While I keep writing about this concept, I am amazed myself by the amount of benefits that “riding the elephant” can have for you, if you nurture the elephant well. The elephant is very loyal and friendly creature if you take care of it and feed it with bananas. But if angered it also tends to go o a rampage and destroy things.
So if you nurture the elephant then while you can take 5 small steps, it can take one large one, so if you are riding it, you can cover a larger distance through the forest versus on foot. Also other wild animals won’t attack you when you riding the elephant.
Some of this is also true with hitching your bandwagon with a large partner (like an OEM) your market reach expands at an amazing speed. These large companies have massive growth agendas so they have big plans to execute and go out in the market. Once they start trusting you they will also take you along with them. You will need to do networking within these companies. Being large it is difficult to navigate through the matrix structure, but if you are determined, and take affirmative action you will be able to find your way. It may take time, so you need to have marketing stamina to last in the market.
As a small company you may not have the bandwidth to fund that kind of a growth, but with the help of the partner you can actually get the volume of business to fund your growth.
There’s once challenge though. Since the partner wants to grow rapidly they will expect you to comply with their demands in terms of the margins you make. These situations you have to manage delicately. What can help is knowing the life time value of a customer. So you know how you will make money from the customer in the long term.
If you know how to manage relationships, this is one of the best ways to grow your business.
Till next time then.