Does Having Kids Make You Happy?

1Research has found that having children is terrible for quality of life—but the truth about what parenthood means for happiness is a lot more complicated.

Few choices are more important than whether to have children, and psychologists and other social scientists have worked to figure out what having kids means for happiness. Some of the most prominent scholars in the field have argued that if you want to be happy, it’s best to be childless. Others have pushed back, pointing out that a lot depends on who you are and where you live. But a bigger question is also at play: What if the rewards of having children are different from, and deeper than, happiness?

The early research is decisive: Having kids is bad for quality of life. In one study, the psychologist Daniel Kahneman and his colleagues asked about 900 employed women to report, at the end of each day, every one of their activities and how happy they were when they did them. They recalled being with their children as less enjoyable than many other activities, such as watching TV, shopping, or preparing food.

Other studies find that when a child is born, parents experience a decrease in happiness that doesn’t go away for a long time, in addition to a drop in marital satisfaction that doesn’t usually recover until the children leave the house. As the Harvard professor Dan Gilbert puts it, “The only symptom of empty nest syndrome is nonstop smiling.”

After all, having children, particularly when they are young, involves financial struggle, sleep deprivation, and stress. For mothers, there is also in many cases the physical strain of pregnancy and breastfeeding. And children can turn a cheerful and loving romantic partnership into a zero-sum battle over who gets to sleep and work and who doesn’t.

As the Atlantic staff writer Jennifer Senior notes in her book, All Joy and No Fun, children provoke a couple’s most frequent arguments—“more than money, more than work, more than in-laws, more than annoying personal habits, communication styles, leisure activities, commitment issues, bothersome friends, sex.” Someone who doesn’t understand this is welcome to spend a full day with an angry 2-year-old (or a sullen 15-year-old); they’ll find out what she means soon enough.

Read: It isn’t the kids. It’s the cost of raising them.

Children make some happy and others miserable; the rest fall somewhere in between—it depends, among other factors, on how old you are, whether you are a mother or a father, and where you live. But a deep puzzle remains: Many people would have had happier lives and marriages had they chosen not to have kids—yet they still describe parenthood as the “best thing they’ve ever done.” Why don’t we regret having children more?

One possibility is a phenomenon called memory distortion. When we think about our past experiences, we tend to remember the peaks and forget the mundane awfulness in between. Senior frames it like this: “Our experiencing selves tell researchers that we prefer doing the dishes—or napping, or shopping, or answering emails—to spending time with our kids … But our remembering selves tell researchers that no one—and nothing—provides us with so much joy as our children.

It may not be the happiness we live day to day, but it’s the happiness we think about, the happiness we summon and remember, the stuff that makes up our life-tales.” These are plausible-enough ideas, and I don’t reject them. But other theories about why people don’t regret parenthood actually have nothing to do with happiness—at least not in a simple sense.

One involves attachment. Most parents love their children, and it would seem terrible to admit that you would be better off if someone you loved didn’t exist. More than that, you genuinely prefer a world with your kids in it. This can put parents in the interesting predicament of desiring a state that doesn’t make them as happy as the alternative. In his book Midlife, the MIT professor Kieran Setiya expands on this point.

Modifying an example from the philosopher Derek Parfit, he asks readers to imagine a situation in which, if you and your partner were to conceive a child before a certain time, the child would have a serious, though not fatal, medical problem, such as chronic joint pain. If you wait, the child will be healthy. For whatever reason, you choose not to wait. You love your child and, though he suffers, he is happy to be alive. Do you regret your decision?

Read: How adult children affect their mother’s happiness

That’s a complicated question. Of course it would have been easier to have a kid without this condition. But if you’d waited, you’d have a different child, and this baby (then boy, then man) whom you love wouldn’t exist. It was a mistake, yes, but perhaps a mistake that you don’t regret. The attachment we have to an individual can supersede an overall decrease in our quality of life, and so the love we usually have toward our children means that our choice to bring them into existence has value above and beyond whatever effect they have on our happiness.

