It’s a great question. We spend a lot of our time on our blog talking about how to make business partnerships work (http://www.mcbrideforbusiness.com/blog/finding-the-righ…inding-a-partner/), but at the end of the day, how do you make money?
Like everything else, it starts with the fundamentals. You’re going to make money in business partnerships when you have the foundation laid right when you know where you’re going and you know how to do it. You should have a partnership for the right reasons, and you should have the synergies. You should be creating 1 + 1 = 3 situations.
How do you know when this is present?
Step 1. You know that it’s present when you can do more with your partner than you can do alone when you add more value together when you create more wins for your customer than when you do it alone. If you don’t have the ability to get past step one, there’s no point to think about more advanced steps.
If you have the fundamentals and there’s a reason to be in a partnership, and you and your partner are going to be able to do more together than you could alone, then we can start moving on to more advanced concepts. How do we make partnerships work? How do we get everything right up front and make sure the partners are all rowing in the same direction?
Step 2. Using conversation skills [Insert Link] and setting up a fundamental agreement so that everything can move forward. Getting the upfront understandings of what the partnership will be, how the management will work, how everybody will come together, how profits will be divided, and most importantly, how we’ll deal with stresses on the partnership. Those things that nobody wants to talk about – like death, disability, divorce, and disagreement.
Step 3. Make sure you are protected. It’s great to make money in a business partnership because of their synergies and that 1 + 1 = 3, but if you don’t get paid at the end of the day, there’s no point in it. So you want to make sure you have those protecting measures in place to get there.
The key to making money in business partnerships is to make sure you have something that makes sense, make sure you have a business that’s synergistic, that the partners add to each other and create more value for your customers. Then implement procedures so that you and the partners work well together, and, of course, protect the value on the back end so that nobody walks away empty-handed.
What are your thoughts on how to make money out of business partnerships? How do you make sure your business partnerships work the right way? Join us in the comments below and let us know your thoughts.
Make sure you download our free checklist to assess your business: www.mcbrideforbusiness.com/BlogGift
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Kevin Garcia.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at email@example.com or (214) 418-0258.
Get Shawn’s latest book: www.mcbridebook.com
Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment
Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts