A business partnership can turn your business into a history-making victory or colossal disaster. A trusted business partner plays a crucial role in motivating and supporting the implementation of the next-generation business ideas.
The right business partner can bring erudite skills and an incisive experience. Alongside, they contribute to your values, share the same dream, entrepreneurial spirit, and vision. A partner should come free of baggage as well as add credibility and resources to your endeavours.
The power of the trusted partnerships
“Collaboration is a business strategy that integrates innovative partners seeking blue oceans.” – Jennifer Ritchie Payette
The crux of having a business partner is to leverage their diverse skills and talents for business growth. The partnership must assure a sense of wholeness that is difficult to achieve alone. Here are some of the sensational startups of all time that made history owing to their partnerships:
- Warner Bros. (1923): Sam Jack, Albert, and Harry Warner
- Hewlett Packard (1939): Bill Hewlett and David Packard
- McDonald’s (1955): Richard and Maurice McDonald
- Microsoft (1975): Bill Gates and Paul Allen
- Apple Inc. (1976): Steve Jobs and Steve Wozniak
- Google (1998): Larry Page and Sergey Brin
- Twitter (2006): Evan Williams, Biz Stone, and Jack Dorsey
And the list is endless. Inspiring!
Such magnificent partner pairs found elite companies that are the most sought-after brands for current generation. And not to forget, the millions of dollars investments their investors put in them because of their sustained trust.
However, there is also a flipside of businesses led by business partners. Wasserman reports that about 65 percent of high-potential startups dissolved because of continually unresolved internal conflict among co-founders. This explains that successful partnerships share some key traits that contribute to their success.
Thus, if you are looking for a business partner, the task can be more than daunting. This post helps you with a strategy to choose a trusted partner for your business and helps gain a clear idea of how to choose a business partner.
Checklist to choose a right business partner
For starters, here is a checklist to find the right business partner.
- Transparency: For a successful business run, all the members in the partnership must be transparent in their approach.
- Trust to confide: The trust among business partners should be beyond any limits. A chain is as strong as its weakest link, and so is the necessity for mutual trust among business partners.
- Open & respectful communication: A successful business partnership creates an environment where all partners have equal rights to speak about their concerns, along with mutual respect for everyone’s views.
- Mutually beneficial relationship: Partnership skewed on one side is not sustainable. Nurture a healthy win-win situation for all partners. For long-term success, foster a transparent, mutually beneficial relationship between partners.
- Mutual trustworthiness: Integrity and trust are two pillars for any business. A sustainable relationship is built on the mutual trust factor and the belief that both are working towards mutual benefits.
- Accountability: Right partnerships can distribute and assign accountability to maintain the discipline necessitated to stay motivated. A trusted business partner stays accountable for any flaws and errors in the decisions, visions, and executions.
- Ability to answer hard questions: A trusted business partner can answer hard questions. Encourage your partners to have well explained and documented answers to hard questions to help handle contingencies.
Traits of a trusted business partnership
Partnership is a long-term journey. Here are some traits that help keep it sailing smooth:
Clear deadlock provisioning: Ensure clear and strong provisioning in place to overcome deadlocks on crucial issues. A transparent business partnership knows what happens next when such situations arise and how to resolve disagreements on key issues concerning the management of the enterprise.
Value the spirit: The spirit of the deal once agreed upon should always be upheld. A clear understanding of the deal help unwinds it at a point when needed.
Establish a transparent pilot program: Partnerships are intended for the long term. Chalk a way to reward all parties via a transparent pilot program by transparently sharing all metrics.
Draft a favourable outcome for both parties: Effectively negotiate to instil confidence in each partner that they are into a great deal. Offer best negotiation and agreement and resist pushing deals in your favour.
Chalk an unambiguous information flow: Have a detailed plan in place from the inception of the deal to communicate problems and solutions effectively.
Who is going to do what?
Which channels to leverage?
What to spell out at the outset?
What is the role of each one in the business horizontals?
Form a Vested Value Clause: At times, the trust may not be strong between the parties in a third-party relationship. In such scenarios, the inclusion of the vested value clause helps build trust. It strengthens active partners if other partners do not reciprocate trust.
Make a way to dissolve when not partnership is not working: If your partnership falls apart, include a way out in your agreement. Dissolve it if necessary, to avoid lurching problems.
Benefits of choosing the right business partner
Working with an erudite and intelligent business partner changes the dynamics of your business. Here are the advantages of choosing the right business partner.