This relates to a second point, which is that there’s more to life than happiness. When I say that raising my sons is the best thing I’ve ever done, I’m not saying that they gave me pleasure in any simple day-to-day sense, and I’m not saying that they were good for my marriage. I’m talking about something deeper, having to do with satisfaction, purpose, and meaning. It’s not just me.

When you ask people about their life’s meaning and purpose, parents say that their lives have more meaning than those of nonparents. A study by the social psychologist Roy Baumeister and his colleagues found that the more time people spent taking care of children, the more meaningful they said their life was—even though they reported that their life was no happier.

Raising children, then, has an uncertain connection to pleasure but may connect to other aspects of a life well lived, satisfying our hunger for attachment, and for meaning and purpose. The writer Zadie Smith puts it better than I ever could, describing having a child as a “strange admixture of terror, pain, and delight.” Smith, echoing the thoughts of everyone else who has seriously considered these issues, points out the risk of close attachments:

“Isn’t it bad enough that the beloved, with whom you have experienced genuine joy, will eventually be lost to you? Why add to this nightmare the child, whose loss, if it ever happened, would mean nothing less than your total annihilation?” But this annihilation reflects the extraordinary value of such attachments; as the author Julian Barnes writes of grief, quoting a friend, “It hurts just as much as it is worth.”

By Paul Bloom

Source: Does Having Kids Make You Happy? – The Atlantic

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More Contents:

. “A review of the relationship among parenting practices, parenting styles, and adolescent school achievement” (PDF). Educational Psychology Review. 17

 “Parenting Style as a Moderator of Associations Between Maternal Disciplinary Strategies and Child Well-Being”

“The Influence of Parenting Style on Academic Achievement and Career Path”Day, Nicholas (10 April 2013). “Parental ethnotheories and how parents in America differ from parents everywhere else”. Slate. Retrieved 19 April 2013.[verification needed]

“The Terrible Twos Explained – Safe Kids (UK)”Kenneth R. Ginsburg. “The Importance of Play in Promoting Healthy Child Development and Maintaining Strong Parent-Child Bonds” (PDF). American Academy of Pediatrics. Archived from the origina

Crypto And Digital Asset Platform Bakkt Releases First Earnings, Lays Out Bold Partnership Strategy To Growth

Today Bakkt, a mobile wallet provider and digital asset platform founded in 2018 released its first earnings as a public company. The firm began trading on the New York Stock Exchange (NYSE) on October 18th following a SPAC merger with VPC Impact Acquisition Holdings (VIH).

Casual observers may find the results underwhelming. After all, the company, whose backers include NYSE parent firm Intercontinental Exchange, and which had completed a $300 million Series B round of funding in March 2020 brought in just $9.1 million in revenue this quarter.

Granted it is up 7% from Q2 and 38% year over year, and the company reports having 1.7 million transacting accounts, but the firm still had a net loss of $28.8 million. In contrast, cryptocurrency exchange Coinbase earned $1.2 billion in revenue and Square’s Cash App, which offers an easy way for users to buy bitcoin, brought in $1.87 billion in crypto revenue and $42 million in gross profit. PayPal, which offers a simple interface for users to buy and make purchases with Bitcoin, Ethereum, Litecoin, and Bitcoin cash opened 13.3 million accounts last quarter despite disappointing revenues.

However, according to Bakkt CEO Gavin Michael, who spoke exclusively to Forbes prior to the earnings release, this is all part of his plan for the company that has evolved from primarily being a bitcoin custodian and futures exchange to a much more comprehensive platform. Michael, who previously served as a technology executive for banks such as Citi, JPMorgan and Lloyds, intends for Bakkt to become the hub of an extensive ecosystem of business to business and consumer retail activity, with loyalty points and digital assets such as Bitcoin and Ethereum in the center of it all.

“We see businesses leveraging our platform to drive loyalty, and to deepen their customer relationships…they’re also able to innovate with crypto services and crypto rewards, appealing to a growing segment of digitally savvy customers.”The company’s merger also brought in a war chest of more than $480 million to use for future partnerships and acquisitions.

