If you are running a business, then you know that you’ll one day need to partner with another business. A business partnership is not as simple as it sounds; this is because the process is complicated and confusing to some. The business partnership process needs time, thinking, planning, and engagement with commercial litigation lawyers. Once these are in order, you consider the following factors so that you can make the partnership a business growth strategy.
Know your partners
If your business is booming, then you are likely to get a flock of potential investors camping by your business. Among these investors, there are those with the potential to precipitate your business to success. At the same time, there are those investors that will take your business to the grave within weeks. To be on the safe side, you should get to know your partners on a personal level and know what their repo is like. Dig deep into their CV, look them up online, and their past experiences with other business. If they are legit, then you are free to transact with them, if not avoid them at all costs.
The best way to get a good piece of the pie in any partnership is by negotiating terms. However, forging a good business partnership is full of back and forth negotiations of what both parties want. For a partnership to happen, both sides should negotiate terms frequently before pen is put to paper. To make the most out of the partnership, you should research how much it costs to partner with others. You should be ruthless and don’t be reasonable or easily persuaded. Nevertheless, you should know the limit not to spook your potential partner.
Keep your core values aligned
Most businesses are rampant at dumping their core values when merging with other businesses. Once you decide to partner with someone, then the business is likely to evolve. However, this does not mean that you should abandon your core values such as digital marketing and adopt new once. As such, this has led to the collapse of several businesses due to poor customer satisfaction. So, to avoid this business should partner with investors sharing similar values to the business. Also, businesses are urged to cooperate with their previous values slowly.
Aim for a win-win partnership
A good business is likely to grow if the collaboration is a win-win for both parties. However, the excitement of outsourcing a new partner can be overwhelming for many entrepreneurs. This may lead you to pen the deal before you think it through. As such, this will lead to regrets and misunderstandings that will end up destroying your business. So, to ensure that your partnership is a win-win, take time to understand the agreement, look at what’s beyond the table. Ensure you are comfortable with the terms before agreeing with your new partner.
Communicate frequently with your partner
Constant engaging communication is just as stimulating as coffee. If the communication between you and your partner, then your business is set for success. Otherwise, then your business is set for failure. Communication between partners will help you avoid business disputes between vendors and VARS. However, this is usually forgotten by both sides of the aisle, thus leading to contract termination and court suits.
The bottom line
As seen above, a good strategic business partner might be the tipping point between success and failure. If the partnership is good, planned, and thought, then the business is likely to prosper. However, if the partnership is rushed and not detailed, then the business is likely to face liabilities and eventually collapse. So, to avoid such odd moments, businesses should strategize well before partnering with other investors. On the same note, you should screen your potential partners and detail any agreements to avoid future clashes.
About the Author
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. He currently writes for Streeterlaw. an Australian law firm where you can find commercial lawyers in Sydney for your case. His interests also include content marketing and self-development. Say hi to Patrick on Twitter @patrickwattpat.