Some businesses established recently, often find that they need a tugboat in order to get them out of the harbour and out into the big open sea. If the sea is the world of opportunity, then that tugboat is a partner who is willing to help you get to where you need to be. This is why although many small businesses may not want to sell themselves to the highest bidder, but they may want another entity similar to their’s to join them on the journey.
A temporary or even long-term partnership is great for businesses that need each other or simply want to put their rivalry to one side to bolster one another. The latter reason might be because the global economy is spiraling downward or both businesses can spot a sudden spike or interest and buying habits in consumers. However, when you’re entering into a partnership, there are a few crucial things you should remember.
Know exactly what you want
Aside from the legalities, the important question is what it is you wish to gain from this partnership. It’s wise not to get involved with a business that is not performing well, and you can see so by their quarterly financial reports. A business that is either on par or slightly more successful than you are the prime candidate.
Do you want to essentially climb on each other’s backs to hoist your flag higher in the market or industry you’re both in? Small businesses that team together to take on a shared opposition, such as a rival but the much larger brand, will find the fight much easier. There may be seasonal shifts, and perhaps you want to have an easier time for periodic sales by sharing consumers.
Whatever your motive is, have a clear idea of what you want before you head into any agreement.
Do your research
Small businesses often have investors who see entrepreneurs and their ideas as the next big thing. It’s a slippery game of snakes and ladders if you don’t properly check who is a holder in the company. What if the business owner, isn’t the only one who has a say because the investor has bought a chunk of the company?
To make sure you’re not heading into an agreement without the full list of other partners beside yourself having a position of authority in terms of decision-making, entrust a detective agency. With the skills and expertise of such an organisation, they can check the background of any business and pull up some vital details.
They can find hidden partners, as in some cases they are may not be permissible even to be mentioned in a negotiation. This is why it’s beneficial to know the underbelly of the business you’re heading into a deal with before you sit around the table.
Having your wits about you when looking to partner with another business is most important before you start wording the agreement contract. Knowing who might be behind any decisions the other party makes is crucial to not having unpleasant surprises flung your way. Equally, you’ve got to really lay down the foundational reasons in what you want from the partnership.