Also not reflected in these numbers is the steady stream of brand-name partnerships brought onto the platform, starting with Starbucks this past March and growing to include Choice Hotels, Fiserv, Finastra, Wells Fargo, United Airlines and Mastercard. These tie-ups are intended to do everything from helping community banks and credit union clients invest in crypto to allow merchants on the Mastercard network to offer crypto rewards to users.

“We enable these companies to really deliver consumer choice, [offer] convenience with alternate payment methods that allow consumers to spend the value of their digital assets across merchants and enable businesses to gain access to this increased spending power.”

The market responded particularly well to the MasterCard partnership, announced on October 25th. The firm’s stock rose 400% in a week. It has since surrendered over half of those gains, but it remains up over 160% since the merger was finalized.

In addition, the firm is looking to onboard more digital assets, though Michael says that given the platform’s comparatively conservative nature compared to traditional cryptocurrency exchanges,  “It’s fair to say that we are probably a platform that will have several, rather than several 100.” Regarding stablecoins and central bank digital currencies (CBDCs), which are increasingly becoming a focal point for regulators and entwined in global commerce and trading, Michael noted “We’re obviously watching closely what happens with stablecoins and CBDCs, because we’re an obvious choice, particularly with the partners that we’re working with…to really bring them to life.” Bakkt does not support any at this time.

With those integrations likely to wait until 2022 at the earliest, Q4 is shaping up to be an early test for Bakkt’s future. Unlike exchanges such as Coinbase, whose fortunes are highly dependent on the volatile nature of cryptocurrency prices to drive trading fees, Bakkt is more dependent upon retail spending to facilitate user growth and engagement on the platform. Q42020 was its most lucrative from a revenue standpoint in the company’s brief history, which Michael attributed in the interview to the seasonality of retail commercial activity, stating that he expects a similar trend again this year.

However, this trend could be upended, to some degree, by today’s challenging economic climate. Already retail establishments are reporting issues finding temporary staff for the holiday season, and October’s inflation numbers, which saw a 6.2% increase from a year ago, the highest jump in 31 years, may limit customer purchasing power over the next couple of months. More worrying is a growing belief among consumers and policymakers that inflation remains stickier than they would like, even if they still believe it is transitory.

That said, the silver lining could be that two industry segments not experiencing massive inflation are travel and lodging, which Bakkt supports through its partnerships with United Airlines and Choice Hotels. Airline fares actually fell 0.7% on the month and is down 4.6% year on year. The index for lodging away from home increased just 1.4%. As more of the world becomes vaccinated, travel restrictions loosen, and cross-border commerce recovers to pre-pandemic levels, Bakkt could see more engagement with its platform.

One final challenge will be convincing clients to part with their bitcoin and ethereum in exchange for goods and services. Both cryptocurrencies, which each hit new all-time highs on November 10th of $68,721 and $4,851 respectively, are seeing reductions in their circulating supply.

This trend is due to multiple factors, pre-eminent among them is the fear of someone finding in the future that they bought a $1000 cup of coffee in 2021 when they needed a quick boost. Of course, when asked about this challenge, Michael and the team are quick to point out that Bakkt is not necessarily a crypto platform, but a universal ecosystem for all digital assets.

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I am director of research for digital assets at Forbes. I was recently the Social Media/Copy Lead at Kraken, a cryptocurrency exchange based in the United States. Before joining Kraken I

Source: Crypto And Digital Asset Platform Bakkt Releases First Earnings, Lays Out Bold Partnership Strategy To Growth

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Related Contents:

 

What Is Financial Infidelity?

Being transparent about money matters is critical in partnerships and marriage. Here’s how to spot financial infidelity — and rectify it. When Melissa Houston and her husband first got married, they had a financial plan and laid out some joint money goals. “We knew what we were saving for and how we should spend money,” she says.

But as the years went by, Houston found herself emotionally spending, dropping $1K to $2K on weekend trips with her friends, as well as shelling out thousands on home renovations and random impulse buys. “I was using credit to cover my expenses and hid that from him,” she recalls. “As the boxes came in the mail, he asked me what was going on, and I assured him we had the money.”

