warren buffett
May 10, 2018

7 Steps to Strong Partnerships

 |  By: Mike Opperman

Knowing when a partnership will work and when it won’t is important to a successful business. Members of the Forbes Business Development Council shared how to avoid mistakes when setting up strategic partnerships in an article on forbes.com. Here are seven ways to build strong partnerships:

1. Have a formal agreement. Before entering into a partnership, create an agreement that identifies who will do what, when and how they will do it. Determine when payment will be made and how either party can terminate the relationship. —Elizabeth Pritchett, Center Point Business Solutions

2. Ensure equal give and receive. Establish what is expected from both organizations. Make sure there is an equal give and receive, and that each company feels they are receiving equal value. —Brandon Lytle, Leadpages & Drip

3. Set expectations upfront. The single largest point of failure in a relationship is setting expectations after every interaction. —Christopher Kingman, TransUnion

4. Avoid bad deals. When setting up new strategic partnerships, avoid disadvantageous terms. For a relationship to be sustainable, it ultimately has to benefit both parties. —Adam Mendler, Custom Tobacco

5. Get on the same page. For partnerships to be successful all must be aligned on which responsibilities fall to each side and the timeline for both measuring those milestones and achieving them. —Jen Tadin, Gallagher

6. Really listen. Hearing and not listening is one of the biggest mistakes in a partnership. Don’t assume anything, keep quiet and listen. Ask probing, open-ended questions. —Wayne Elsey, Elsey Enterprises

7. Vet your partner’s expertise. Only enter into deals with partners who have demonstrated expertise relevant to the venture and verifiable personal integrity. —Jeff Dudan, AdvantaClean

 

Read the full article from Forbes.  Also, check out this awesome infographic from Entrepreneur magazine.

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