| Even with the aid of technology, there are limits to | | | | small law firm, an accountant, a management |
| what a small business can accomplish by itself. You | | | | consultant and a marketing person to provide a |
| may understand that, but what if you still want to do | | | | broad scope of client services which are marketed |
| more? A workable solution is partnering. Though it | | | | under one name but delivered independently or |
| takes many shapes, the core of the partnering | | | | through a cooperative effort. |
| concept is that two or more businesses team up to | | | | Partnering can also give you the resources to handle |
| achieve something together that they can't do alone. | | | | a large one-time project without increasing your own |
| Partnering with other businesses can help you provide | | | | overhead or actually hiring employees. Another |
| a broader product or service package to a particular | | | | advantage of partnering is that it is a way for a |
| market segment; it can give you the resources to | | | | homebased business to grow substantially without |
| handle a single major project for a client; or it can | | | | having to move to a commercial location. |
| organize the resources you need to get certain | | | | Tips for Effective Partnering |
| components of your customers' needs met. In all of | | | | - Choose partners carefully. Be sure they have the |
| these scenarios, partnering creates the opportunity | | | | skills and abilities you need, and share your level of |
| to present your clients with the same vision of | | | | commitment. |
| seamless capacity that large corporations do--while | | | | - Define the scope of partnership. Are you working |
| working from your home or small office in a | | | | on an equal basis, or will one of you function as the |
| relationship with other similar-sized businesses. | | | | managing partner? What roles will each partner play? |
| There are no fixed rules for individual partnering | | | | How will the compensation be calculated and |
| agreements. The concept is rapidly evolving, with | | | | distributed? |
| some partnering associations looking like a stand-alone | | | | - Put it in writing. A detailed, well-crafted partnership |
| business that is separate from the partner's primary | | | | agreement will prevent misunderstandings, memory |
| companies, and others more closely resembling | | | | lapses and future conflicts. |
| outsourcing or subcontracting. Some business owners | | | | - Develop and stick to an operations plan. How will |
| partner only under carefully-drawn contracts; others | | | | the work actually happen? How and when will the |
| do it on a handshake. What's important is that you | | | | partners interact? |
| develop an arrangement for work performed and | | | | - Plan for the unexpected. How will you handle |
| compensation received that satisfies everyone | | | | problems and resolve conflicts? If a partner wants to |
| involved. | | | | dissolve the agreement, who ends up with what? |
| Partnering allows very niche-oriented businesses to | | | | - Set a minimum "no exit" time period. New ventures |
| serve clients who have complex needs, and lets | | | | take time to become productive. Make a mutual |
| them compete against large firms that have all the | | | | commitment to stick with the partnership long |
| necessary staff in-house. For example, a homebased | | | | enough to give it a chance to prove itself. |
| human resources consultant could team up with a | | | | |