Many small business owners choose alternative strategies to grow their business. 
With the world getting smaller through advances in technology, once isolated companies are coming together to form collaborative relationships. 

Many small business owners conclude they cannot do it alone. Collaboration can help companies grow in a number of ways by leveraging expertise and contacts, and in some cases bringing down the overall cost of business operations.

Companies can work together to:

• provide a range of products/services together, thus enhancing overall value to the customer
• sell each other’s products/services and leverage supply chains and distribution channels
• share costs for such things as tradeshows,  advertising and other marketing activities, thus bringing down costs, sharing contacts and attracting a larger audience
• forming an alliance/partnership where resources including know-how and clients are shared
• developing and using a common brand amongst a group of companies and sharing experiences, expertise, portfolios, references and services as needed. This can present a number of small companies as a much larger entity, thus extending reach and capability.

Any arrangement with another firm or group of firms must be underpinned by an agreement that clearly outlines the understanding of all parties involved.  Key to the success of an alliance and/or partnership is the development of a joint strategy and business plan so that the goals, objectives and key activities are clearly understood and agreed upon.  

Communication between the parties is also critical to ensure success.

Business clusters are one way in which such collaborative groups can be formed.