Eventually, Houston told her husband the truth. She had been hiding her spending from him and had gotten the family into a financial hole. It put a giant strain on her marriage, and she is still working to gain back her husband’s trust. The duo has since gone back to their previous ways of openly discussing money. Houston is honest about her spending and runs big purchases by her partner instead of buying them behind his back.

What Houston and her husband experienced was financial infidelity. “Simply put, financial infidelity is when your spouse lies to you or keeps details about financial transactions and financial assets hidden from you,” says Sandra Radna, an attorney and the author of You’re Getting Divorced … Now What? You could be on the receiving end of financial infidelity, or you could be the one committing it, like Houston was. Either way, financial infidelity can be incredibly toxic to a marriage and is something that you should work to avoid at all costs.

What does financial infidelity look like?

Financial infidelity could be everything from declining to reveal some of your credit card purchases or other debts to your partner to stashing a portion of your paycheck into an account that your partner doesn’t know about, and making large purchases without consulting your significant other.

“We see financial infidelity occur in some really common ways, like not mentioning how much you spent on your credit card, or when one person makes a large purchase without telling their partner,” says Lauren Silbert, the vice president of personal finance with the Balance. This type of infidelity, she explains, can also occur when one person is keeping a secret account or hoarding cash or other valuables without the other person knowing.

“Another instance is the higher-earning spouse actually hiding how much money they make, keeping the majority of it for themselves, without their partner ever knowing it existed,” Silbert adds. It’s important to build a foundation of open communication and trust when it comes to dealing with financial infidelity.

The dangers of financial infidelity

Financial infidelity can break the trust in your marriage. “Arguably, the most important part of any relationship is trust,” explains Radna. She stresses that if one of the people in the relationship is not honest about what is happening in your joint financial lives, it’s a huge breach and is difficult to overcome.

“It begs the question ‘If you are lying about that, what else are you lying about?’” Radna says. And in her experience, for some couples the emotional aftermath of financial infidelity is insurmountable and can be a definite cause of divorce.

There can be significant financial repercussions as well, since, when you’re married, your partner’s debt becomes your debt. “It could also impact your credit score,” explains Ben Reynolds, the CEO and founder of Sure Dividend.

In order to avoid the repercussions of financial infidelity from occurring, it’s important to be open about your financial goals, purchases, and spending habits with your spouse. Here are some tips to keep financial infidelity at bay.

Be up front from the start

The way that you start your marriage can really set the tone for how you both talk about money. “I recommend that both parties leave everything on the table from the beginning,” says Jayden Doye, a certified public accountant and the owner of Prestige Accounting Solutions in Sandy Springs, Georgia. “They should lay out all of their assets and debts and discuss financial goals.

” Doye has seen too many couples enter into relationships with financial secrets, hiding student loans, debt, and spending habits from each other. Getting on the same page from the beginning and discussing your debt, making a plan for your spending, and working together on this can keep financial infidelity from ever occurring.

Victoria Lowell, founder of Empowered Worth and a certified divorce financial analyst and college finance counselor, agrees. “Couples need to start discussing money and finances very early on, and definitely before moving in together or marrying,” she says, noting that she often coaches clients with premarital financial counseling, which her clients find extremely beneficial.

Make money discussions routine

“Communication is the key,” says Ted Rossman, a senior industry analyst with Creditcards.com. “Most people have a hard time talking about money, but we need to get over that hurdle,” he adds. Rossman suggests scheduling regular money check-ins with your partner. “They don’t have to be long or formal. Perhaps once a month, go through upcoming bills and recent expenses and make sure you’re on track,” he says.

In addition to expenses, talk about your goals as well. This, says Rossman, can be really freeing and can reframe the discussion in a very positive way. “Do you want to buy a home in a couple years? Retire early? Send your kids to college? Identifying your money goals and values and working towards them together is so important and strengthens a relationship,” Rossman explains.

