Business partnerships have become the norm in the modern entrepreneurial world, and as much as you would love to rise to entrepreneurial superstardom all on your own, chances are that sooner or later you will need to team up with a noteworthy ally to reach new levels of success. Needless to say, partnering up with another company or an individual is not a task to be taken lightly.
Numerous factors will play their vital parts in shaping your final decision, and creating a mutually-beneficial partnership that will allow both entities to prosper. So, let’s take a look at the five considerations for building a strong business partnership.
Make sure you and your partner click
Professionally, emotionally, it doesn’t matter, the fact remains that partnerships are difficult to uphold. Much like in your personal life, there is a need to base your partnerships on honesty, clear communication, and mutual values that tie your and your partner’s company together.
There is a need for partners to click. In the business world, this means that a company with a set of values that differ from their partner’s is bound to cross swords with them at one point or another – which is why your goals and aspirations need to be defined through shared core beliefs. Partner with someone who is honest and trustworthy, and you will ensure a thriving future.
Financial stability is imperative on both ends
Finance is the lifeblood of every business. Quite simple, you cannot allow yourself to get in bed with a new business partner if you’re not completely aware of their true financial situation – because if your partner fails, chances are that you will go down with them.
Instead, make sure you exchange financial reports in the months leading up to the handshake, so that your experts can run a cost-benefit analysis that will solidify your bond.
Pamper your new partner professionally
Courteous, friendly conduct is always appreciated, especially among future business partners looking to establish long-term success in the industry. This doesn’t only mean that you will be going to their office to discuss your future partnership, but also that your potential partner will frequently be a guest in your own headquarters.
Make sure you pull out all the stops for the partner you want to close. An excellent example led by Australian entrepreneurs is hiring chauffeurs in Sydney and other cities in order to provide a smooth ride for the guest and ensure they arrive on time, and in style. It’s a small touch that can make all the difference for the future of your business.
Complement each other’s strengths
Matching your strengths with the strengths of your potential partner is tricky business. Oftentimes, business leaders will make strategic partnerships based on the shared strong points, rather than complementary ones. This doesn’t add any real value to your business, which is why your partner needs to be someone who can help you grow, and vice-versa.
To that end, look for complementary strengths their company has, and how they can help you achieve your long-term goals. This also means that the other side will be looking into your assets as well, so make sure your team is able to offer true value to your new partner.
Sign on the dotted line and seal the deal
Last but not least, there is the small matter of signing on the dotted line. But before you do, you need to handle all legal issues and make sure that the business partnership agreement is fair, comprehensive, and transparent. This will help you define profit and expenditure management, and keep both parties satisfied in the long run.
Amazing brands and multi-million-dollar businesses are built on strategic partnerships, and as an entrepreneur with dreams of dominating the competitive industry, you should find a business partner to take your company to the next level. Let this guide help you make the right choice.