Structuring your first business partnership what to keep in mind

There are many pitfalls that new business owners have to steer clear of when structuring their first business partnership deals with outside companies, and often, the only way to learn from mistakes is to make them.

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Structuring Your First Business Partnership:

What To Keep In Mind

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Verbal Commitments Mean Nothing

Let’s look at the biggest and most common mistake entrepreneurs make: the verbal agreement. It’s imperative to get everything in writing because verbal commitments mean nothing!









Agreements are easily misunderstood even when both parties have the best intentions. Also, keep in mind that there are companies out there who will take advantage of new business owners who only make verbal agreements. They know this is a sure sign of naivety.









The point is to always get everything in writing, even if it’s just a statement of work. Any form of a legal contract is better, but the deal has to be large enough to justify the legal fees.









A contract not only establishes the obligations of both parties but it also serves as a statement that you, as a new business owner, are committed to the partnership with its terms and conditions.









Tips for Getting the Deal Done Right








Know the Other Company Well – Just because another company has solid numbers does not mean that they will make for a good business partnership. Do your research on the other company and learn what makes them tick. Know what their current top issues are. If something does not feel right, that might be a warning signal.www.cynthiakocialski.com









Negotiating Begets Respect – When setting up a new deal with another company, keep in mind that you will have to negotiate. Negotiating means coming up with terms that both you and the other business can agree on.









Here’s some tips:1. Always ask for more than you want. There are just some people who feel they need a concession and this way there is always some points you are will be concede or compromise on.









Here’s some tips:

2. Never be afraid to walk away. Always know your best alternative to a negotiated partnership.










Here’s some tips:3. A business owner or entrepreneur should negotiate only the general terms and structure of the deal, and have a lawyer negotiate the nitty-gritty details. The lawyers negotiate the legal issues.









Hire a Business Lawyer – Corporate lawyers love to negotiate. Hopefully, as a good new business owner, you already have solid legal support in the form of a good lawyer that knows the ins and outs of the law when it comes to business dealings.









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