If you have been hiding things surrounding money from your partner, it’ll be easier to handle the sooner you tell the truth.

Start small

Money conversations may seem daunting at first, but it all starts with building trust and safety around money, says Silbert. She says to start with some “gentler money talks. For example, don’t try to make tough decisions right away. Instead, share about how your parents handled money. Talk about your experiences with financial institutions. Tell each other what item or experience has always represented true luxury in your mind.

And so on.” As the safety grows, then move on to harder conversations. These, explains Silbert, are usually the ones that have more opportunities for disagreement or discomfort. And when having these conversations, it’s important to approach them with an open mind and to create a judgment-free zone.

Come clean if you’ve been hiding things from your partner

The longer you conceal money and spending habits from your partner, the more damage you are likely to cause to your relationship and your finances. To heal from financial infidelity, the offending partner needs to come forward. Carrie Krawiec, a licensed marriage and family therapist at Birmingham Maple Clinic in Troy, Michigan, shares her three steps for admitting to financial infidelity:

  1. Sincerely apologize.
  2. Take responsibility without excuses.
  3. Take all steps and measures to make sure the behavior doesn’t repeat itself.

“When the first three are done, there should be acknowledgment by the wounded party that one to three have been sufficiently met,” she explains.

Bring in a third party

It can be beneficial to schedule meetings with a financial adviser who can help you draw up money goals as a couple and get you thinking about a long-term financial strategy. A couple’s counselor can also assist partners with working through any conflicts that they may be having about everyday spending.

And it’s especially important to get help when you’re working through a bout of financial infidelity in your marriage, as this can be hard to navigate alone. “I strongly suggest that couples who are facing this seek counseling,” suggests Lowell, who notes that a marriage therapist or financial coach can help partners open up the dialogue to discuss their philosophy about money, debt, and so forth.

Source: What Is Financial Infidelity?

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Related Contents:

Financial Infidelity: The Things we Buy, the Lies we Tell

Financial Infidelity is Rampant

Financial Infidelity’ is Pretty Common

Your Cheatin’ Wallet

How Infidelity Causes Post Traumatic Stress Disorder

How Infidelity Causes Post Traumatic Stress Disorder | Psychology Today

Healing From Infidelity

Tokenized Apple, Tesla And Coinbase? Why Binance Is Bowing Out.

Binance Chief Executive Officer Zhao Changpeng Interview

Tokenized stocks, or digital assets pegged to the price of company shares, are no longer available for purchase on Binance.com. Offerings had included Tesla, Apple, and Coinbase shares, which Binance claims were fully backed through shares held by its partner, German-based investment firm CM-Equity AG.

Support for stock tokens was first made available on Binance.com in April, 2021, which was enabled through a partnership with Digital Assets AG, a firm focused on issuing tokenized financial products.

“Today, we are announcing that we will be winding down support for stock tokens on Binance.com to shift our commercial focus to other product offerings,” the announcement reads.

Although the exact reason for the about-face is unclear, Binance’s reversal on tokenized stocks comes as financial regulators around the world are putting pressure on the firm. Officials in Germany, Thailand, Japan, Canada, and the United Kingdom have all issued warnings about the exchange over recent months, the firm has been dropped by the payments processor Clear Junction, and certain banking relationships in Europe and around the world are coming into question.

More broadly, it raises doubts about Binance’s hyper growth strategy of rapidly launching new products around the world such as debit cards and derivatives products.

Users currently holding stock tokens have 90 days to sell their shares. Clients in the European Economic Area and Switzerland have the option to transfer their holdings to a new digital asset platform from CM-Equity AG. After October 14, 2021 they will not be able to manually sell or close their positions on the Binance site.

Follow me on Twitter or LinkedIn. Check out my website.

Source: Tokenized Apple, Tesla And Coinbase? Why Binance Is Bowing Out.

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Critics:

Binance will list MicroStrategy, Microsoft and Apple, providing Binance users with exposure via the tokenization of equities. The tokens are expected to be denominated in the exchange’s stablecoin, BUSD.

