NFIB

Contact the Competition to Expand
04/ 02/ 2002

If you're looking for ways to expand your business, don't rule out contacting services that you would normally consider to be competitors. Call them up and see if they have too much work to handle, in which case they could benefit from using you. Then, too, they might be eager to expand, and be able to use your services as the way they can handle new clients. Workshop contributor Jeff Moses, who has used this principles to great advantage in his freelance writing business, offers a few tips on how to pull this off.

It's important to not think of the person or company you're calling as a "competitor." Just consider that both your companies are in the same business, with a very large number of potential end clients. For example, as a freelance writer, I contacted advertising agencies, graphic designers, print shops and even other writers to see if they could use my services. Once an alliance was formed, we then worked together as a team. In this respect, we were far from being "competitors."

When first contacting a company to see if it is interested informing an alliance, make sure that you talk with the person who has the power to make such a decision. An assistant or secretary won't do -- you always have to go directly to the CEO or owner. Anyone else won't have the power to make a decision along this line.

When you're speaking with the decision-maker, tell him or her exactly what you do, what experience you have, and that you're calling to see if they ever have need for someone like yourself, either because they occasionally get too busy or are thinking about expanding.

The main thrust of your first phone call should be to find out exactly what needs they have. Are they losing potential income because they're turning down work? Are current employees stressed out because of their long hours? Does the owner of the business have to oversee everything himself? Try to determine exactly what shortcomings the business has, then offer yourself as the solution.

You may have to charge lower hourly fees for your work so that the company you're contacting can mark them up. Know before you call exactly what the lowest hourly rate is that you'll take.

When it comes time to talk about fees, make sure that they're aware you're flexible and understand that both parties must benefit to make an alliance work. Say something like, "We both have to make enough money on this if it's going to be worthwhile. What could you pay someone and have it be profitable for you?" If they're insistent that you name an hourly or per-project rate, just tell them straight out. Be honest from the start. If they can't work with what you need, they won't be a good partner in the short or long run.

This networking concept works with a wide varieties of businesses, including, to name just a few: advertising of all types, financial services, repair and maintenance work of many types, personal services, etc. Remember, you're looking for a good "fit." Present yourself as a professional and don't bend too much. Working out a "strategic alliance" of this nature can help get your business off the ground, but don't sacrifice too much in income or time.

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