Playbook
Business Development and Partnerships
in collaboration with
TABLE OF CONTENTS
I. INTRODUCTION
II. PARTNERSHIP
TYPES
III. BUSINESS DEVELOPMENT &
PARTNERSHIP STRATEGIES
IV. THE PARTNERSHIP
PROCESS
V. PARTNERSHIP
PROJECT MANAGEMENT
INTRODUCTION
Business development (BD) is the process of identifying and pursuing
growth opportunities to reach new customers. One of the key strategies
in business development is establishing partnerships. In the modern
business world, a partnership is an arrangement between two or more
companies where they agree to work together to achieve shared goals.
Business development becomes a necessary source of growth
for independent advisory firms as they scale. The largest firms
generated 4.8% AUM growth – nearly 2/3 of their new business
overall – from firm business development. Source: Click Here!
Top reason to partner
To enable focus
By partnering with other companies, you focus on your core
competencies and strengths, and let your partners handle other aspects
of the solution. This can help you to maximize your resources, reduce
costs, and increase efficiency.
For a more scalable growth option
Partnering with another company can be a more scalable and cost-
effective solution for user acquisition, compared to hiring a large sales
team.
To increase credibility
Partnering with governments or well-established companies can help
increase your brand’s credibility, thereby boosting its reputation and
attracting more customers.
To reduce cost
Companies can partner to reduce costs by sharing resources and
expertise, such as office space, marketing efforts, and technological
infrastructure.
Common Challenges in BD & Partnerships:
Employee Retention & Talent Acquisition
Reduce Time & Cost Per Hire
Improve Employee Engagement
Critical Foundations and Mindsets to be Successful
Your partners, will prioritize things that bring the
most interest for them
Understand and prioritize your partner's interests and objectives. This can
help you craft a compelling value proposition that addresses their
specific needs and pains, and demonstrates how working together will
bring mutual benefits.
Make things as easy as possible for your partners
By streamlining processes and removing any obstacles or hurdles that
could slow down or hinder the partnership, you can help create a more
efficient and effective working relationship.
Be okay with rejection
Rejection is a natural part of the process and it's important to be okay
with it and not take it personally. Instead, see rejection as an opportunity
to learn and improve, and use the feedback to make adjustments to your
approach.
Prioritize your efforts
This allows you to focus on the initiatives that will have the biggest
impact on your company's goals and objectives.
Be data-driven
This means having a clear understanding of the results you want to
achieve through your partnerships, and setting up systems to track and
measure those results. This helps you to evaluate the performance of
your partnerships over time, and make data-driven decisions about how
to improve and optimize your approach.
Have a diversified growth strategy and do not solely
rely on one BD and partnerships
It's important to be flexible and be able to adjust to unexpected
situations that may arise, such as changes in priorities, market
conditions, or organizational changes within the partner company.
PARTNERSHIP
TYPES
Each type of partnership can bring different benefits, and it's important to
carefully consider your goals and priorities when selecting a type of
partnership to pursue.
To make it simple, these partnerships can be categorized into
three main categories:
Product Partnerships
Product partnerships involve collaboration between companies to create
new products or improve existing ones.
This type of partnership typically involves sharing resources, knowledge,
and expertise to create a product that neither company could create
alone.
Examples of Product Partnerships
Gojek, a leading super app in Indonesia, has many products
and features in its application that are established in
partnership with other companies. This enables Gojek to offer a
wide range of products and services to its customers, while its
partners handle the operational aspects of those products and
services.
Shopee, an e-commerce platform, partnering with a delivery
service provider to offer a faster and more convenient delivery
service to its customers.
Zenius, an online learning platform, partners with Hybe Edu to
create a Korean language course. This partnership allows
Zenius to expand its language offerings and provide a
comprehensive learning experience to its users.
Marketing Partnerships
Marketing partnerships are collaborations between two or more
companies to achieve shared marketing goals. The objective of a
marketing partnership is to improve the sales funnel, by increasing
awareness, driving acquisition, and converting prospects into customers.
