Entrepreneurs can often compare a new business collaboration to a marriage, with each member offering particular assets. If trust issues are hidden deep beneath the surface, however, it’s likely the union won’t last too long. Even with the right candidate, it’s important to take a measured approach before beginning a long-term partnership. Collaboration may help achieve stronger results through technology, culture and empowerment.
Entrepreneurs that understand the fine art of collaboration are well positioned to surpass
their rivals in this global economy. All of an organization’s activities – product development, customer service, sales, etc. – may benefit from the knowledge and experience of multiple partners all striving for the same goal. Collaboration can no longer be considered a potential strategy: It’s often the most critical factor for long-term competitiveness and success in today’s crowded marketplace. By embarking upon collaborative endeavors, entrepreneurs have the ability to develop solutions to real-life problems through leveraging resources, experience and creativity.
Some of the most complex fraud and embezzlement cases were instigated by a seemingly innocuous business partner. In order to avoid these problems, it’s advisable to perform a background check and credit history. Before forming a new partnership, experts recommend placing specific legal structures that outline the expectations for each partner. Structuring the firm as a corporation or LLC is generally a wise move. Every aspect of the business – from insurance contracts to bank accounts – can then be executed under the business’ name.
Talking to a knowledgeable professional is the first line item in a master plan. An attorney can draw up an operating agreement that delineates each partner’s responsibilities and areas of expertise. A document such as a shareholder agreement clearly defines the process for dissolving the partnership. There are written legal documents like non-solicitation and non-compete agreements that may also prove beneficial.
Collaborations are bound to face challenges from time to time. Keeping a level head during the early stages can prevent trouble further down the line.