By Ethan Lyon, Senior Writer
“If we are together nothing is impossible. If we are divided all will fail.” While Winston Churchill’s famous words are typically attributed to political and social reform, they also carry great value in business. Partnerships provide great opportunities for entrepreneurs to create larger impact. It is way to share risk, exchange ideas, build capital and pool resources. For instance, if two like-minded entrepreneur’s contribute $500k, it could ladder up to a $1 million goal.
We can learn from all types of partnerships — from Steve Jobs and Steve Wozniak to lesser known partnerships, such as J.P Morgan, the Vanderbuilts and Edison. Partnerships of entrepreneurs and thinkers have shaped the way we communicate, and inspired innovation. By analyzing the greatest partnerships in history, we give you the top five reasons to form a partnership:
Obtain a new skill set
Steve Jobs’ marketing savvy and Steve Wozniak’s intellectual prowess were the essential ingredients that led to Apple’s success. Without one, the other might not have succeeded. After experimenting in Silicon Valley’s Homebrew Computer Club, the two partnered to develop a new type of personal computer. Those early experiments in Jobs’ family garage in 1976 eventually led to the first Apple computers. Ultimately, Jobs’ ability to sell Wozniak’s products made both of them billionaires.
Expand geographically
Coco Chanel was a legendary hero among top fashion circles. It was French financier, Pierre Wertheimer that made her a house-hold name. Pierre partnered with the famous designer to develop her into an international brand. Pierre made the famous Chanel No. 5 accessible to the world, through marketing savvy, business connections and capital. He was able to leverage an existing customer base to catapult Chanel No. 5 and make it one of the best-selling perfumes in history.
Grow customer base
Daniel Baird Wesson was a bullet maker. He also pioneered the repeating rifle (as seen in old westerns). However, he did not have a retail space to sell bullets. According to the Independent, to grow his customer base, Wesson partnered with WH Smith, a newspaper owner, to sell bullets across the country. Today, the Smith and Wesson company is the largest manufacturer of handguns in the US.
Create a leadership position
Amid the growing trend of internet piracy, top entertainment companies partnered to create a free, legal online video player. In March 2007, General Electric’s NBC Universal, News Corp’s Fox Entertainment and the Walt Disney Company’s ABC, Inc. partnered to create Hulu.com. The ownership was shared equally among the entertainment partners (at 27 percent). Through their collective efforts, Hulu created a strong leadership position with unrivaled content.
Fund innovation
Throughout the 1870s and 1880s J.P Morgan and the Vanderbuilts funded Thomas Edison’s research. In 1879, Edison invented the electric light bulb and formed the Edison Electric Company which three years later had produced 121 power stations across the country. The early seed capital from Edison’s partnerships helped fund one of the most important inventions in human history.
Image by Jan Willem Geertsma from Stock.Xchng
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