One of the first things to consider when starting a business is whether or not you want to go it alone. Entering into a partnership can have a number of advantages. For one, you can divide up the work and share financial attributions. This can be especially helpful if you’re starting a business with limited resources. In addition, pooling your resources can allow you to have more buying power and access capital and talent that you wouldn’t be able to on your own.

Partnerships can be a primary strategy for getting things done, whether it’s a small business or a big company. This strategy can be beneficial for all involved, but it’s important to remember that there are some things you need to know before entering into a business partnership. 

Jump into these introductory articles to get a grasp of the basics of partnerships:

• Introduction To Sales And Partnerships
• Tech Partnerships
• Strategic Partnerships
• Qualifying Possible Partnerships (And The Right Business Partner)

What to expect in this article:

In this blog post, we’ll share the key factors you need to predetermine before entering into a business partnership. By knowing what to look for, you can avoid potential problems and ensure the success of your business venture.

• What is a Business-to-Business Partnership?
• Partner Ecosystem
• Set yourself up for success
• Partner Activation
• Co-Selling
• Partner Marketing

There are many different types of business, but not all of them will be contributing to the partnership you’re aiming for. Every business relationship has its ups and downs, but nothing could go unexpected if you have a clear understanding of what you’re getting yourself into.

No matter what business you’re running—whether you’re a mom-and-pop shop or a massive corporation—you’re in it to make some cash. And that’s perfectly okay! It’s your responsibility as a business owner to ensure that your company is bringing in enough revenue to cover its expenses and pay its employees.

But making decisions that will increase your bottom line isn’t always easy. You have to strike a balance between investing in good partners, spending money on advertising and overhead, and identifying your company’s objectives. Sometimes it can feel like you’re walking a tightrope, but if you can find the right balance, your business will be successful and profitable. So don’t be afraid to chase those dollars—they’ll help you keep your business afloat and support your employees.

Of course, not all partnerships are created equal. You need to put up a strategy about who you team up with.

What is a Business-to-Business Partnership?

A business-to-business partnership can be defined as a formal relationship between two or more businesses. The partner businesses may be of the same size and market focus, or they may complement each other in terms of size, market focus, or product offerings. It can be short-term or long-term, depending on what they agreed upon. 

Businesses partner with each other to extend their reach into new markets, access new technologies, or share the costs of developing new products or services. A business-to-business partnership can take many different forms, but all partnerships involve some level of cooperation and mutual benefit.

Should you demand a Partnership Agreement?

A partnership agreement is a legally binding contract between two or more account partners. This can be done with the help of an attorney for legal purposes. The agreement sets out the partners’ rights, responsibilities, and limitations, and delineates their respective ownership interests in the business. It also sets out the terms and conditions of the partnership, including each partner’s capital contributions and ownership percentages.

Partnership agreements are an important tool for any business, as they help to ensure that all partners are on the same page with regard to the operation of the business. Without an agreement, partners may have conflicting ideas about how the business should be run, which can lead to disagreements and even litigation. For this reason, it is always best to have a partnership agreement in place before starting any business venture.

However, this doesn’t mean that you can’t start collaborating on a relationship in the absence of an agreement. An agreement is good to show how serious you are, as well as solidify the relationship. It’s also useful to set expectations for the relationship. You don’t get married to your spouse on day one, so you shouldn’t aim to have a formal agreement for your partnerships on day one. Once you’ve properly vetted the partnership and are more seriously allocating resources and developing programs, then you should strongly consider an agreement.

What is a Partner Ecosystem?

When it comes to business, it’s not just who you know—it’s who your partner knows. A strong partner ecosystem can be the difference between success and failure. After all, partnerships are how businesses get access to new markets, new technologies, and new clients. But what exactly is a partner ecosystem? simply put, it’s a network of businesses that you work with to achieve common goals for common clients.

For example, if you’re a startup looking to enter a new market, you should seek a partner with a larger company that already exists in that industry. Or if you’re an established company looking to adopt new technology, you might partner with a company that specializes in that technology. In either case, the goal is the same: to tap into new resources and extend your reach. So why is a partner ecosystem so important? Because it provides opportunities that you wouldn’t have access to on your own. And in today’s competitive landscape, that can make all the difference.

Apple, for one, has created a partner ecosystem around its iPhone, which includes carriers, app developers, and accessory manufacturers. This ecosystem lets Apple offer a comprehensive product that meets the needs of a wide range of customers.

Set yourself up for success in business partnerships

Entering into a business partnership can be a great way to expand your reach and grow your business. However, in order to be successful, there are a few things you should keep in mind before taking the plunge.

Your partner ecosystem is important.

Think carefully about who you partner with and how their expertise fits into your overall ecosystem. You want to make sure that your partners complement your business, rather than compete with it. Typically,

Partnerships require communication and trust.

Be prepared to communicate openly and honestly with your partner, and build a foundation of trust. Without these two elements, partnerships are likely to fail.

Know your goals.

What do you hope to achieve by entering into a partnership? Make sure that your goals are aligned with your partner’s, and that you have a clear plan for how to achieve them.

