Few Georgia businesses can reach their full potential alone. Most businesses have mutually beneficial relationships with other companies. During business formation, cultivating partnerships is one way to help grow a new business.
Choosing which companies to align with, however, can be a challenge. Many people make the mistake of partnering with any company that is willing without considering the consequences. Establishing a relationship with companies that may not share the same vision can alter the perception of a business to potential customers.
Where it is true that compromise is often essential to the success of a new venture, a new company should not have to give up its identity in order to align itself with another brand. For this reason, it is important to have a clear understanding of how an entrepreneur wants the business to be viewed by the public. Once that vision is created, a Georgia business owner can seek out alliances with like-minded companies.
Keeping this in mind, it is also important that the partnership contributes to the success and growth of a new business. This means being honest about the limitations of the company. Partnerships often work best when they fill in the gaps for each other.
Once a business owner decides to forge a partnership with another company during business formation, it may be beneficial to cement that relationship. Negotiating a contract that spells out what each party expects of the other can help ensure that both companies are given the best opportunity to succeed. In addition, if one party fails to fulfill its obligations under the contract, it may be possible to repair any damage done to the injured party. If a court rules that one party breached the contract, the other may be awarded both monetary and non-monetary damages.
Source: entrepreneur.com, “Why Small Businesses Should Partner Up With Other Brands“, Web Smith, April 10, 2015