A Case for Business Partnership
I’m writing this review because I think there’s a lesson to be learned in “Business Partners Can Enrich or Ditch a Start-Up”. The lesson is that a business partnership has the potential to more than double the power of each individual. The objective of a partnership should be to be bigger, better, or stronger than each partner alone. A strong partnership can be highly successful.
In her article, Laura Petrecca covers the good , the bad and the ugly parts of a business partnership. She quotes Barry Nalebuff, a Yales School of Management professor, who co-founded Honest Tea with former student Seth Goldman. He says “his partnership helped propel Honest Tea from $250,000 in sales in 1998 to $13.5 million by 2006. In 2008, Coca-Cola purchased 40% of the firm.” That’s quite a success story.
Laura’s case for a partnership is the extra skill set a partner provides, if done correctly. “With a company comrade, there is always someone to brainstorm with, to share work duties and, of course, to help carry the financial burden. An agreement covering the ownerships structure, financing and division of duties is a must”. And be sure to address contingencies like what happens if a partner becomes disabled or dies.
Laura includes examples and tips on handling issues between married partners, as well as family and friend partnerships. Reporting on two high school friends who formed a partnership, she quotes “Things have been a little rocky, but we’ve managed to stay afloat, …I think (the troubles) have helped our business get stronger and our friendship get stronger.”
Successful Partnerships: Are You Ready?
I had record-breaking attendance at last week’s, “Successful Partnerships Tele-class!” where I shared a ton of valuable information on “how to turn your business into a fast-track growth machine”.
The response to this call was amazing, so I know using partnerships for growth is a topic many people want to learn more about.
If you were interested but couldn’t be on the call, not to worry. Click here to listen to the tele-class.
At the end of the call I made a Special Offer to everyone on the call. I’m leading a brand new rich-in-content 4-week tele-series, “Six Strategies to Turn Your Business Into a Fast-Track Growth Machine!” starting in October to reinforce what you learned in the tele-class, go into more depth, AND to provide you the tools and guidance to help you structure a growth-oriented partnership.
The Special Offer for the 4-week tele-series is a Savings of $50 if you sign up by midnight, Wednesday, September 30th. Use discount code BIZPC50 to capture the savings when you register. After September 30th, it’s goes back to the regular fee of $197.
With the response I’ve received so far, I expect to fill this program very quickly. I don’t want you to miss out, so I invite you to take advantage of this limited time Special Offer now.
Follow this link for details and to sign-up.
I hope you’ll be joining me for the tele-series starting on October 14th.
The Partnership Model for Growth and Profit
If you’re thinking a partnership is a business with one or more equity owners, you’re absolutely correct. But the terms partner and partnership have a much broader meaning in usage. Read or listen to the business news and you’ll hear lots about business partnerships. Businesses large and small are growing through partnerships.
Dallas Business Journal reports, “American Airlines has forged a three-year marketing partnership with National Football League’s New England Patriots.”
Reuters states, “Jamie Kennedy partners with Yoostar ™ to create original viral content and launch the Yoostar Comedy Channel”
Wall Street Journal announces, “Google and SpotMixer expand partnership to include In-Stream video advertising.
These partnerships have a specific purpose and goals, as should all partnerships.
What’s great about these types of partnerships is they can be consummated under a variety of terms and options. To learn more about the partnership options review my webinar, “How to Grow Your Business Using Partnerships”.
By using the broad partnership model you can:
- Expand your market
- Create new or improved products
- Add capacity
- Gain new resources.
For the small business some of the real advantages of the partnership model are you don’t have to:
- Add staff
- Commit additional resources
- Spend time learning or providing what someone else can do faster, cheaper and better
- Reinvent what someone else has already built.
What’s common to all partnerships is the potential for mutual benefit. One party may gain more than the other, but that’s OK as long as it’s understood and agreed. And each must realize their expected benefit or the partnership will not be successful. Typically the specific gain for each partner will be different based on the role they play.
For a business partnership to be successful all terms must be clarified, documented and agreed to by the parties. Verbal agreements are a great place to start, but if they’re not documented in the beginning, you’re setting yourself up for future problems. Your partnership agreement can be changed, of course, but until it is, the partnership agreement is the document by which you are bound.
To get started using partnerships, determine what you want to accomplish in your business. What do you need in order to accomplish it? Who can provide what you need? Your specialty and expertise will likely fill the need of someone else’s business objectives. What can you provide in return? You’re looking for the right fit.
To find potential partners, think about who within your existing network might have what you need or to whom you might be able to offer your “value”. Seek opportunities to help others. Let your needs and interests be known. Use the internet and its capabilities to get the word out that you are seeking a “partner” for a specific purpose and goal.
To learn more about the principles and processes of getting your business into growth mode with a partnership designed to help you meet your goals, register for the September 16th FREE Successful Partnerships Teleclass, “How to Turn Your Business into a Fast-Track Growth Machine”, The emphasis will be on using partnerships for growth.