Laflamme, development of Les Services Partnerships For Growth: Alliances can bea small company’s ticket to big- In today’s competitive, global business environment, smal! and medium-sized companies are find- ing that partnerships can be the “ “key to unlocking new markets and - achieving sustained . growth. ‘Indeed, strategic alliances that make use of complementary - strengths often generate a synergy “and. market momentum which would: be beyond the reach of individual enterprises. ‘Such alliances can range from long-tecta joint venture and part- nership agreements to project-spe- “cific consortiums or--the latest ’, trend--so-called “virtual corpora- tions”, ‘which, band companies “together temporarily to take -advantage of brief windows of Opportunity. Licensing and distri- bution agreements are another ~ common form of alliance that can significantly reduce the risks -small. companies encounter in “tackling new markets. And many Small businesses forge rewarding - partnerships simply by establish- ‘ing’closer, more clearly defined “working relationships with major customers and suppliers. ‘Conditions ripe for alliances Experts cite changing business - conditions, including the elimina- . tion-of trade barriers and the fow- ering of costs for international - communication and foreign travel, as key factors behind the recent “. “rush to farm strategie alliances. ‘Given’ this climate, strong ‘incentives exist for companies -with global aspirations to go the ‘partnership or alliance route-- quicker entry to target markets, “lower costs and reduced risks. ‘This. is especially true for firms -that wish to expand beyond the U.S. market, which accounts for about 75% of all Canadian “exports, -Management consultant Jordan "Lewis: put. the case -for strategic ‘-alliances in'a’more statesman-like ~~ “perspective in a recent article: “. “No company or nation can stand alone any longer, “Lewis wrote. “The high ground in the world we’ are entering is going to be held by companies and countries a that learn how to work across organizational, national and cul- tural boundaries and to cooper- “ale with each other.” Strategic alliances are espe- cially popular in the advanced technology seclor--and for good ‘Teason, according to Lise vice-president, CartoGraphiques 2+1 Ine, a ~ Hull, Que.- based firm that is -- regarded as hot stuff in the high- tech world of digital map-mak- ‘ing. “As a small, relatively unknown company in the saft- --ware field--where the life cycle of products tends to be short,” she says, “you can’t afford to -. {just sit around making the odd sale, hoping that prospective customers on the other side of the country or the other side of the world wil] somehow hear about your terrific Product and break down your door.” Consequently, -2+1 Inc. has forged an alliance with British- based Laser-Scan Holdings PLC to markel the Canadian compa- ny’s pioneering ACE (Automat- ed Cartographic Editing) soft- ware world-wide. With 25 years of experience in geographic ‘information systems or “GIS” technology, Laser-Scan has the international reputation and world-wide sales and distribu- tion network required to get the job done. What’s more ACE will be sold under the well-known Laser-Scan banner, thereby avoiding the costly and time- consuming campaign that would be required to build brand-name recognition for 2+1 in global markets. As it happens, 2+1’s ACE software was developed using — Laser-Scan’s core technology-- . so the two companies had more than-a passing knowledge of one another when their alliance was forged. That's important because, as Laflamme will tell you, the choice of an appropriate partner is the single most important factor in determining the ultimate success of an alliance. - Synergy a factor “You need to be sure thal the synergy--the chemistry--is there, in terms of shared values and goals as well as the concept of mutual benefit,” she stresses. “If I'm going to give you something of value--in this case, my lead- ing-edge technology--f want something of equal value back. In the long run, afliances must offer a fair exchange to the respective partners or they won't last" early days of her firm’s relation- ship with Laser-Scan, when 2+1 was simply another potential customer for the much-larger British company, “they always treated us well. And if they behave that way with their cli- ents, they'll likely behave that way with their partners.” While acknowledging that there are potential pitfalls asso- ciated with partnerships, Laflamme says the reality today is that companies--especially small companies --can’t do eve- rything on-their own. “I believe that concentrating on a niche is the secret, focusing on the pur- suit of excellence in your own particular area of expertise. Then, look to alliances to pro- vide those complementary skills and services required for success in the marketplace.” Alliances not for all Of course alliances are not for every company or every indus- trial sector. They require hard “LEaflammé” “noted: ‘that in’ the °*” time global markets work and Flexibility and, even if commercially successful, can sometimes undermine a partn- er’s independence and distinct identity, - [In a’ recent issue of Inc, authors Jessica Lipnack and Jeffrey Stamps reported that increasing numbers of small firms wishing to gain collective market strength while maintain- ing their independence are turn- ing to loosely knit networks of companies as an alternative to formal partnerships. Such net- works generally are organized around-a well-defined joint pro- ject, have simple shared goals and, ideally, involve people at a number of different levels in the participating companies in order to. ensure e f fective communication. ‘ Regardless of the form they take, experts say that the allianc- es