Jeff Brown, the 43-year-old CEO of Seattle's RadioFrame Networks, takes a different
approach. He says a great alliance is all about matching
corporate cultures. "Two companies can have a common goal, but
if they approach it in different ways, both can get incredibly
frustrated," he explains. "We were lucky and found a partner
who approached things just like we did."
It all started when Brown and RadioFrame founder Rob
Mechaley, 52, saw the frustration of people who had to run to
the window to make cell phone calls at conferences. They
figured installing radio transmitters inside buildings would
make cell phone signals clearer, take the load off the local
cell phone tower, and pave the way for a wireless LAN inside
the building as well.
Before the partners built the system, though, they wanted
to make sure someone would buy it. RadioFrame then focused on
Nextel as a potential customer because Nextel didn't have as
much network capacity as some other telecommunications
carriers, and would therefore value the additional bandwidth
that the indoor radio transmitters would provide.
Mechaley and Brown had previously worked for McCaw Cellular
and knew some former colleagues who had gone to work for
Nextel. Those colleagues helped them find the decision-makers
in Nextel's technology area. By 2000, just a few months after
RadioFrame was founded, the team had already drawn up a bill
of materials to show Nextel how much the system would cost and
a general technical plan of how they would create it.
Fortunately, the managers at Nextel were so intrigued by
the idea, they decided they would not only buy the finished
product, but would also help RadioFrame create it. The two
companies were eager to work together, so even before the
contract was signed in April 2001, engineers were flying
between the Reston, Virginia, headquarters of Nextel and
Radio-Frame in Washington state.
Nextel offered up senior engineers and product planners
with suggestions on the features customers would want. After
initial development at RadioFrame, the team flew back to the
East Coast to test the product in Nextel's labs.
RadioFrame used its innovative business idea to enlist
cash, infrastructure resources and guaranteed sales--all from
one source. From initial talks with Nextel in mid-2000 to a
product on the market at the end of 2001, RadioFrame now
supplies systems to Nextel every month.
"We really worked hand-in-hand with Nextel, from user
requirements to how to physically get the finished product
into their distribution systems," says Brown. "When people
from both companies refer to each other as ‘we,' you know it's
a close relationship."
Find Your
Match
Alliances can get you on the fast track to
become more competitive. With a complementary partner, your
business can blend products, distribution, technical
knowledge, infrastructure or cash to propel you to a new level
of success. The flexibility and power boost they provide can
be a key strategic tool for today's entrepreneurs. And the
best part is that they can go wherever your ideas take them.
| Consider This |
| Don't just check out
your prospective partner's financials--check out their
integrity. What have
other companies' experiences been working with them?
- Brainstorm as many potential pitfalls as you
can. It's easy to imagine all the upside (but often
not all the downside) scenarios.
- Once you've found a partner, use a letter of intent to
outline goals and objectives. This document can
clarify the project, and if it's not looking great,
you can get out of the deal before you're in too deep.
- Limit your own liability: Don't guarantee anything
with personal
assets.
- In case things go sour, create a backup plan for your
company to use your resources another way or get your
money back.
- Monitor the work. Make sure whatever is supposed
to be happening is happening. Audit
personally.
|
Julie
Bick is the author of All I Really Need to Know in
Business I Learned at Microsoft.
