documenting partnerships in your business plan 2
Forging partnerships to advance marketplace penetration has alter to commonplace, particularly for “advanced economy” businesses. And, most companies proudly mention their abounding partnerships in their bag plans.

The actuality is that, regardless of whom the association is with, partnerships by themselves are meaningless. What are meaningful are the terms of the association. For instance, while it sounds abundant to accept a association with a Fortune 500 company, the details of the association are what investors acquisition big. For instance, investors will attending poorly upon a association in which the Fortune 500 company earns 90% commissions on customers it refers. On the other hand, investors would attending favorably upon a added equitable association.

As such, be sure to detail the specifics of the partnerships. This includes factors such as how the association will assignment, payment terms, contract length, minimum and/or maximum guarantees, the type of customer leads expected from each partner, timing of payments, etc. In addition, if partnerships are a answer allotment of the bag aim, expect prudent investors to interview the partners and scrutinize association contracts.

Partnerships can be a above agency in the accomplishment of growing companies, providing leads, sales, chief and/or other critical benefits. However, ventures should be careful not to abode too much stress on any one partner in their bag aim. Association agreements, according to other legal agreements, can be breached, and if the adventure positions any one partner as critical to its accomplishment, this will alter to a risk agency to investors.

Overall, partners can accommodate a abundant boost to growing ventures. Bag plans should not alone altercate who the partners are, but detail the terms of the partnerships and how they will statement the company. Finally, the bag aim must not abode too much stress on any one partner in adjustment to convince investors that the bag is capable of accomplishment even without it.

About the author:
GT Bag Plans has developed over 200 bag plans for clients that accept collectively raised over $750 million in financing, launched abundant advanced product and service lines and gained competitive advantage and marketplace share. GT Bag Plans is the sister site of GT Adventure Chief





Originall posted December 3, 2011