5 Ways Small Businesses Can Help Each Other
Small businesses make up a significant chunk of America’s modern workforce. According to the U.S. Small Business Administration (SBA), there are 23 million small businesses in operation today. Collectively, small businesses have accounted for 55% of all American jobs since the 1970s – just over half of the nation’s employees. But while small businesses are prevalent, they still face their own set of challenges, such as finding ways to save money and increase their business capabilities. We’ve compiled a brief guide on how to boost business and cut costs by partnering with other small businesses.
1. Share a space
Paying rent puts a dent into the profitability of any business, especially if a company is located in an urban area where rents are through the roof. One easy way to slash rent costs and boost profits is by sharing a space. Explore the possibilities of splitting an open office, or sharing the same floor of one building.
2. Pool your resources
Sometimes, two heads are better than one. Other businesses may have access to valuable networking connections or even physical resources that your company wouldn’t be able to obtain on its own, and vice versa. You may be able to find a mutually beneficial arrangement with another company, such as an exchange of services, that allows both of your entities flourish.
3. Form alliances
Many people think that, by default, businesses have to enter into cutthroat competition against each other. However, this isn’t true in every case. For example, two businesses can comfortably promote each other on Facebook or Twitter, or provide guest blog posts for each other. These actions won’t lose customers, but will actually bolster your audience as a whole.
4. Support small business
We’ve all heard the slogan, “Support small business.” It isn’t “support your own small business” – it’s simply “support small business.” If you make a point to shop with other small businesses in your area instead of with large corporations, you help foster an economic climate where small businesses – including your own – have a better chance of succeeding.
5. Join an organization
There’s strength in numbers. Consider joining a trade organization like the Main Street Alliance (MSA), where you can network with other small businesses. You never know when another company will be able to help you in a problem area, recommend your services, or introduce you to someone who can help your business grow.