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4 things to know before getting into a business partnership

4 things to know before getting into a business partnership

Entrepreneurship

GlobalLinker Staff

GlobalLinker Staff

28 Feb 2020, 10:30 — 4 min read

The disruption brought in by digital technologies is expected to accelerate in the coming years. Small business owners can either take advantage of this opportunity to transform their business or lag behind in the race. For those who choose the former, they can either do this on their own or seek strategic partnerships.


Strategic partnerships are defined as collaborative efforts between two parties working together for a mutual benefit. These can take many forms but usually, these relationships are built on having complementary offerings.
 

Building this ecosystem and learning how to collaborate with other businesses and professionals alike unlocks new opportunities and areas for growth. Sounds exciting? Or you might have questions popping up such as: Where can I find a partner? How do I know if they are the right match? Do I really need one? Do not fret, here are some tips:

Also read: It's a match: How to find the right business partner


1. Conduct a self-check

It is important to identify your business’ needs first. You can ask the following questions to yourself:

  • Does my business need a partner at this stage?
  • What can my business offer that is value adding?
  • What are my weaknesses? Are these issues that can be addressed by another party?
  • How long do I see this partnership lasting, short or long term?


You need to understand your goals as this will be helpful in communicating your plan with your prospects.


2. Tap your network

This is where the power of networking comes into play. Look into your local and digital network. Look for those who run complementary businesses, even those in different industries. Who knows what idea you might come up with!

Also read: 5 easy ways to grow your business network on GlobalLinker
 

3. Do your homework

Once you have found a potential partner, it is best to be direct with your objectives while noting key points on how you both can benefit. It is also important to be upfront with your limitations. If you’re looking for a long-term business partner, you should also evaluate and gauge if you share the same vision. When you have a different vision, this can bring trouble to your business as both of you have a different direction towards the future of your venture. Being aligned with your business partner can save you from headaches in the long run!

 

Aligning your business with the right partners will allow you to grow not only your business, but also your network - unlocking new and great opportunities.


4. Examine your options

All this sounds exciting but before locking into a partnership, make sure that the dynamics are right for both of you. How will you know? Consider answering the following questions:

  • Is there open communication between management and employees?
  • Do we share the same business objectives and values?
  • Does it feel that one is working much harder than the other to achieve targets? 
     

Finding the right partners and reaching an agreement may take some time but it will surely be worth it. Aligning your business with partners, complementary businesses and even professionals will definitely allow you to grow not only your business, but also your network - unlocking new and great opportunities. 

 

Image source: shutterstock.com

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