are many important stages to creating a successful business to business
partnership deal. Generally all B2B partnerships keep to a few basic steps from
initiation to execution. The following are ten points to be aware of while
moving through the process of establishing a business to business partnership.
There are many important stages to
creating a successful business to business partnership deal. Generally all B2B
partnerships keep to a few basic steps from initiation to execution. The
following are ten points to be aware of while moving through the process of
establishing a business to business partnership. Whether you’ve never
established a partnership business deal or you have created several, these steps
can be a good guideline to follow.
Process guide for Business to Business partnership
Identification - Identify the
advantages you’re seeking in forming a business partnership deal. This way you’ll
have a clear idea of what you’re looking for in a partnership. Also be sure to
understand what value your business provides to potential partners.
Exploration - Finding the
right partner is critical. Create a target list. Reach out and meet people on
your list. Be ready to perform due diligence on companies and understand the
opportunities that may be presented to you and your company.
Structuring - Work out the
partnership details with the other executive management team. Make sure to
include these steps during implementation of the partnership.
Negotiating - Know what you
need from the partnership and what your final numbers are concerning any revenue
shares or costs associated with the partnership.
Drafting - Work with
your company's legal team to create a template for creating partnership deals
especially if your company’s business model is B2B.
Reviewing – Try to get as
much of the work done beforehand as possible before having the lawyers review
the agreement in order to keep costs down. After you have a great working
template just a simple review is often all that will be needed.
Signing - Always meet
in person if possible to sign the agreement and make sure to keep copies of all
business to business partnership agreements both in a cloud based service like
Dropbox and in hard copy formats.
Executing - Educate your
staff about the partnership. Be sure to create a training manual that explains
the details of how the partnership works. This can also be provided to the partner’s
staff in order to bring them up to speed. Make sure everyone involved has
current and correct contact information to reduce communications issues.
Review - Schedule
regular partnership review meetings and updates. This keeps communication open and
is critical in the early stages of a new partnership to fix any unforeseen
issues that may come. This will also be a valuable tool for established
partnerships as new opportunities for growth may present themselves. Always be
on the lookout for new and innovative ideas as they relate to your business to
Reward - Build
incentives for both your team and the partner’s team. When staff can see the
direct benefits to new relationships in their pockets versus just more work
being placed on their shoulders they are more likely to take the relationship
seriously and strive to maintain effective business partnerships.
Businesses to business partnerships are one of the best ways to grow a company and expand into new markets quickly, but they do require a well thought out start-up process if they are to be a successful and integral part of your businesses growth strategy.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture
Marketing firm. He exemplifies how to profit from Joint Venture relationships
by creating profit centers with minimal risk and maximum profitability.