Boost for a startup
Latching on to the right business partner can lead to a welcoming transformation of a startup. A trusted business partner, with their diverse expertise, vision, experience, and domain expertise, helps a startup business grow by leaps and bounds. They share the workload and enrich the idea, thanks to their solid business acumen. A startup with the right business partner could soon be at the helm of success.
Builds capacity to absorb human resources
Trusted partnerships last long. They create a sense of pride and inspire employees. Thus, with an efficient business partner on board, the productivity may increase twice as much. And this is the foundation to build profound business scalability and capability.
Furthermore, working with a business partner encourages the division of labor and economies of scale by segregating tasks per competitive advantages, conserving time, and removing the duplication of efforts.
Adds diversified skills to the table
One of the ideas to include a new business partner is to introduce a brand-new skill set to the existing business. The right business partner who hails from a varied background and experience enriches your existing horizontals. Thus, leveraging a medley of skill sets helps the business unveil an additional dimension and avenue of performance and growth.
Evaluates and enriches ideas
Entrepreneurs have difficulties in maintaining objectivity while implementing new business ideas. The right business partner discusses and brainstorms their existing and new ideas, thus paving a straightforward way for success. A business partner can build on your ideas, offer more inputs to reinforce the existing plan to ensure a better success rate.
Unfolds networking opportunities
Networking is a key and fundamental aspect of any business. Meeting new people can translate into opportunities. Networking with new people through various personal and business networks can create new avenues of business opportunities. Having a trusted business partner gives the much-needed impetus to expand contacts, relationships, and connections to pull off your business.
Provides a new business perspective
For a business to grow, the decision-making process should be realistic. Hindrances such as emotions, too much confidence in decisions, ignoring or resisting feedback, etc., can hinder business growth. The right business partner helps identify such limitations and motivates you to pursue new opportunities based on their exposure and experience, thus providing a faultless business perspective.
When do you need a business partnership?
Collaboration, partnership, and networking are potent mechanisms that catapult changes in any business through sharing diverse expertise and strategies. A trusted business partner can create the right motivation for you and your team.
Want to gain clarity if you need a business partner or not? Check if any of these apply to you.
At the outset of a new venture, you lack the capacity to hire employees.
You may be finding it tough to realize the cash and gain the trust of customers.
Maybe your competitors are making their way ahead of you in closing deals.
You lack the budget and resources to step up your business.
Want to take your technology to a global level by leveraging the state of art software solutions, but don’t know how.
Here are some more reasons that throw clarity if you need to enter a business partnership:
- You lack expertise and acumen in certain essential areas that may include and not limited to technology, finance, sales & marketing, or operations.
- You have a blazing business idea but wish to garner more support and confidence to implement it and looking for help to enrich and foster your business model in the related fields.
- Your business idea is complex and needs more extended expertise, knowledge, and ingenuity to handle.
- Keen to take your business to a next level by working with a business partner from a similar field with the right exposure and success who can fill in the gaps and strengthen your position in the market.
- Want to put your business on a safe path by collaborating with a brilliant business person who adds value to your business.
Thus, in such situations, you may need a partner who can speed up the capacity-building process to kick-start the business.
How to find a business partner?
People proceed into business with the trusted business partner who is established and has a better name than them in the market. The digital boom opened up a multitude of options to identify a business partner. While the ever-green in person networking will always be in vogue, the internet and social media, online searches including networking websites, can source new business relationships.
Someone you know and already in touch
Many entrepreneurs prefer friends, spouses, family members, or close acquaintances because of the trust factor. But there are certain downsides attached to partnering with known buddies but do not always apply.
What to do: Look for potential like-minded business partners at industry-specific events or in professional association meetings.
Meet people online
You can find potential business partners on social networking sites that include LinkedIn, Facebook, and online discussion forums. These critical businesses take time, so do not rush to take hasty judgment.
What to do: Research their profiles, interests, businesses, and investment portfolio.
The Bottom Line
Finding the trusted business partner is one of the uphill business decisions. They can be cardinal assets or nightmare. Thus, incisively analyze why and when you need a business partner. Settle with one who fits the criterion mentioned above and can help you entrust your business with them.
Who are we?
Cloudely is a premier Salesforce solutions provider for global companies. Its reach also extends to Staffing and Quote to Cash solutions.
Cloudely believes that boundless possibilities result from the inclusion of the right business partners. We completely understand the challenges that overwhelm any business owner – be it a startup entrepreneur or an established business magnate.
Whatever your challenge is, we have the solution. Having made our presence in the industry from 2013, we gained the trust of our global partners.