Did you know a partnership can help your business in multiple ways?
If you don’t have enough startup capital, for instance, partnering up with someone or an organization can help you raise the funds. If you have an existing business and you’re looking to break into another industry, you can partner up with a business that’s already established in that industry.
Ready to partner up?
While the benefits of partnerships are evident, looking for business partners can be challenging. Sometimes you might fail to find a suitable partner.
Worry not, though. We are here to help.
Continue reading to learn about the do’s and don’t of finding business partners.
DO Know Your Needs
You shouldn’t partner up just because partnerships exist in business. You need a partner because they can help you achieve specific goals.
To do this, you must have a good understanding of your needs. Which gap do you want your ideal partner to fill?
When you know your needs, it’s far easier to find a dream partner. For instance, if your need is capital injection, you’ll know that you need a partner who has the financial muscle to fill your capital needs.
You should also know your own values. This will help you get a partner whose values match yours.
DO Know Where to Find an Ideal Partner
The best partnerships are borne out of close relationships. Although there are instance when you might need to partner with someone who’s new to you, most of the time your ideal partner will be someone you already know.
Look at your past business relationships. Do you have clients who could fit the bill? Even a family member can make a good business partner, as long as they offer what you need and you share similar values.
Once you’ve identified a potential business partner, approach them and establish whether they’re open to forming a partnership with you. If they are, bingo. Initiate meetings and lay down your intentions.
When everything is agreed up, draw up a letter of intent. This is a legal document, so ensure you know how to go about it. Have a look at this letter of intent example.
DON’T Settle for Unequal Commitment
When you’re desperate for a business partner, it can be tempting to fall for anyone who offers what you need. Big mistake! You should only partner up with someone who’s worth it; someone who will bring equal substance to the table.
In other words, don’t settle for unequal commitment.
DON’T Partner Up without a Legal Agreement
In a partnership, every party is in it to benefit in some ways. And in such relationships, things can go wrong if there isn’t a clear definition of each party’s roles and responsibilities.
This is why you should never enter into a partnership without a legal agreement backing it up. Don’t fall for gentlemen’s agreements, verbal commitments, or handshakes.
Know How to Go About Looking for Business Partners
In business, sometimes partnering up is the right thing to do. However, the success of any business partnership will depend on the quality of the partners. With this guide on the dos and dont’s of looking for business partners, you’re now in a better position to find an ideal partner.
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