RETHINKING YOUR PARTNERSHIP STRATEGY 12 SUMMER ' 18
SUMO ADVANTAGE AUTHOR BERNIE BRENNER ON WHY YOU NEED TO RETHINK YOUR PARTNERSHIP STRATEGY
DO YOU know the difference between business development and sales? According to Bernie Brenner, CEO of Austin-based Rollick Outdoor and cofounder and former Chief Strategy Officer of TrueCar, many business leaders don’ t.“ People use the term‘ partnership’ loosely,” Brenner says,“ but in a true partnership, you are not selling anything. It’ s not like selling software to a client, because in that case, if the company stops buying your software, the relationship ends.”
Brenner, who spoke at the May ScaleUp Summit 2018 in New Orleans, is author of The Sumo Advantage: Leveraging Business Development to Team with Heavyweights and Grow in Any Economy. In addition to running Rollick, Brenner sits on various boards and spends time mentoring other entrepreneurs on developing heavyweight partnerships.
Creating business partnerships was the crux of Brenner’ s strategy while growing TrueCar, a digital automotive marketplace he cofounded in 2005. TrueCar provides comprehensive transparency regarding automotive pricing and connects customers to its own network of certified dealers. TrueCar counts heavyweights like AAA, American Express, and Consumer Reports among its many partners, leveraging these“ sumo” brands to establish its own credibility— even as a small, relatively unknown company.
Now, as CEO of Rollick Outdoor, Brenner uses the same approach to help retailers and manufacturers connect with customers in the powersports, RV, and marine industries. Through Rollick’ s extensive affinity network with big-name partners— such as insurance giants State Farm and Progressive— both retailers and manufacturers can connect with customers with the backing of a far more recognized brand.“ They may not have heard of Rollick, but they’ ve certainly heard of State Farm,” says Brenner, in explaining his approach.“ When we partner with State Farm, in that instant, we carry the same weight and reputation as they do.”
Brenner is a big believer in forming partnerships to grow a small business into an industry leader because he knows the process works. Yet for many companies, this strategy doesn’ t become an imperative until there is a serious disruption on the horizon.“ Companies are either market disruptors or are at risk of being disrupted by another company,” says Brenner. Partnership formation is an extremely successful business strategy to win market share because it can create a huge differentiation in the market, increasing the quality of customers a company can attract and creating a virtual moat around their business.
You may wonder how Rollick Outdoor, a small company with under $ 5 million in revenues, can possibly attract the attention of State Farm— the largest propertycasualty insurer in the United States, with more than $ 75 billion in revenues. The answer is to find a way to align with your target partner’ s core products. With State Farm, for example, Rollick is able to identify customers who are in the market for an RV or motorcycle, providing valuable information to State Farm about who may need a new insurance policy.
“ Even if a customer has a homeowners policy with State Farm,” says Brenner,“ it doesn’ t necessarily mean they will think of State Farm when it comes time to purchase a motorcycle policy— especially if they’ re constantly exposed to TV commercials touting a competitor.”
Finding the ideal partner is a complex process, requiring proven business development skills— not sales skills. If you are thinking of pursuing the partnership route, be sure to spend plenty of time reviewing options so you understand in advance precisely how you can help your potential partner.“ Once you find what seems like the right fit,” says Brenner,“ you need to create an evangelical pitch of your vision that shows why the two companies should work together. That’ s how you get their attention.”
“ For the first time, partnerships are eclipsing acquisition as a growth strategy for the Fortune 1000,” says Brenner, referring to a September 2016 CEO Outlook report issued by KPMG.“ Companies are finally realizing that partnerships are an important and potentially better way to combat disruption than through acquisitions.”
IT ' S ONLY A DRY PIECE OF BREAD YET TO SOME IT MEANS MEET BERNIE SO MUCH BRENNER.
Bernie Brenner is the host of Extreme Biz Dev( www. rollick. io), a # 1 Bestselling author and business development( BD) expert, securing and expanding strategic partnerships for over 20 years. strategic business development. Bernie is the co-founder and EVP of business development at TrueCar Inc., a company that has changed the way cars are sold across the country.