No matter how big or small your business is, whether it is brand new or well-established – a good partnership deal can help to take your business to the next level. Forming a partnership with another company can open your company up to new financial resources, new connections, or vital skills that you currently lack. However, going into partnership with another company can also have its drawbacks. For example the decision-making process can take longer, and if you don’t see eye-to-eye on something it can cause conflict.
With careful negations and good planning, the disadvantages of partnering with another business can be negated, paving the way for a successful and fruitful partnership that benefits both parties. Here are our top tips for forging a successful business deal in any industry…
In any business partnership it is vital that both parties are clear and transparent from the start. Make it clear to your potential new business partner that you are there to help them, as much as you are there to help yourself, and that you can deliver what you promise.
Being up-front and transparent with one another helps to build mutual trust and increases your confidence in working together and growing your respective businesses together.
One of the main reasons why any relationship – either business or personal – falls apart is due to problems with communication. Forming a new business partnership and adjusting to new ways of doing things can be stressful for all involved.
It’s important that everyone feels that they have an open line to speak freely about their concerns.
One way in which to do this is to come up with a communication plan right from the outset, clearly detailing how information will be shared, who is responsible for communicating certain elements, and which communication channels will be used, i.e. email, conference calls etc.
Create a mutually beneficial partnership
Going into partnership with a well-established business might help your start-up company to get off the ground and really go places; but what’s in it for them? Why should that large company with an established reputation and client base help you out?
Before you go into partnership with someone it’s important that you have something worthwhile to bring to the table too.
Perhaps you have designed some software that would really benefit them, or you’ve revolutionised a process that will save them time and money – whatever it is, you need to be confident in its ability to help you create a mutually beneficial partnership with the other party.
Make life easier for the other party
If you are a small business you may find that that is part of your appeal when entering into a partnership with a larger company. Smaller business are often much easier to deal with, which may attract larger businesses to you.
The directors of a well-established financial company don’t want to waste time battling with larger egos than theirs when it comes to business deals. As a small start-up company they know you are willing to learn from them and let them help you to grow.
So if you’ve not got as much to bring to the table then make sure that being easy to deal with is one of your major selling points in the business deal.
Mark the occasion properly
Securing a new business deal is no mean feat. There are usually months, if not years, of planning and preparation that go into the deal, along with endless negotiations, trials, and agreements.
Then there’s all the legal paperwork that needs to be drawn up before you can finally begin working together on your mutually beneficial partnership.
When you partnership is made official it’s a good idea to mark the occasion with a tombstone or deal toy that can be proudly displayed in your business premises for staff and visitors to see.
Make sure you have an exit strategy
As with any partnership or relationship, sometimes things just don’t work out. When drawing up the legal documents for your business deal make sure you include a clause that will allow you to dissolve the partnership where necessary.
It doesn’t mean that you’re setting out on the venture with the expectation that it will fail; but it does mean that all eventualities are covered as the financial world is not always as stable as you’d like it to be and who knows what will happen in the future.
It’s important that you explicitly record exactly what will happen to all assets in the event of dissolution of the partnership.