Thursday, October 18, 2007

What To Do If A Company Wants To "Partner" With You

At one point or another, every entrepreneur will get contacted by someone wanting to "partner". This means that somehow they want to combine what your company has to offer with what their company has to offer. The common goal is usually to generate more revenue.

Partnering with the right company can be a great idea. My company, Diversity City Media, has had a long 8-year partnership with HBCU Connect. We've complemented each other in many different ways, and the relationship has been mutually beneficial. Our partnership has resulted in more revenue, and less expenses. Ours is just one of many successful partnerships.

However, sometimes a business partnership is not a good idea. Just because someone approaches you about it, doesn't mean you have to accept their offer. Here are some questions to ask yourself before entering a partnership:

1) Is this "partner" bringing an equal amount to the table? In other words, will you be getting as much out of the relationship as they will?


2) Will my company be too dependent on this partnership? You don't want to be in a situation whereas if your partner pulls out, then that means the end of your company.


3) Is their company reputable? If you partner with a company that has a bad rep. People will associate them with you; So your reputation will suffer as well.


4) Does this partnership have long-term benefits? You want to determine whether or not this partnership will help your company 5-10 years from now. If not, it may not be worth your time.


5) How exactly will this partnership help my company? Many times a company will want to partner with you, but you may not see how that partnership will help you. If this is the case, don't give into pressure; Simply turn the offer down.

2 comments:

  1. Dante, I'm loving your blog! I have been giving serious consideration to partnering with another firm. I'm glad that you wrote about this, because it is definitely one way to take your business to "another level".

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  2. Yes, partnerships are definitely good for a business. You can really get alot done when another company is helping. This also applies to barter agreements, and affiliates.

    Best, Arthur

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