There’s a new word in the small business world. Actually, it’s an old word with a new meaning and emphasis is on the business end. That word is collaboration.
In this slowed US economy, many people have been run out of business and many more have had to tighten belts and cut back on luxuries they can live without. The bills come in, even if the customers don’t, and mama still needs a new pair of shoes, so to speak.
More small businesses are collaborating these days, and they’re making a success of their businesses in doing it. In Portland, Oregon, there are three companies; SOWN Designs, Portland Screen Printing and Pigeon Toe Ceramics; three completely different businesses working in a single store-front.
Collaboration in Business can be Key to Success
Nobody shares profits because they are three separate entities; the only things they share are the display space and the bills. With only a third of the expenses, their profit margin is bigger and they are making more money. And, they’re finding that their customers are cross-shopping, or coming in to buy a bag and leaving with a bag and a porcelain bowl.
Another noticeable change in business is that now compatible businesses are sharing trade show tables and booths. It’s expensive to get into those trade shows, and many smaller businesses can’t afford it. But, if two go in together and then maximize the space they get, it can be just like the collaboration in Portland; a win/win situation.
Hillsboro, Oregon’s annual Pass It On Sale put on by locals shared their space with Hart’s Reptile World last summer. So many shoppers brought kids with them and they went wild over the reptiles kept just behind that curtain. Neither the Pass It On Sale, nor Hart’s Reptile World could have afforded the venue alone, but together they each made profits while working side by side.
Take a lesson from this: Collaboration is key during an economic slump!