Business Partnerships – Pitfalls To Avoid
Business partnerships are well worth pursuing There are some things to watch out for though, when it comes to forming business partnerships. Here are some common issues and concerns that arise.
Tips For Business Partnerships
- Make sure you form business partnerships with companies that do not compete with you on any level. Look at their business card, marketing collateral, websites, etc.. and talk to their references to confirm.
- Always initiate a non-disclosure agreement and a non-compete agreement with companies you enter into a business partnership with. Have these agreements reviewed by your attorney.
- Make sure your clients are very seriously committed to the project before you waste your time, and your potential partner’s time. You don’t want to be forming business partnerships and having them quote on jobs or do exploratory work, only to find out the client wasn’t that serious.
- Qualify your client’s budget, timeline, and urgency before soliciting a business partnership.
- Discuss the nature of the relationship and the specifics of the business partnerships at the outset. At a minimum, you need to decide whether work is on an informal referral basis, whether there will be revenue sharing, whether the relationship will be master-subcontractor, who’s going to be the lead on the account, and who owns the account.
- Don’t assume that your partner understands the concept of small business virtual IT. You may need to spend a few minutes educating them and actively managing all the relationships.
- You have to manage the relationship between your client and your business partner as a diplomat. Your role is to shield your partner and your client from things that are outside of their comfort zone.
- You will also need to act as a translator when you enter a business partnership. Your client and your partner may not talk the same language (business language, not French versus English) so you will be the switchboard. You must coordinate the whole process.
Bottom Line on Business Partnerships
As a virtual CIO, when you enter into a business partnership you become the manager of the project your partner is working on for your client. You need to have clear guidelines set with your business partner, and you also need to make sure that the processes done through your business partnership are of the same high quality you would do yourself. Your role is mainly as liaison, making sure the project is completed to everyone’s satisfaction.
In this article, you’ve been introduced to Business Partnerships. To learn more about how you can improve your knowledge about Business Partnerships, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.