The power of association

I say “shot”, you’ll likely think “gun”. I say “black” you’ll likely think “white”. It’s more than a popular word game; association can be a powerful tool for businesses. For example I say “van” there’s a good chance “Transit” would pop into your head.

Having that association can be powerful in regards to marketing but how about when it comes to business? Can your association with partners and associates drive your success? Can it aid in raising investment and attracting customers?

Lets look at YCombinator. Through having an association with the most successful accelerator program in the world alumni and participants will undoubtedly find it easier to gain investment, get customers and users and ultimately create a successful business.

Most investors would love to have a YCombinator company in their portfolio, customers will sign up so as they can tap into that deep and diverse YCombinator network. Sure there are a lot of other factors that play into it (first class mentoring, advice and support) but having that association undoubtedly helps.

However what happens when there’s a negative association, what then?

Look at the companies who were once proudly associated with the likes of Tiger Woods and Lance Armstrong drop them as the negativity built around them in recent years. This was out of a fear the association would lead to the negativity having an impact on their brand and performance.

At a personal level I now know I will never use certain service providers, who incidentally are positioning themselves as startup specialists, for their services through the association they have with their clients. That is a direct way in which a negative association has had a detrimental impact on a business I have dealings with.

And to look at the inverse of YCombinator. As a startup an association with a derided and looked down upon accelerator will almost certainly make it even more challenging when raising investment, attracting customers and ultimately being successful.

I suspect an investor would not want the negativity to leach into their portfolio. I also suspect companies would be unwilling to do business due to the fear of the negativity seeping into their brand and turning their customers away.

As with YCombinator the same factors apply outwith the association (lack of quality mentoring, advice and inadequate support) however I strongly believe the negative association here can be terminal to businesses.

My advice, no matter what your company’s size, pick and choose your partners and associates carefully. It seems there’s a new accelerator or incubator opening up every day. Just because you get accepted to *an* accelerator does not mean it’s the right accelerator for your business and therefore your business should not be joining it. Look longer term and think of the damage it could be doing.

Everyone can make wrong and ill informed choices (I’ve made more than most) but be quick to retract and rectify the situation before the association damages your business.