You’re in business to do great business. Entrepreneurs look for ways to do better business, sometimes seeking partners. The two-heads-is-better proverb holds true; two people can benefit from taking part in one business venture.
The world has experienced the success of a number of partnerships, Levi and Strauss, Barnes and Noble, and Abercrombie and Fitch are examples.
However, the world has also experienced, but not told, the story of a number of unsuccessful partnerships. There are always things to consider regarding any business venture. What should a businessperson think about before approaching a partnership?
Competitor or Compliment?
A partnership aligns two business personalities. While the common goal is success, ensure you are not aligning with a competitor. For instance, two graphic designers can do twice the amount of work, but essentially each offers the same skill set. Rather, choose a partner who has a complementary skill set, not a similar one.
For instance, a graphic designer and content writer have complementary rather than similar skill sets; the target markets may be similar, yet the provided services are different. The partnership can service one client in numerous ways rather than one.
Ensure you’re aligning your business with someone who can help you grow and vice versa, expanding one another’s skill sets and offered services.
Shared Views
Do you and the potential partner share the same business goals and views? Conflicts of interest can quickly pose problems to a young partnership. One’s philosophies influence short and long-term business decisions.
What are your views on expansion? Do you want to be aggressive, potentially sacrificing quality? Would you rather grow slowly, ensuring you’re delivering quality to each consumer rather than focus on money generation? Conflicting views could manifest on a number of occasions, creating anxieties related to crucial business decisions.
Ensure you and your partner share the same views regarding fundamental goals and direction.
Contract Workers as Part-time Partners
Outsourcing is a viable option for a number of practitioners. Per-project or contract workers specialize in areas of practice, such as graphic design. It’s a part-time partnership, but could be an ongoing one.
Outsourcing allows a businessperson to attend to client needs while focusing energy and time on the core business as well. Versatility is another advantage of outsourcing. An owner can outsource for some projects, while keeping work in-house for others. The elasticity of outsourcing makes it convenient for a number of operations.
Think of yourself as a quarterback with contract workers as offensive players. Depending on the given situation, you may decide outsourcing to a specialist is the best play. It’s not a permanent partnership, but it works well temporarily, benefitting both parties.
Establish Communicative Means
A partnership in the modern-day business world does not necessitate a union of locations; available resources allow partners to live in separate cities, states, and continents. Effective communication relies on stability (planning three meetings per week) and resources (using digital audio/video tools). Ensure both parties have the discipline and tools to establish and facilitate ongoing communication.
A myriad of communicative solutions exist, such as Skype, allowing for better lines of communication. Skype allows one to see and hear the other person, allowing partners to read one another’s body language and facial expressions as well as listen to tone and words, improving relations and understanding.
Consider Affiliates
Partnerships come in varieties. An affiliate partner may not work with you, or even provide the same kind of product/service; but, an overlapping market affords business opportunity (a sports bar and a local sports clothier begin a partnership).
The affiliate partnership business model can be scaled. If you have a website, you could advertise your services/products on other websites, offering those webmasters commissions based on sales.
