To Partner or Not to Partner? Follow these 5 steps to make your decision easier

Small Business Owners:  How to prepare for a partnership 

Thinking of adding a business partner to expand your small business?

What steps will you take to make this important decision? 

Strong research skills are vital to getting the results you want: 

1) a partner that helps you grow your business and

2) a partner that matches your small business' & customers' needs  

 5 Research Steps for a Successful Partnership:

Step 1    Do your due diligence

Investigate the potential partner thoroughly before creating a partnership agreement

• What is their brand?  What do they stand for?  See my post on Brand Strategy for easy to follow fill in the blank sections.
• Who are their target markets? Competitors? Suppliers?  See my post on target marketing for more detail.
• What are the parameters of their business: products, geographic, online/offline?
• What are their financials:  check general public knowledge before you request company access?
• Where is their marketing strategy?  Traditional, Trade, Direct Marketing, Social Media, Public Relations
• Complete a full SWOT analysis:  Strengths, Weaknesses, Opportunities, Threats 

Bonus: Here are a few free SWOT templates from Smart Sheet, Business News Daily and Creatly (powerpoint ready).

Step 2 Your turn

Answer the above questions about your own business as if you were an outsider

Step 3 Compare Step 1 & 2

Create a side by side chart for each area.  Use a large white board or multiple poster boards or if you prefer project management software or Excel spreadsheets. 

• Where are the inconsistencies or differences?  
• Is the potential partner filling gaps in your portfolio or markets or adding more?
• Are the differences deal breakers or a solution waiting to happen?

Step 4  Think beyond the initial partnership

Consider how your business will grow

• Where will the partnership be in a year? 3 years? 5 years?
• What terms must be included to mitigate risk for both parties?
• How will the partnership impact the overall market for your business?
• What changes are you willing to make to make the partnership work?
• Financials, financials, financials….

Step 5 Gut check

How do you feel about this partnership? 

• Is it right for your business?
• Is the timing right for your business?  

 Protect the small business you created. 

Take time to do thorough research before jumping into a new partnership.  

Start your research and get excited about the opportunities to grow your small business into the future. 

Heather is the creative brand coach, a marketing consultant helping businesses & professionals build strong brands to connect with their target market. Her prior experience includes Research & Development and Brand Management Marketing for global consumer products goods companies.  For over a decade, she has helped small business owners focus on their passion and their products, while creating strong brands and solid business plans.

Find Heather via Twitter @creativebrandch or the blog SmallBusiness, Big Brand.