Hello and welcome to today’s deliberation. Last week, we talked about collaborative investing and how it reduces the risk of investing alone. We also mentioned that it involves individuals and organizations with different backgrounds and expertise but with shared financial goals.
Today, we move it a notch higher and discuss collaborative business.
‘Wise people can also listen and learn; even they can find good advice in these words’’. Proverbs 1:5 NCV
Collaborative business is a dynamic partnership where businesses, services work together towards a common goal, leveraging their collective strengths and resources. In a collaborative business relationship, there is cooperation and shared decision-making. It differs from collaborative learning, which specifically focuses on the process of acquiring knowledge and skills through group interaction. Collaborative business, on the other hand, extends beyond the realm of learning and includes business and finance.
Permit me to illustrate: Just imagine the soft drink giant, Coca-cola decides to branch into the coffee business. Let’s say this is a new venture for Coca-cola and they do not have the supply chain structure for efficient and effective coffee production. So, they go into a collaboration with a business already into effective and efficient coffee production. This business in turn leverages on Coca-cola’s marketing expertise to better sell its coffee. Both, leverage on existing strengths and expertise of the other.
The following are three ways businesses and services benefit from this.
Shared Knowledge and Expertise: By sharing their insights, they contribute to each other's financial intelligence. This collective knowledge enhances business decision-making, broadens perspectives, and leads to better financial outcomes.
Support and Accountability: Collaborative business relationships provide a support system that fosters growth and accountability.
Networking and Opportunities: Collaborative business creates opportunities for networking and accessing new financial possibilities. These connections provide access to potential investments, business ventures, and even career opportunities.
Remember, to achieve this successfully, the objectives of each business must be clear and there should be properly written, understood, legal and agreed upon documentation.
What do you think about a Coca-cola coffee?
As originally published on 26/06/2023