Examples of Marketing Partnerships
Collaborate with partners on marketing campaigns or initiatives to
reach a shared goal
Joint Marketing Activity
Offline Marketing Campaign Online Marketing Campaign
The partners split the costs of the This can include a wide range of
marketing tools, such as print activities, such as digital
ads, billboards, or posters, to promotions, user-generated
reach a shared target market content through social media,
and generate brand awareness email marketing, and other forms
for both partners. of online advertising.
Loyalty / Rewards
Partnering with companies who have loyalty or membership programs in
order to support those programs. Potential partners for this type of
partnership could include telecommunications companies, cinemas,
and other companies with rewards/loyalty programs. This type of
partnership is a win-win, as both partners can benefit from the increased
customer engagement and loyalty that results from the partnership.
Affiliated
Partnering with another company to promote your products or services
in exchange for a commission on any sales made through their
marketing efforts.
Guidelines for onboarding affiliate partners:
Highlight the benefits you offer, such as revenue sharing and
complementary solutions.
Emphasize the value you bring to your partner's users.
Build credibility by showcasing your company's reputation and
product/service quality
Distribution Partnership
Distribution partnerships focus on developing channels for distributing
products to reach new markets or customers. It's important to be
creative and consider various distribution channels as they can provide
diverse opportunities to reach your target market.
Examples of Distribution Partnerships
Online distribution channel
Online distribution channels involve partnering with e-commerce
platforms, websites, or online marketplaces to sell products directly to
customers through the internet.
Tokopedia is a well-known and widely used e-commerce
platform that serves as a comprehensive distribution
channel for a diverse range of products and services
Netflix is one of the leading distribution partners for many
films. With the existence of Netflix and other similar
platforms, movies can now be distributed through various
over-the-top (OTT) channels, in addition to traditional
cinemas or offline DVD stores.
Offline distribution channel
Offline distribution channels refer to traditional brick-and-mortar retail
stores and physical marketplaces where customers can go to purchase
products in person. This includes big box stores, grocery stores, and
specialty shops.
Other examples of offline distribution channels:
In addition to bookstores, book publishers can also distribute their
books to libraries and offline learning centers.
Sports accessory brands can not only distribute their products to
sports stores, but also to sports centers such as gyms.
Skincare and haircare brands can distribute their products to beauty
salons.
Other distribution channel
Other distribution channels refer to alternative methods / channels for
distributing your products and services. To identify the right channel,
consider where your potential customers are and who they are engaged
with. Here are some examples:
A children's skincare brand can sell its products through mothers'
communities.
The large ride-hailing companies in Indonesia have millions of drivers
in their communities. If your target audience aligns with this group,
you can explore having them sell your product to their drivers’
communities.
" As far as possible, try not to give any partners exclusive distribution
rights, especially when you are just starting to build out your market
traction as a startup. Doing so limits your ability to enter into distribution
partnerships with other parties and may handicap your growth. If you
really have to grant exclusivity to secure a distribution deal, you could
consider ways to limit it to a specific geography (such as
Jabodetabek), channel, or industry sector, which would
provide you with more flexibility and the opportunity to
work with other distribution partners.
"
- Yaw Yeo
Head of Growth,
BUSINESS DEVELOPMENT &
PARTNERSHIP STRATEGIES
Developing a Partnership Strategy
The following are the four steps in developing a business development or
partnerships strategy:
1 3
Understanding Defining and
Developing
the current prioritizing Defining
growth
state of the levers or Feasibility
strategies
company metrics
2 4
Understanding the current state of the company
This includes understanding the company's Northstar metrics, goals, and
current pain points or needs. Ensure that your strategy aligns with the
company's overall objectives and priorities.
Defining and prioritizing levers or metrics
Identify the key metrics that will drive the function's success. These
metrics should align with the company's goals or Northstar metrics.
Some examples of metrics to consider include: Awareness, Active Users,
Revenue, Time Spent per User, Retention, New Products. By prioritizing
these metrics, you can focus your partnership efforts on the areas that
will have the greatest impact on your business growth and success.
Developing growth strategies
Develop partnership strategies that can help grow these metrics. This
includes determining the types of partnerships that are needed, such as
product partnerships or marketing partnerships.
