Ask yourself the following questions to help you decide whether forming an alliance is the right move for your business at this point:
- Do you need an alliance? If you can accomplish your strategic goals without an alliance, it’s probably best to go it alone.
- Will both parties benefit more or less equally? Alliances that only aid one side are unlikely to last.
- Are your desired results clearly explained? You should know what you and your ally want out of the alliance, and clearly communicate it.
- Do you have time to manage it? Alliances are almost as time-consuming for top-level managers as running a separate business.
- Is there an exit strategy? An alliance that doesn’t include a clear plan for ending the partnership is headed for trouble.