most likely to succeed are those where partners behave as equals. The deals themselves needn’t be structured on a 50-50 basis. Nor is shared decision making mandatory--or even wise. (In fact, most advisers rec- ommend giving one partner sole authority over joint venture or setting up a completely auto- nomous operation answerable to its own board.) What is import- ant is maintaining a spirit of cooperation and paying attention to the interests of both partners behave as equals. The deals themselves needn’t be structured on a 50-50 basis. Nor is shared © decision making mandatory--or even wise. (In fact, most advis- ers recommend giving one partn- er sole authority over joint ven- tures or setting up a completely autonomous operation answer- able to its own board.) What is important is maintaining a spirit of cooperation and paying alten- tion to the interest of both partners. How to pick a partner Here are a few other consen- sus tips on how to choose the right partner and help ensure your prospective alliance will work: * make sure the prospective partners bring complementary strengths to the alliance, along with compatible corporate cultures; * ensure that both parties are - fully committed to making a go of the alliance; * carefully weigh the pros and cons of the proposed partner- ship-saving money generally is not, by itself, sufficient reason to enter:‘an-alliance. There should also be other benefits in terms of market gains and/or access to new technology; «make certain that any agree- ment clearly spells out the mutual objectives of the pro- posed partnership and takes into account the shared risks FRANCHISING WORKSHOP Wednesday, October 26, 1994 Coast Inn of the West, Terrace, BC 9:00 a.m. - 3:00 p.m. $20.00/person (includes luncheon 12:00 p.m. - 1:30 p.m.) Luncheon Speaker - Campbell Stewart A&W Owner/Operator This workshop is tailored for those who are looking for franchise opportunities. The workshop will provide general information on franchising. The workshop covers: » Why franchising is so successful «Is franchising right for you? « How to select a franchise « How to select the industry : we « What does a franchiser expect froma prospective franchisee In addition, Ken Earl, from the Royal Bank will provide information on. financing for franchises, and Lloyd Shears af FranNet will have information on specific franchise opportunities. Call Danielle Merkel - FBDB, Terrace at 604-635-4951 or 1-800-663-5035 for reservations today! the THE : CANADIAN CHAMBER Province of HH British Columbla Ministry of Smal! Business, Ly OF RD BBD retusat nvsinsse nevetcament tant, > Bro Fangs [adarole ft déesocoem int Tourism and Culture The Terrace Standard, Wednesday, October 19, 1994 - D3 Browsing Through Your Friend's Closet If there's something comfortable and familiar about Class Act Consignments, that's exactly what the owner Alice Geelner intends. She hopes walking Into her store will make customers feel like they're browsing through their friend's or family’s closet - except her store is a much larger and deluxe version. Class Act Consignments carries quality new and “like new" used clothing and accessories for the whole family. “Gor-Tex™ jackets, Birkenstacks™, boots, . designer labe! fashions plus Osh-Kosh™, are | amount the stock arriving daily,” says Alice. eae “You can find some fantastic bargains on quality goods in here. One thing ta remember | is that people from the region shop all over the world, Our stock includes cosmopolitan choices as well as everyday clothing items.” The challenge in sales is to offer a reasonable sale price on the clathing as well as offera fair return ta the person cansigning the article, she says. And if you've been hiding someone else's perfect skirt or top in your closet, make sure you make an appointment to consign your clothing with the staff at Class Act Consignments. Class Act Consignimen 3239 Kalum St., Terrace For an appointment to consign clathing call 635-6690 Experience You Can Count On| A partnership that spans three generations - that's Eckland Denture Clinics. “Dad started the business in 1942, | joined in 1972 and my daughter just joined the practiced in 1992,” says Gerald Eckland. “We are the very tirst to have three generations of licensed denturists in the world,” he says, And that accumulated experience has benefited their patients. Asmail back corner business in Burns Lake has grown into the largest denture practice in the province, serving patients throughout the Northwest, and from as far away as the Lower Mainland and Alberta. Most patients come for the economical and successful Eck-Tech defture technique which Gerald and his father developed. “We boast a 97% success rate,” says Gerald. "97% of our customers are 100% satisti al . ~ Eckland Denture Clinics Smithers . Terrace: . Burns Lake 847-5318 635-1288 692-7626 ee GERALD ECKLAND, RD, FCAD TRACEY ECKLAND, RD 1637 BUSINESS DEVELOPMENT CENTRE * Have a problem with your present business? © + Want to start your own business? - oo Require business planning to get your business off ‘the ground Require a business loan which is not available from regular bankit ig institutions? Want to know about the programs and possible grants that are available to businesses? Need someone to discuss your business with in a confidential manner? 1 IF YOU ANSWERED “YES” io any of these questions, then contact our office and set up. an appointment with one of our counselors. OUR PROGRAMS INCLUDE: Business Planning Counseling 2 a Self-Employment Assistance Program 7 Lenders of Last Resort Marketing Viability Assessment ommunity Futures And You... 16-37 COMMUNITY FUTURES 46-37 BUSINESS DEVELOPMENT CENTRE 204 - 4630 Lazelle Avenue >. Terrace, B.C. V8G 186. Partners ~ Phone: 635-5449 or 1-800-663-6396 For Growth