Defining Feasibility
Conduct a feasibility check to analyze the company's capability and
capacity, including the internal bandwidth and resources. This step is
crucial in ensuring that the partnership strategy is realistic and
achievable.
For example, consider whether it's feasible to do product integration or
launch a big marketing campaign.
Defining Ideal Potential Partners
To ensure a mutually beneficial partnership, it's important to define your
ideal potential partners. Here are some criteria to help you identify the
right partners:
Capability to achieve your strategy objective
Look for partners who have the scale, audience, and technical
capabilities to support your objectives.
Aligned target audience: For marketing partnerships, look for
partners who serve your specific target users or have a similar user
profile. Consider where your target users spend their time and have
the intention to engage.
Compatible products: For product partnerships, look for partners who
have the ideal product you need or the capabilities to develop it.
Shared values
Consider cultural and working relationship fit when evaluating potential
partners.
Mutual benefits
Look for partners who have a need or desire for the outcomes of the
partnership, such as increased revenue or brand recognition.
Good Reputation
Look for partners with a good reputation and no conflict of interest.
Feasible engagement
Consider the leverage you have with potential partners. The more
leverage you have, the bigger potential partners you can engage.
THE PARTNERSHIP
PROCESS
The Partnership Process
There are typically several stages in the partnership process:
Preparation of Approaching Preparation of
the Partnership Potential the Partnership
Pipeline Partners Pitch or Deck
Negotiation and The First
Deal Making Meeting
Preparation of the Partnership Pipeline: This involves
researching and identifying potential partners that align with
your goals and objectives.
Approaching Potential Partners: This involves reaching out to
potential partners to express your interest in a partnership
and initiate a dialogue.
Preparation of the Partnership Pitch or Deck: This involves
creating a presentation or document that showcases the
benefits of the partnership and outlines the goals and
expectations of the partnership.
The First Meeting: This involves meeting with the potential
partner to discuss the partnership opportunity and to assess
whether there is a mutual fit.
Negotiation and Deal Making: This involves working with the
potential partner to define the terms of the partnership
agreement, including the goals, expectations, and
responsibilities of the partnership.
Preparation of the Partnership Pipeline
With your set of criteria for potential partners in hand, you can now start
creating your pipeline to manage the partnership process. Here are the
steps to follow:
Listing the Preparing a
Finding Contact
Potential Tracker
Information
Partners Document
Listing the Potential Partners: Research and identify
companies that match your criteria through various channels
such as:
Google
LinkedIn
Your personal network
Competitors' sites
Industry events
Finding Contact Information: Obtain the contact information
of potential partners through sources such as:
LinkedIn
Reach out directly to potential partners through
LinkedIn chat
The corporate website
Your personal network
Industry events
Preparing a Tracker Document : Create a tracker document
that includes relevant information to track the partnership
process such as:
Company Name
Last Date of Contact
Activity (Meeting, Email, etc.)
Contact Details
Priority
By keeping track of this information, you can effectively
manage the partnership process and ensure that it is
progressing as planned.
Approaching Potential Partners
Here are some important considerations to keep in mind when
approaching potential partners:
1. Relevance: To succeed in engaging partners, research their interests
and make sure your proposal is relevant to their situation and provides
clear messaging around the key benefits for them.
2. Customization: Take a customized, partner-centric approach when
tailoring your communication to fit the potential partner's specific needs
and goals
3. Mode of Communication: Choose the mode of communication that
best suits your potential partners, options include email, phone calls,
WhatsApp, in-person meetings, video conferencing, LinkedIn, and social
media
An email introduction is the simplest way to start, but email may not be
the preferred mode of business communication in Indonesia, especially
in traditional industries like manufacturing and agriculture. Instead, it's
more common to conduct business exchanges through WhatsApp,
phone calls, or in-person meetings. LinkedIn has limited penetration in
Indonesia, with an estimated usage of only 10-15% of the population.
While LinkedIn is useful for reaching tech-savvy industries such as tech
companies, startups, and digital banks, it may not be as effective for
reaching partners outside of the tech sector.
- Yaw Yeo
Head of Growth,
4. Warm Introduction: Try to find a warm introduction to the potential
partner, as this can increase your chances of success.
At Gojek, we approach thousands of potential partners, or
merchants, on a monthly basis. Our warm approach leads to a
40% higher conversion rate compared to a cold approach.
- Novasari Putri
Senior Strategy Manager,
5. Understanding the Partner: Understand not just the partner
company's goals and objectives, but the specific individuals you will be
working with. Consider their motivations, decision-making processes,
and any relevant timelines.
Doing business with partners is first-and-foremost about doing
business with people. Having an intimate understanding of the human
dynamic and navigating that fluently is essential to winning the
partnership, especially in high-context cultures like Indonesia.
- Yaw Yeo
Head of Growth,
Preparation of the Partnership Pitch Deck
Here are the essential components to include in your partnership pitch
deck:
1. Present your company background and credentials to establish trust
with your potential partners. Emphasize your unique value proposition
and reasons for being different or better than competitors. For example,
mention a prestigious program or award you have participated in to
demonstrate credibility.
2. Second, outline the partnership positioning and ideas for collaboration
or solutions. Consider the potential partner's needs and priorities and
ensure that your positioning has high potential to impact their metrics. If
the potential partner already has a partnership with another company or
uses a competitor's product, emphasize the significant values they will
receive through collaboration with you or by converting to your product
or service. Provide a clear and simple path for collaboration or
conversion.
3. If you lack insight into the partner's needs, you can either put a general
positioning that ties your pitch to common metrics or benefits (such as
increased leads, revenue, or cost savings), or you can use the first
meeting as an opportunity to gather information about their needs and
tailor your pitch accordingly. Include additional relevant information in
your pitch deck, such as success stories from existing partners or clients.
Summary and the next steps.
Here are key tips for your pitch deck:
Keep it concise and impactful. The simpler it is, the better.
The presentation of your pitch deck is crucial as it can reflect your
company's branding.
Limit text and incorporate relevant visuals to make it easier to
comprehend. A well-designed deck conveys the professionalism
and reliability of your company.
During Xendit's early days, mentioning participation in the Y-
Combinator program was often used to establish credibility with
potential partners. The goal was not to solely focus on Y-
Combinator, but rather to find and highlight elements that would
build trust and credibility.
- Yaw Yeo
Head of Growth,
The First Meeting
Here are key things to prepare before meetings with potential partners
Set the meeting duration
based on your partner's
profile. For instance, a 30- Name the meeting invitation
minute meeting may be appropriately, such as [Your
sufficient for an initial Company Name] <>
meeting with startups, but an [Potential Partner's Company
hour or longer may be Name].
necessary for a meeting with
the government.
Prepare a script to avoid Anticipate and prepare
forgetting important answers for potential
information and to ensure a questions or concerns from
structured pitch. the partner.
Gather as much
Practice the pitch,
information as possible
if necessary.
beforehand.
Meeting conversation structure can be:
Start with a light
Introduction: Give a brief
discussion: topics such
overview of yourself and
as the weather, mutual
your company
connections, news, or
background.
anything to break the ice.
Information gathering:
Ask about the company's
Present partnership current focus and priorities,
ideas/solutions. as well as the stakeholder's
focus within the company
and any personal
information that may be
relevant.
Next steps: Outline the
next steps in the
partnership process and
make it as easy and
simple as possible for
your potential partner.
Negotiation and Dealmaking
In order to successfully negotiate and make deals, it is
important to determine the terms and arrangements that are
important to you, including any non-negotiable terms. Here are
some tips to help you negotiate and secure the terms you
want:
Understand your and your partner’s leverage and
maximize it. By this stage, you should have a good
understanding of your leverage based on your previous
research and positioning, but you may need to readjust it.
If you want to negotiate for better terms, consider being
creative in your offer by offering alternative or additional
terms that will benefit your partner, such as exclusive
access to data or additional free support.
When faced with requests that you cannot fulfill, clearly
and respectfully explain the non-negotiable situation,
such as stating that it is a management decision or a lack
of resources from the product team.
When pushing for specific terms, present your improved
positioning in a polite and acceptable manner. You do
not want to come across as annoying or difficult.
Make yourself easy to communicate with and try to make
the process as smooth and straightforward as possible
for your potential partner. It is also important to
remember that they are more likely to work with you if
they like you.
