Strengthen Your Business in Uncertain Times: Part II: Synergy - Become partners with a complimentary business

Synergy is the term used to describe a situation where the final outcome is greater than the sum of the individual parts. This can happen when the right two businesses come together and share their information, clients, markets, or other resources. Through synergy, companies can increase revenue and cut costs.

Revenue increases can be found when companies have different, yet complementary products or services that don’t compete with the other business. This gives each company access to larger markets as they share their client base. For example, if a company that sold iPhone accessories teamed up with an iPhone application developer they could both market and sell to each other’s customers without stepping on one other’s toes.

Lowered costs can also take place when two companies come together. The term Economies of Scale refers to the cost advantages associated with expansion of production. Benefits include purchasing supplies in bulk, reducing the number of managers needed, closing an office that isn’t needed anymore, or combining marketing campaigns to reduce cost and risk.

What do you think? Please share an idea or example of how companies can use synergy to increase business and lower costs!


Part I: Reduce Overhead Costs and Debt
Part II: Synergy - Become partners with a complimentary business