Finding Business Partners, Not Rivals

SMITH BRAIN TRUST — Some people think business is all about crushing the competition. But Anil K. Gupta, the Michael D. Dingman Chair in Strategy and Entrepreneurship at the University of Maryland’s Robert H. Smith School of Business, says smart entrepreneurs focus more on collaborating with partners in their ecosystem. “If you succeed, it will not be because you want to succeed or because you’re super brilliant,” he says. “It’s because customers benefit from your success. Some alliance partners benefit from your success. Some suppliers benefit from your success.”

Gupta says many entrepreneurs fail to recognize their place in the ecosystem around them. “There are stakeholders who actually want you to succeed,” he says. “Their company’s success is tied up with your success. So they are you partners. Can you leverage them?”

He says customers waiting for a leading-edge product or service might be willing  to pay in advance in exchange for a period of exclusive access. Suppliers might be willing to give better payment terms to help you succeed. Even big companies such as IBM, Microsoft and Google will want to help you if it helps them. “Look at the ecosystem around you, not just inside your company,” he says. “And there may well be partners.”

Read more: How Smart Entrepreneurs Manage Risk and Uncertainty, by Anil K. Gupta and Smith School MBA alumnus Haiyan Wang, in “The Perch,” Feb. 9, 2016.

Additional videos:

Nine Things That Smart Entrepreneurs Do (4:17): Gupta shares nine risk-management strategies for entrepreneurs.

Why Business Plans Matter (1:52): Venture capital firms might read your business plan, but not for the reasons you think. Gupta explains.

Five Things You Don't Know (2:16): Entrepreneurs, especially in the fast-paced world of technology, must make assumptions about many things in business. Gupta shares five areas of uncertainty that can make or break a startup.