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
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