I have always believed in marquee accounts and great partnerships. I have been suspect of most partnerships. Right now I am president of one of my portfolio companies, which is giving me a really deep visceral perspective to what great partnerships mean.
Big companies are about sales and distribution, not innovation. I believe in R&D, but it is not always best spent inside. Small companies, like my current company, have a deep connection with innovation. Great partnerships are about big companies that realize their strength is customer relationships, and small companies, realizing their strength is not customer relationships. Reduced to its base, its that simple.
By example, you have a great product that solves a problem. You go to a customer that has the problem. You tell your story. All along that customer is distracted thinking about the risk of a small company. They never hear your story, no matter how well it is told.
In comparison, you team with your customers key infrastructure supplier, walk in with the account manager. Deliver your value proposition, and your partner close the deal. The customer knows he can ring the big partners neck if things go wrong. The partner has built good will with the customer, because the partner has implied there is a better solution. You have a reference-able account that can help you pay the developers that back pay you owe them.
- A good partner is focused on sales. A bad partner is focused on reverse engineering your product.
- A good partner has a trust relationship with the customer. A bad partner wants to limit customer options.
It may feel risky to do business with a partner who may have means to be your competitor. Big partners move slow so the threat is small. Though, don't let the partner lock you up in some complex agreement.
In the end, partners count.
