By: Ellen Graham
In business, building relationships is very important for the success of your company. Many would argue that strategic partnerships are essential in order to reach your goals, however, it can be difficult to know where and how to begin this major step for your business.
First, you must realize that these partnerships should be based on respect, trust and communication. Without these three key aspects, the arrangement can easily fall apart, causing more problems for you. When working to accomplish a shared objective, partners inevitably share a mutual dependency, and, in any business venture, it is always vital to recognize the key components for success before consenting to any concurrence.
A business will need to research the company they are considering entering into a partnership with before making any moves. Knowing your partner is fundamental to creating the trust and respect that every partnership needs and deserves. Understand their process, their strengths and their weaknesses, in order to understand how you can help each other. This will allow you to make your case to them in a clear, confident way.
When discussing the partnership, both sides will need to decide whether they would like a formal or informal approach. Some companies insist on contracts to identify each party’s accountabilities and roles. Contracts minimize the cost to your company and prevent opportunistic management while monitoring the performance of both companies. However, some alliances would rather do without a contract, leaving room for unforeseen opportunities to be explored and reducing monitoring costs. A partnership like this is completely trust-based and sometimes risky if the other party is not straightforward and communicative.
Whichever approach you choose, it is necessary to know what you are willing to give as well as what you want in return. Realize that entering into this partnership is a win-win situation as long as it is done with thought and clarity. Make sure to be patient with your partner and understand their practices. Focus on building a successful alliance and be responsive; these collaborations take constant attention and communication.
Lastly, make sure to continually assess and celebrate your success, while being persistent in your decision-making, interaction and conflict resolution.
