How to Get a Partnership Deal for Your Business
A partnership deal can take your business to the next level. No business is too new or too small to start considering potential partnerships.
To find out how other business owners navigate partnership deals, we asked successful entrepreneurs for their tips. Here’s what they had to say:
1. Be Transparent
Successful partnerships happen when both parties are fully transparent. Transparency leads to mutual trust, increasing confidence in working together and growing each other’s businesses. – Alex Frias, Track Marketing Group
2. Make It Clear That You’re There to Help
Make it clear to your potential partner that you are there to help and can execute. – Trace Cohen, Launch.it
3. Enact a Vested Value Clause
To protect each party, enact a clause suggesting a “vested value”. The benefit gained by the more active party strengthens if the actions aren’t reciprocated. Use an attorney to arrange this. – Logan Lenz, Endagon
4. Communicate Respectfully
Emphasize the importance of respectful communication. Open lines of communication allow employees and leaders to adapt to a new partnership smoothly. – Jay Wu, A Forever Recovery
5. Create a Mutually Beneficial Partnership
Focus on long-term value. Set the stage from the start, being fully transparent about your desire to create a mutually beneficial partnership. – Kristopher Jones, ReferLocal.com
6. Make Sure You Have a Way Out
Include a clause in your agreement allowing you to dissolve the partnership if necessary. Write down what happens to all assets to avoid potential problems. – Andrew Saladino, Just Bath Vanities
7. Do a Transparent Pilot Program
Incentivize both sides by doing a completely transparent pilot program. Share all metrics and be honest about what went well and what could be improved. This honesty lays the foundation for a great partnership. – Chuck Cohn, Varsity Tutors
8. Work Toward a Good Outcome for all Parties
Negotiate a deal where everyone feels it was a great outcome. This leads to more happy customers, referrals, positive reviews, and good juju. – Matt Ehrlichman, Porch
9. Do Business With Trustworthy People
Do business with people you trust and like. Ensure there is a clear benefit financially, strategically, or perception-wise. Ask yourself if the partnership truly benefits both parties. – Adam DeGraide, Astonish
10. Answer the Hard Questions
Answer hard questions and define parameters in a well-explained document. This avoids confusion about roles and outcomes. It also brings potential contingencies to light. – Benish Shah, Vicaire NY
11. Have a Strong and Clear Deadlock Provision
Include a clear provision in the contract for deadlock on a key matter. Both sides should know what happens when they cannot agree on something fundamental. – Peter Minton, Minton Law Group, P.C.
12. Focus on the Spirit
If both parties understand and acknowledge the spirit of the deal, the details fall into place easily. This also makes it easier to unwind the deal if necessary. – David Cohen, Round Table Companies
13. Get Clear Information Flow
Create a detailed plan for how information will be shared and who will be responsible for communicating specific elements. This helps alleviate stress and potential roadblocks caused by communication problems. – Martina Welke, Zealyst.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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