In the business world, at one point or the other, it becomes necessary for a small business or entrepreneurial venture to take on a partnership or collaborate either to sustain itself or for further growth. A partnership is a tie up where both sides see eye-to-eye and have to bond in a manner which is mutually beneficial. Here are some tips to master the art of partnering.
Get into a partnership to increase sales or decrease costs
Considering all aspects, the best reason to enter a partnership is to increase sales or to decrease costs. In this case the financial projections have to be recalculated without which the partnership does not stand much of chance. There has to be a firm collaboration where everything is transparent and credible to both partners and the partnership should be quantified. If this rule is not adhered to then the partnership is as good as non-existent.
Specify your goals and objectives
If you have entered into the partnership with the specific goal of increasing revenues, the execution of the partnership will depend on setting deliverables and objectives. These would comprise generating the additional revenue and aiming for lower costs, penetration of new markets and introducing new products and services. The only way to know if a partnership is progressing in the right direction is to find answers to quantifiable questions like – how much increase in sales was recorded since the tine both websites were linked.
Make sure that the collaboration is liked by all employees
It is a common assumption that if the top rung of the management is satisfied with the collaboration, it would be key to the success of the partnership. That assumption is totally wrong. It is very important that the middle order and the bottom orders of both organizations like and accept the partnership. All said and done, it is these levels that would be working towards the success and implementation of the partnerships. The best partnerships are those where the middle and the bottom order work together and strengthen a relationship that does not involve top management until the work is done.
Devise win-win arrangements and deals
It is common knowledge that no two companies which are equal in size will ever enter into a partnership. One company is usually smaller. The more powerful company or partner will try to extricate as much work as possible, while the weaker party will comply to work, albeit, begrudgingly and accepts any deals, and will try to get whatever it can. If a partnership finds itself in such a situation it will not last long and. It is only mutually beneficial results that can keep the partnership intact.
Make sure to put in a clause to opt out
When going ahead with a partnership, both companies will make efforts to keep the relationship intact if they know that it can be terminated easily. They will work harder to make it successful. If there is no mutual understanding and desire to work harmoniously together, and all that binds them is a legal document, that partnership may not last long.
Go in for proper legislation
When you and your partner have determined the terms and conditions of the deal, you will then draft an agreement. This usually takes place after coming to an understanding. A lawyer should be appointed to legalize the deal and the terms and conditions should be amenable to both the partners. Partnering is a skill and an art – master that art to make your future growth possible and profitable.
The article discusses about the need for a small business or entrepreneurial venture to take on a partnership or collaborate either to sustain itself or for further growth. A partnership is a tie-up where both sides see eye-to-eye and have to bond in a manner which is mutually beneficial. Here are some tips to master the art of partnering.