Cooperation vs. Competition in Today's Business

If you are in business today – do you still feel the need to compete? Or are you thinking cooperation? These are two very different business models, which lead to different marketing strategies and outcomes.

Competition

When you think competition; there is or can be only one winner – all others are considered “losers.” My son is fond of saying there is no second best – 2nd place is 1st loser!

Competition too often leads to a scorched earth policy. But when you scorch the earth it’s important to remember that you are on that space too and so is your business. If you scorch all to win – what is really left for you?

But isn’t competition healthy? We’ve been told competition is what keeps the economy going. Right - look where that concept got us today – the Haves have more and the rest of the economy is falling apart. And even if you are a Have – the stores and businesses you rely on are closing. How’s that’s going to help you or your business in the future?

Cooperation

What comes to mind when you think cooperate? Does it needle you? Make you think of weakness? That you are “giving in?”

Those are some old ways of thinking about cooperation – but today we have a new name for it: joint ventures. Joint ventures are not really a new idea. Back when I was in graduate school, Social Psychology was working with the idea of cooperation [win-win strategies] and the Boston area was one place this idea was popular.

[I have always felt that words and concepts we use in any age are just older concepts repackaged in modern labels. The win-win of my graduate school days is now Joint Ventures just as self-fulfilling prophecy is now Law of Attraction.]

One research study back then showed that when there is a common enemy you could work together to reach a goal; even if you were competitors or did not like each other. Today, that “common enemy” need not be an enemy, but instead, a goal to aspire to such as money or success.

How does cooperation help your business? Everybody gains something they want. Working together ensures a win-win scenario for both businesses.

Let’s look at how the win-win scenario of Joint Ventures can work.

You find people or businesses with similar interests or goals or similar customer bases. Even those you might have thought of as “the” competition and think how you might help each other.

Say, for example, I am writing a book for new parents. I ask myself who else has a product for that market - or who already serves that market.

I might reach out to toy stores, diaper companies, hospitals - businesses with babies as a focus - to see if they have an interest in working with me.

I suggest they buy my book and give it away to their customers/clients. The book can be produced with different covers so each company has a version with their logo and information printed on it.

I win because I sell books in large quantities. They win because they have happy clients who appreciate getting a gift along with the service. And their business name is being spread around the community of new parents.

Another example: I do teleseminars. Your business does not but you have a customer base [list] who may have an interest in my product. We cross promote my teleseminars – your base and mine listen and some buy my product.

You win because you are receiving a healthy percentage of the total sales no matter whose list was buying. I still make money and I’ve added names to my own list. Your own customers may also like that you help others by promoting their products.

There are many more ways to work together in a Joint Venture and there are great resources for finding and approaching potential joint venture partners. Joint Ventures are great business opportunities in difficult economic times. Ask me about this. I love to share.