaning supplies or disposable masks you offer to your customers during times when the pandemic is spreading in your community. No matter what
the product is, if you can find other small businesses that need those products and would like the bulk discount, one shop makes the order, and each store pays a share of the cost.

These are just a few of the key benefits of partnering with other small businesses in your community. However, since trust is so hard to instil in the minds of today’s consumer, remember that it pays to refer trusted partners in the community on your website. If each of those do the same, you will find that consumers just might begin keeping their business local and all because you publicly recommend each other on your respective websites. That’s local partnering at its very best.


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