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Blogging for Business
Not long ago a blog was simply an online diary. Initially, people decided that blogging was describing, in excruciating detail, how their day went, what they had for dinner last night, and why they spent the whole weekend doing laundry. Since...
Business Career, Executive Coaching Article - The Top 10 Tips to Begin the Practice of Positive Affirmations
Positive Affirmations are things we say to ourselves that build us up and make us strong. They empower us to take chances and to be our best. Thoughts run through our mind thousands of times a day and are often negative. Making positive affirmations...
Making On-Job-Training Work
Many organisations rely on on-the-job training (OJT) without any effort to ensure it is effective in providing the skills and knowledge required for superior performance. This article discusses ways in which OJT can be managed to ensure employees...
Networking 101
As a new business owner you must wear many hats.
You will need knowledge of accounting, marketing, advertising, management, administration, inventory, sales, etc., in addition to knowledge pertaining to your industry. Since you may be very...
What The Buddha Says About Coaches
There is a Buddhist saying that goes like this: "If you meet the Buddha on the road, kill it." This means to kill any concept of the Buddha as something apart from oneself. To kill the Buddha is to BE the Buddha. Any concept we can have of the...
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Partnering For Progress and Growth
Many home-based entrepreneurs are gaining new ground with partnering arrangements. Although it takes many shapes, the core of the partnering concept is two or more businesses teaming up to achieve together what they can’t do alone. Partnering with other businesses can help you offer a broader product or service package to a particular market segment, provide the resources to handle a single major project, or organize resources to meet your customers’ needs. Whatever the scenario, partnering gives you the image of seamless capacity typically associated with large corporations.
Even though it has been around for a while, don’t expect to find fixed rules for individual partnering agreements. With the concept rapidly evolving, some partnerships resemble entities unto themselves; others parallel outsourcing or subcontracting relationships. Some business owners partner only under carefully drawn contracts; others do it on a handshake. What’s important is developing an arrangement that satisfies all parties involved.
Partnering allows very niche-oriented businesses to serve clients’ complex needs and to compete against large firms that have all the necessary staff in-house. Partnering also allows you to handle a large one-time project without actually hiring employees.
Another advantage of partnering is it provides a home-based business the opportunity to grow substantially without having to move to a commercial location.
Get It In Writing
While partnering enthusiasts claim there are no serious drawbacks to the process, you should still proceed with caution, especially in the beginning. Formalize your agreement with a detailed written contract that clearly defines each partner’s role and responsibilities.
The contract covers what each is responsible for and what the compensation will be. It also includes short and long-term goals. The process of drawing up the contract forces you to think things through and be sure both are on the same page before starting. A business relationship is
like a marriage-it takes work and sometimes you have to compromise. Just like a marriage certificate doesn’t guarantee a happy relationship, a contract doesn’t guarantee a successful partnership.
Even so, a contract can provide the foundation of a mutually beneficial business relationship and give you processes to end the alliance should that become necessary.
Think about all the things that could go wrong and how you would deal with them. What if one of the partners wants out? If the partnership splits up, who keeps the clients? Who signs contracts? How will you handle a situation where one partner fails to fulfill his or her obligation?
Consider the issue of liability not only from the legal perspective but also as it pertains to image. What happens if one of the partners either performs poorly or fails to perform at all? An attorney can review your agreement and advise you so you’re protected against legal liability, but you may still be putting your reputation at risk. Take the time to get to know a prospective partner, gain confidence in his or her abilities and reliability, and check references.
Where do you find good partners? They’re pretty much everywhere. Clients may also serve as the catalyst for a partnership, or contacts may be made through various networks.
As successful as partnering can be, don’t rush into it. Define your niche and your client base, and develop trust with your clients first. Once your business is established on its own, then look for ways to enhance it through partnerships.
Copyright 2004 DeFiore Enterprises
About the Author
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses.
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