The move means Binance users will be able to qualify for economic returns on the underlying shares, which will include potential dividends. The tokens also allow Binance customers to purchase as little as one-hundredth of a regular stock using BUSD.

Binance’s stock tokens are tokenized equities that can be traded on traditional stock exchanges. Each tokenized stock represents one ordinary share of the stock and is backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany, according to the post.

Two stock tokens have begun trading on Binance including electric vehicle maker Tesla and cryptocurrency exchange Coinbase. Those listings are already ruffling the feathers of regulators who say the exchange has not acquired the necessary license to begin marketing equities to the public.

Cryptocurrency exchange Binance is allowing its users to buy fractions of companies’ shares with a new tokenized stock trading service, starting with Tesla.

  • The crypto exchange announced Monday the launch of Binance Stock Tokens, zero-commission digital tokens that qualify holders for returns including dividends.
  • As of 1:35 p.m. UTC (9:35 a.m. ET) April 12, users will be able to buy fractions of actual Tesla shares, which trade at $677 a share at the time of writing.
  • Users will be able to purchase as little as one-hundredth of a Tesla share, with prices settled in Binance USD (BUSD).
  • The exchange’s native crypto Binance Coin (BNB) has surged more than 25% in the last 24 hours, reaching an all-time high of $637.44. It is priced at $590.51 at press time. It’s not immediately clear what is driving the price of the coin.
  • It’s not the first tokenized stock play in crypto land: Terra Labs’ Mirror Protocol went live in December.
  • But where Mirror uses synthetic stocks (or tokenized representations of actual equities), the Binance product is “backed by a depository portfolio of underlying securities” managed by an investment firm in Germany.

See also: Binance Faces CFTC Probe Over US Customers Trading Derivatives: Report

Related Stories

How Investing in Strategic Partnerships Can Help Grow Your Business

How Investing in Strategic Partnerships Can Help Grow Your Business

The best entrepreneurs understand the power of people. Whether thinking about accessible healthcare or, more broadly, startup success, collaboration and partnerships have always been vital, even before the pandemic strengthened the need for a collective approach.

Of course, for entrepreneurs looking to scale their business, cash is a critical piece of the puzzle. For obvious reasons, access to capital enables a business to grow, whether that’s investing in research and development (R&D), expanding overseas, or hiring top talent.

But capital shouldn’t be treated as a silver bullet. Instead, founders should turn their attention toward creating strong, strategic partnerships to drive business growth. Working with other established organisations builds credibility, allowing businesses to make further connections and expand their operations.

Entrepreneurs, though, should learn exactly how to unlock beneficial relationships that will ultimately set them up for long-term victory. Partnerships must be win-win and goals aligned so that everyone comes out as beneficiaries.

Why connections matter.

When executed wisely, strategic partnerships can foster business growth. With the potential to form a critical part of any growing business, these partnerships benefit startups and corporates alike. For large corporations, startups and scaleups can fuel innovation; for early-stage founders, big companies can enable fresh revenue, scaling possibilities and credibility.

With established partners come established networks. Existing knowledge, suppliers and customers can make selling products on a larger scale much easier to achieve. This empowers startups to scale quickly, with that revenue used to reinvest in operations and innovation, fuelling further growth and making it easier to establish new business relationships with a wider pool of organisations.

What’s also important, particularly if operating in a crowded space such as healthcare, is the potential for impact. Healthcare solutions – rightly or wrongly – are often judged by the number of patients using them. So, establishing key strategic partnerships – as we’ve done with Microsoft, Allianz and Portuguese healthcare provider Médis – provides an avenue to millions of patients.

Infermedica experimented with different business models, but eventually settled on a B2B strategy over B2C as we had the potential to reach more patients through a partnership network. This accelerated on our goal to bring more accessible healthcare to all. Strategic partnerships enable startups to quickly build credibility and cut through loud crowded markets.

Investor partnerships can play a role as well. Relationships don’t need to simply need to be between providers, but investors can bring knowledge, connections and consultancy which can help startups to overcome growing challenges and open doors that may otherwise remain closed until certain milestones around size, revenue and customers have been reached. What’s key is ensuring both sides remain committed to moving forward together.

