In addition to increased efficiency, broader offerings, and shared workloads, business collaborations can offer countless benefits to both parties. The key is forging the right partnerships for future profits at the right time.
So how can entrepreneurs discern which partnerships will be beneficial in the long run? It comes down to their ability to recognize the right signals. Below, 11 gotechbusiness.com Business Council members each share one green flag that entrepreneurs should look for when collaborating with another organization and why these signs could point to future collaborative success.
1. Alignment of mission and purpose
One of the important green flags to observe is alignment in values and mission. If you find that another organization shares many of the same goals and objectives as your own company, chances are they will be invested in ensuring that both entities benefit from the partnership over time. As an entrepreneur, it pays to think carefully about whether this kind of compatibility exists. – Michael Scribman, APS Global Partners Inc.
One should only look for a partnership with a company that shares its corporate values. If you’re struck by what you see as dissatisfied employees, overwhelmingly negative reviews, or a lack of solid organizational leadership, run for the hills – you’d be taking an unnecessary risk with a reward that might come with way too much pain. – Leely Strogov, AtomicMind
3. Corresponding Offers
Shared values are crucial, but only if the offerings of both companies can complement each other. The proposed outcomes of the partnership should take both companies to the next level in multiple ways. For example, the other party can increase your depth of service while you increase their market share and penetration. This kind of potential for reciprocity reinforces the viability of the partnership. – Tej Brahmbhatt, Watchtower Capital
4. Integrity and respect for your work
You can find many qualities in a great partner. They may be famous, technologically advanced, curious and generous, but if they don’t have integrity and don’t respect all the hard work you put in, then you need to run and never look back because nothing sustainable will come along the way. – Khamzat Asabaev, Soft smile
5. A commitment to partnership
An important green flag that entrepreneurs should be aware of when partnering with another organization is how invested the potential partner is in the partnership. If the other company is committed to making it work and goes the extra mile, it’s a good sign that they are sincere and want to ensure success. It is also a good indicator of their trustworthiness and commitment to mutual growth. – Eric Pam, Health channel
6. Complementary Strengths
A green flag that entrepreneurs should look for when collaborating with another organization is a shared vision and complementary strengths. When both partners pursue their values and goals and each contribute their unique expertise, a mutually beneficial relationship can develop that leads to success for both parties. – Zeynep “Z” Ekemen, Silver Defender
7. Strong expertise
Based on my personal experience, I choose people who are useful in a particular area, such as sales, business management, marketing or delivery. An important green flag is that my potential partner has strong expertise in a particular area, either personally or as a successful business. Note that mutual understanding is also crucial. – Vladislav Kraynov, MSOFT
8. A track record of success
You should look for a track record of success as it demonstrates competence and expertise in the industry. This track record can also be a strong indication that the potential partner has the skills, knowledge and experience to help your business succeed. The main reason organizations consider partnerships is to make their organization more successful, so a track record of success is critical. – Dr. Ope Banwo, Mobisoft360 Inc.
9. A similar approach to problem solving
Assuming a potential partner has excellent references, research how you both approach problems and situations. While you may both be good at what you do, if your approach and worldview differ, it could create problems in the future, especially if neither of you are willing to adjust to each other. – Zain Jaffer, Zain Ventures
10. A desire to remove ambiguity
The biggest green flag is when a potential partner is striving for the same level of clarity and alignment as you. If they’re trying to clear up as much ambiguity as possible when it comes to how your two businesses will benefit each other, it’s a good sign that they’re focusing on what’s best for both parties. – Ty Allen, SocialClimb
11. Mutual understanding of the work required
Both sides of a partnership need mutual understanding of the goal and open communication throughout the process. For example, if an entrepreneur is collaborating with another organization to develop a new product, both parties must be clear about the product vision, time frame, budget, and resources required. They need to agree on their roles and responsibilities, as well as how to measure success and share profits. – John Hadji, Top key