By The Revman
Jeff talked about several aspects of forming a SBP from looking at the key motivators, the risks, the criteria, questions to ask, and much more. Developing SBPs is not an easy task and requires much thought and planning.
Jeff started with what is a SBP? Good place to start. There are several levels of business relationships but according to Jeff a SBP is defined as…
A relationship that bridges the gap between a full merger and a single length transaction.
Jeff started out with the key motivators and listed several examples in his outline. He stressed the importance of understanding the “why” of building SBPs as the first step in developing effective SBPs. Other thought provoking questions he included were:
- What is it you want out of the relationship?
- How will it help both you and your potential partner?
- Will it allow you to compete for larger contracts and customers?
- Will it allow you to provide expanded solutions without added cost?
One has to understand the “why” of building SBPs before it can work for you.
Jeff then talked some about the risk involved with SBP. From new partners stealing clients to new partners not performing, and to who owns the relationship are just a few of the many risks Jeff mentioned when thinking about forming a SBP. Do any of you have any stories that we can learn from?
Because of the nature of relationship I develop with many of our clients I see many needs that go beyond what we would consider our sweet spot. But because my main goal is to help companies grow, I find myself diving into many different areas of a company. So for several years now I have tried to develop many different versions of a SBP, from a group of experts to service the client’s needs to partnering with specific companies to offer certain solutions that others can provide at a higher level then we can. I have various levels of success, but nothing to write home about.
One result of this event for RevBuilders is that it may be better for us to not develop SBPs, but instead develop the necessary capabilities internally to service our clients.
Jeff talked about many other aspects, but I would love to hear from others that attended his meeting and see what you learned. Please make comments and let us hear from you.