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

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!

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Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

Tips for Getting the Deal Done Right

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Structuring Your First Business Partnership: What To Keep In Mind

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

Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

Here’s some tips:

2. Never be afraid to walk away. Always

know your best alternative to a negotiated partnership.

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Structuring Your First Business Partnership: What To Keep In Mind

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.

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Structuring Your First Business Partnership: What To Keep In Mind

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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Structuring Your First Business Partnership: What To Keep In Mind

Share your PASSION and KNOWLEDGE

with world.

Get published on

Start-Up Entrepreneurs’ Blog

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