Here are the 3 things you wish you knew before entering partnerships:

1. Partner activation is key

All too often, businesses enter into partnerships without giving much thought to how their partner will actually be working to promote and sell their products or services. But if your partner isn’t properly activated, the partnership is likely to fizzle out quickly. Make sure you partner with someone who is committed to making the partnership a success.

What is Partner Activation?

It is your duty to make sure that your partner is actively involved in promoting and selling your product or service. Sometimes, you might agree with one partner and not with the other. If you don’t properly activate (and set the right expectations) then your partnership relationship will crumble. Activation that capitalizes on initial momentum will help you prove the value to your partner and your business early on. 

Expectation:

Partners are excited! They’ll definitely move quickly and bring us all the business!

Reality:

Partners are busy. That’s just a fact of life. And when they’re busy, it can be a challenge to stay top of mind. But if you want to continue to thrive as a business, it’s important that you find ways to stay top of mind with your partners, provide value, and promote action. That might mean dividing up tasks among your internal team so that you can keep the momentum going and capture the excitement. Or it might mean finding new and creative ways to engage with your partners.

Regardless of what it looks like in any given situation, the important thing is that you find a way to keep moving forward and growing your business. Otherwise, you’ll quickly become lost in the shuffle. The most important thing here is ensuring clarity is given to your partners and they can easily take the next step.

2. Co-selling should be taken into consideration

Co-selling can be a great way to generate more revenue and reach new customers. But it’s important to make sure that you’re both on the same page when it comes to pricing and marketing. Otherwise, you could end up undercutting each other or confusing customers.

What is Co-Selling?

First, let’s get one thing straight: co-selling is not the same as cross-selling. Cross-selling is when you try to sell your customers additional products that complement the product they’ve already purchased from you. Co-selling, on the other hand, is when you team up with another company to sell your products together. It’s a win-win situation – both companies get to tap into each other’s customer base, and customers get access to a wider range of products. So why wouldn’t you want to try co-selling?

Co-Selling vs. Reselling

There’s an age-old debate in the business world: should you focus on co-selling or reselling? Both approaches have their pros and cons, but it will really vary on your individual business goals.

If your goal is to build long-term relationships with customers, then co-selling is the way to go. This approach involves working closely with customers to understand their needs and develop solutions together. The benefits of this approach include deeper customer loyalty and a better understanding of their business.

On the other hand, if your goal is to generate quick sales, then reselling is the way to go. This approach involves selling products or services that are already available on the market. The benefits of this approach include faster sales and lower costs. 

If you’re looking for a way to reach new customers through your business partnership, co-selling can be a great option. By teaming up with another business to sell your products or services, you can efficiently tap into their customer base and reach new people who might not have otherwise heard about your business.

Expectation:

Of course, the sales team will engage with partners, the data is clear, and it makes sales easier, larger, and better!

Reality:

Salespeople speak “sales” not “partnerships”. If you expect your sales team to start talking about partnerships and working with other departments, you might want to think again. Salespeople are more likely to engage with partners if they see a clear path to more sales and bigger commissions. Data may show that partnering with other departments can lead to increased sales, but salespeople are more likely to be convinced by a personal testimonial from another salesperson. So, if you want your sales team to start working collaboratively, make sure you provide them with the tools and resources they need to be successful.

3. Partner marketing is a must

Partner marketing can be a great way to get the word out about your business. But again, it’s important to make sure that you’re both on the same page when it comes to messaging and branding. Otherwise, you could end up sending mixed signals to potential customers.

What is Partner Marketing?

Partner marketing is a type of marketing where two companies work together to promote each other’s products. It’s a bit like a mutual back-scratching arrangement – each company agrees to promote the other’s products or services, and in return, they get exposure to a new audience. Partner marketing can be an effective way to reach new customers, as it leverages the existing customer base of both companies.

Expectation:

Partners will be on top of things and give exactly 50% to helping with the project execution.

Reality:

We typically approach a project with high hopes and expectations, only to be let down by our partners (or rather, our own incorrect expectations!). Though it’s easy to feel like we’re being taken advantage of, the reality is that oftentimes, we simply haven’t set ourselves up for success.

If we want our partners to give us their all, we need to make it easy for them. By providing templates and keeping a close eye on our progress while frequently tracing the project, we can ensure that everyone is doing their fair share. It’s up to us to create an environment in which everyone can thrive. So next time you’re feeling let down, take note that you have the power to change the situation. Just roll up your sleeves and get to work–you’re one step closer!

The most important thing here is that no one really knows who is going to take the lead, especially in a partnership. So when YOU take lead, you are in a unique opportunity to properly delegate and keep the project on task. Your partner will appreciate this, as they have a lot going on on their end. The end goal for you is to make them want to work with you again and again and again.

Key Takeaway

You can’t expect people in your organization to do the work for you. It is up to YOU as a partner, with help from systems and clarity on what needs to be done, to put in that extra effort! But also remember: sometimes all we need are some clear instructions so our partners know exactly where they should slot something into place; this will make every day easier because there won’t be any guesswork involved.

At BD Paths, you can get help with consultation and implementation services to streamline processes across your organization.