Partnerships are a fundamental component of the [[Business Model Canvas (BMC)]], representing external companies or entities that provide resources or perform activities crucial for the startup's operation and success. These are not just casual business relationships but are integral to making your business model work, offering [[access to resources]], [[access to customers|customers]], activities, and other essentials that your company might not possess internally. The nature of these relationships can vary significantly, from [[strategic alliance|strategic alliances]] with non-competing firms to joint ventures or even [[coopetition]] with nominal rivals. The key is to clearly define what your startup will do and what your partners will contribute.    The motivations for a startup to seek partners are multifaceted and compelling. A primary driver is [[shared economics]], where both parties have a vested financial interest in the success of the collaboration. Beyond this, partnerships can offer significant [[economies of scale]], allowing a startup to leverage a larger company's established supply chains, volume discounts, or extensive sales force. Access to a partner's existing [[access to resources|resources]], such as technology, infrastructure, or specialized knowledge, can also be a major draw, as large companies inherently possess more of these than a nascent startup. Furthermore, partners can provide invaluable [[access to customers]] and established [[marketing channel|marketing channels]] or [[brand credibility]], such as associating with well-known labels like General Electric or Intel.    Defining a true partnership relies on the principle of a [[two-way street]]. It is essential for a startup not only to understand its need for a partner but also to communicate the value it can offer to potential partners. This involves explaining why the partner might benefit from collaborating with the startup, whether for success or to mitigate potential challenges. Such partnerships may involve co-development, joint invention, or serving shared customers. However, startups must recognize the inherent asymmetry in most potential partnerships; a startup is often a small entity compared to established corporations, which can create unique challenges and pitfalls that differ from partnerships between companies of similar size. Next: [[Types of Partnerships and Their Strategic Value]] Back to: [[Who Will Be Your Key Partners?]]