The Long-Term Value of Sign Business Alliances

The Long-Term Value of Sign Business Alliances

When properly structured, business alliances drive profit and provide long-term benefits in all industries, from signage to pharmaceuticals.

In a 2011 keynote address at the ASAP Pharma Council in Basel, Marc de Garidel, Chairman and CEO of Ipsen, indicated that over 40% of revenues came from alliances.

One year after Garidel’s eye-opening declaration, researchers launched the 2012 ASAP State of Alliance Management study in order to better understand how business alliances affect company performance.

Their findings indicated that companies entering structured strategic alliances performed consistently better than ad hoc unstructured business partnerships, with average success rates of 53% and 80%, respectively.

Researchers posited a number of reasons why unstructured alliances fail, including:

  • Clashes between organizational cultures
  • Incompatible objectives
  • Inadequate executive commitment
  • Deficient governance structure
  • Lack of leadership
  • Overestimated market demand or ineffective terrority system

The report also indicated that alliances between new businesses had much higher failure ratings than those struck between experienced partners. This probably isn’t too surprising–everyone knows that experience matters. But interestingly, the business benefits of experience were transferable, so that alliances between experienced companies and new owners had success ratings comparable to those of “dream team” partnerships between highly experienced parties.

What does this say about the long-term value of a sign business alliance?

First, the State of Alliance Management study gave credence to the fact that alliances boost long-term profitability. The Signworld business alliance is designed to boost partner profitability in a number of ways, including:

  • No royalties. Unlike franchises and certain business alliances, there are no ongoing fees to be paid as a Signworld partner. We want you to keep everything you earn.
  • Sleek and profitable business system. We use a small staff of career employees, minimize overhead expenses, and maximize your online and offline sales with a business model that’s been refined over decades.
  • Smart territory system. We make sure our allies always have enough business and never compete with one another. To do so, we give you a protected territory consisting of a contiguous cluster of zip codes which contains up to 3,000 businesses. Signworld will not sell or set up another sign company within this area.
  • Supply discounts. After more than 32 years in business, we’ve built a number of great relationships with vendors across the country, many of whom offer our partners valuable discounts on supplies, equipment, and services.

Second, the State of Alliance Management showed that a successful business alliance is more than a partnership between two owners. To truly unlock the long-term benefits and profitability boosts that these partnerships have to offer, you need to find a structured alliance with strong management, clear objectives, and cohesive organizational culture. Little did the ASAP researchers know, they were basically describing the Signworld model!

Learn About The Long-term Value Of The Signworld Business Alliance

Visit the Signworld website or call 888-765-7446 to learn more about the costs, eligibility requirements, and long-term benefits of the Signworld business alliance. Every consultation is 100% free and there is never any commitment for you to join.


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