As a small business owner or business development executive there are several things that need to be remembered when building a new joint venture business partnership. The following is a list of items to realize when building business partnerships that will ensure that your business finds the right partners and mutually beneficial business transactions that maximize opportunities and results in growing your company. However, all their business partnerships are positive and negative, but as business executives, it is very important that you understand the risks and areas to focus on reducing small problems from the agreement killer.
Top 5 for when building business partnerships
1. Research – almost impossible to build a successful business partnership without doing a large number of market research and analyzing potential partner businesses. Failing to understand adequately for prospective partners can only cause problems in the future. This can be something that is as easy as not having access to the right client base or just being a culturally incompatibility. Therefore it is absolutely necessary to spend time and resources to examine complete opportunities.
2. Check the customer base – before completing the partnership that promises to provide your brand or product to a new customer, request customer demographic data and information on some of the main customers that can be referenced to cross.
3. Meet directly – In-people meetings with executive management of potential business partners are always better. While most communication can occur in traditional forms of email and phone calls, the best is to request a direct meeting from the start in the process when determining whether a business is a good candidate for partnerships.
4. Develop performance-based incentives – depending on the nature of the business partnership that you make, compensation can come in various forms. The package that includes stock income and / or bonuses will eventually reap more prizes compared to partnerships that do not include performance-based incentives to foster partnerships. Be sure to enter a method for compensation to certain team members because some will be able to sell more than their peers. You might also want to offer bonus incentives to the overall sales team for their combined efforts.
5. Lease experts to eliminate errors – small business owners need support in carrying out successful partnerships and maintaining focus on the customer and the development of existing products. Supporting outside support will ensure the partnership is built correctly. Hire a lawyer who can provide a partnership template that can be used to compile an agreement between the two companies. Using templates will reduce legal costs when forming a future partnership just by having a lawyer complete and sign any adjustments to the template with each new partner.
You may also want to find a business consultant who specializes in the marketing partnership of joint ventures. These consultants will save you valuable time by identifying new partners and making first contact. Hire the right consultant and you can get your feet at the door with your dream business partner and have the skills you want to make the concept of a partnership agreement that will ensure profitable business relationships.