Drug testing

Documenting Partnerships in Your Business Plan

Forging partnerships to improve market penetration has become commonplace, particularly for "new economy" businesses. And, most companies proudly mention their many partnerships in their business plans.

The fact is that, regardless of whom the partnership is with, partnerships by themselves are meaningless. What are meaningful are the terms of the partnership. For instance, while it sounds great to have a partnership with a Fortune 500 company, the details of the partnership are what investors find important. For instance, investors will look poorly upon a partnership in which the Fortune 500 company earns 90% commissions on customers it refers. On the other hand, investors would look favorably upon a more equitable partnership.

As such, be sure to detail the specifics of the partnerships. This includes factors such as how the partnership will work, 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 key part of the business plan, expect prudent investors to interview the partners and scrutinize partnership contracts.

Partnerships can be a major factor in the success of growing companies, providing leads, sales, capital and/or other critical benefits. However, ventures should be careful not to place too much emphasis on any one partner in their business plan. Partnership agreements, like other legal agreements, can be breached, and if the venture positions any one partner as critical to its success, this will become a risk factor to investors.

Overall, partners can provide a great boost to growing ventures. Business plans should not only discuss who the partners are, but detail the terms of the partnerships and how they will benefit the company. Finally, the business plan must not place too much emphasis on any one partner in order to convince investors that the business is capable of success even without it.

Since its inception, Growthink Business Plans has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com or download our free Business Plan Guide.

limousine chicago service
In The News:

Franchises - A Proven Business System

Franchises offer the first time business owner a proven and... Read More

The Reluctant Entrepreneur

It seems odd to think of a person opening a... Read More

Franchises - Emotional Fulfillment - The Challenge

Does A Franchise Meet Your Needs?Do you look forward to... Read More

A Startup Never Closes

When it comes to a startup, the luxuries shared with... Read More

Entrepreneurial Business Plan The Down And Dirty Way

Does the idea of running your own business sound exciting?... Read More

Is Now the Right Time to Become An Entrepreneur?

A number of economic changes are magnifying the role of... Read More

The Fear Factor

I recently conducted a lil' survey asking my colleagues what... Read More

Do You Have What It Takes To Be An Entrepreneur?

Q: I am interested in starting my own business. I... Read More

Focus is the Key to a Successful Startup

The definition of a startup means you have very few... Read More

Territory Limitations Policies for Franchised Companies

All franchised companies must have Territory Limitations to maintain the... Read More

Raising Entrepreneurs: What to Do When Your Kid is Born to Think Differently

Adolescence brings with it many challenges ? for both parents... Read More

Entrepreneurial Traits that Drive Sales

Frequently overlooked and hidden deep within our marketing tool box... Read More

Entrepreneurs - Your Well Being Should Come Before Profits

I believe the spiritual aspect of life, especially to entrepreneurs,... Read More

Drive Website Traffic Unconventionally, Force Your Children To Do It

If you believe that every little bit helps then keep... Read More

Isnt it Time You Started to Fly?

I am going to begin this article by sharing a... Read More

Applying The Daffodil Theory into Business Practice

At times all of us need a bit of inspiration... Read More

Starting Your Business By The Book

I've gotten several questions recently about the legalities of starting... Read More

Coating Service Business Case Study

There are many coating businesses in the market today, but... Read More

Securing Second and Third-round Venture Capital Financing

Widget sales are booming ? the competition is scrambling, demand... Read More

Four Steps to Entrepreneurship

As more and more people start or consider starting their... Read More

Oil Change Guys History; Part II

Franchise companies are not born they are made and when... Read More

What Makes An Entrepreneur Tick?

It is only natural that when you start a business,... Read More

An Entrepreneurs Biggest Cost

When launching a new product or company, an entrepreneur must... Read More

What Makes an Entrepreneur?

Rupert Steiner in his book 'My First Break' attempted to... Read More

The Risks of Entrepreneurship

The "spark" for many entrepreneurs is seeing an opportunity that... Read More

led light bulb replacement wind power street lights Pete's produce ..