Negotiation and Dealmaking: The Agreement
It is crucial to have a clear understanding of your company's
legal requirements and procedures for partnerships before
entering into an agreement stage. Some questions to consider
include:
What parts of the agreement need to be completed
by the business development or partnership team?
Is a non-disclosure agreement (NDA) necessary
before each agreement? Does your company
accept NDA templates from other companies?
Are agreements required for non-monetary
partnerships?
Are legal documents necessary for screening before
drafting the agreement?
What is your company's term of payment (TOP)?
As the main person in charge of a partnership project, it is your
responsibility to fully understand the agreement and ensure
that all relevant and critical terms are included. Here are some
terms to keep in mind when reviewing a partnership
agreement:
The exclusivity of the partnerships: be careful
in considering whether you really need
exclusivity or not as it may limit your growth
potential.
Access to relevant partnership data from
your partner's side: it is crucial for you to be
able to monitor the performance of the
partnership or its contribution to your own
metrics
Termination or exit terms: you should have a
way out in case the partnership doesn't work
or there is an unforeseen external or internal
situation that makes the partnership no
longer viable.
Roles and responsibilities for both parties: this
may include a timeline with a clear output or
implementation deadline.
PARTNERSHIP
PROJECT MANAGEMENT
Managing The Partnership Project
Maintaining Relationships with Partners
Having signed the agreement is just the beginning of a partnership. To
make the partnership successful and productive, it is important to
nurture the relationship you have built with your partners. Here are some
tips to help you build and strengthen your relationship with your partners:
Regular communication
Regular communication is key to building trust and keeping your
partnership strong. Schedule regular check-ins with your partner, to
discuss the progress of the partnership and any potential issues that
may arise.
Set clear expectations
Make sure that both you and your partner have a clear understanding of
what is expected from each other in the partnership. Establishing clear
expectations from the beginning can help avoid misunderstandings and
conflicts down the road.
Resolve conflicts quickly
Conflicts are bound to arise in any partnership. It is important to address
conflicts quickly and effectively to avoid damaging the relationship.
Listen to each other’s perspectives, find common ground and work
together to find a resolution that is beneficial for both parties.
Celebrate successes
Celebrate the successes of the partnership and acknowledge the
contributions of your partner. This can help build a positive and
productive relationship and foster a sense of teamwork and
collaboration.
Leading Internal Team Collaboration
When it comes to partnerships, the partnership team may serve as the
project leader, coordinating efforts with various internal stakeholders,
such as the marketing team, product team, finance team, etc.
Get internal stakeholders on board
Make sure that all relevant internal stakeholders are aware of the
partnership project and understand its importance. Communicate the
goals, timeline, and expected outcomes of the partnership project to all
internal stakeholders, and ensure that they are on board and ready to
work together.
Assign roles and responsibilities
Once you have everyone on board, it is important to assign clear roles
and responsibilities to each team member.
Set up regular communication channels
Set up regular meetings, calls, or email updates to keep everyone
informed and on track.
Monitor progress and provide support
Regularly monitor the progress of the partnership project and ensure
that all internal stakeholders are meeting their deadlines and delivering
on their responsibilities. If someone is facing a challenge or obstacle,
provide support and guidance to help them overcome it.
Monitoring and Evaluation
Monitoring and Evaluation
it's time to set up a monitoring system or documentation that is
integrated into the project plan. Consider the following tips to ensure a
successful monitoring and evaluation process:
1. Design your monitoring dashboard or documentation in a way that
clearly connects your target metrics to the events or variables related to
the partnership project. Be meticulous when it comes to the numbers.
2. Ensure that your monitoring dashboard is ready before the project
begins. Test it if necessary to ensure that data can be accurately
captured from the start.
3. Start monitoring the data as soon as the project is launched. If any
issues arise, make adjustments or improvements as soon as possible.
4. Regularly evaluate the project's performance in collaboration with all
internal and external stakeholders.
5. Implement either synchronous or asynchronous monitoring methods
to keep track of progress, and take the initiative to identify and address
any potential roadblocks or support needs for you or other stakeholders.
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