How to unlock the opportunity.

But what’s the best way to go about creating these relationships? For founders, the first step to achieving this is to remember that although partnerships are sealed between companies, they’re created by people and that human connection has to be built first. Talk to the potential partner to understand what they are truly trying to achieve and how a partnership could help them solve it.

Similarly, founders must understand their own goals and what they need from any relationship to ensure they keep progressing towards it. When discussions are open and the people are looked after, great relationships are forged.

Developing a partner program at an early stage: creating a network of trusted resellers and innovative partners also allows entrepreneurs to explore opportunities in their immediate area and beyond. Indeed, European founders shouldn’t simply look within their own country or continent for partnerships, by looking further afield they open themselves up to new ways of thinking and opportunities.

Partner programs and ecosystems establish a feedback community, each organization provides feedback which improves each other’s offerings, leading to greater growth and credibility for all. This also drives thoughts around integration, how compatible one offering is with another to ensure it truly adds value in a real-world environment. Collaboration with partners enables entrepreneurs to see how their product fits into the bigger picture which fuels wider innovation.

For example, Infermedica’s partner program enables organizations from all aspects of healthcare to collaborate with us and access our AI technology, enhancing and diversifying services which offer better end-user outcomes. Of course, there is still some way to go and things will never stop evolving. The top SaaS companies have on average around 350 integrations as they understand all of the potential engagement points and are establishing ecosystems that reflect them. The key takeaway: when creating partner ecosystems, always keep in mind how an end-user could potentially interact with your offering.

Take your time.

As in life, building a long-last relationship takes a lot of time and effort. So, while it can be tempting to rush into an exciting partnership or program, it’s vital to take your time to build trust and establish clear boundaries. Drawing on our own experience, it took more than a year to establish partnerships with Microsoft and Allianz, and it’s an ongoing process of building mutual trust and finding new ways to collaborate.

Remember that there should be no A and B side in partnerships. Each party brings their own benefits to the table. Combining knowledge and resources makes the relationship greater than the sum of its parts, delivering greater value to customers, industry and economy.

At all times, specificity is key to success. Be sure that the partnership is truly feeding into your overall strategy and that you have all the necessary resources to support you on your journey. Plan it well and take your time. It’s a long-term strategy that requires patience, commitment and perseverance. Rome was not built in a day, but the foundations of a long lasting relationship could start tomorrow.

Keep your goals in mind and ensure you’re going into every conversation with completely open eyes because when you find those strategic connections that just work, the opportunity for growth is truly great.

By: Tomasz Domino / Chief Operating Officer, Infermedica

Source: How Investing in Strategic Partnerships Can Help Grow Your Business

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Critics:

A strategic partnership (also see strategic alliance) is a relationship between two commercial enterprises, usually formalized by one or more business contracts. A strategic partnership will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic partnerships can take on various forms from shake hand agreements, contractual cooperation’s all the way to equity alliances, either the formation of a joint venture or cross-holdings in each other.

Typically, two companies form a strategic partnership when each possesses one or more business assets or have expertise that will help the other by enhancing their businesses. This can also mean, that one firm is helping the other firm to expand their market to other marketplaces, by helping with some expertise.

According to Cohen and Levinthal a considerable in-house expertise which complements the technology activities of its partner is a necessary condition for a successful exploitation of knowledge and technological capabilities outside their boundaries. Strategic partnerships can develop in outsourcing relationships where the parties desire to achieve long-term “win-win” benefits and innovation based on mutually desired outcomes.

No matter if a business contract was signed, between the two parties, or not, a trust-based relationship between the partners is indispensable. One common strategic partnership involves one company providing engineering, manufacturing or product development services, partnering with a smaller, entrepreneurial firm or inventor to create a specialized new product. Typically, the larger firm supplies capital, and the necessary product development, marketing, manufacturing, and distribution capabilities, while the smaller firm supplies specialized technical or creative expertise.

References

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