5 basic things to do when partnering with a foreign company

When considering having a foreign company as your partner, you would probably think of the tremendous and impactful possibilities that come with a broader market reach, exposure, and profit-making. As undoubtedly exciting as it is to have potential partners, it is crucial to ensure that you start right.

Firstly, be sure you have meticulously prepared your Mission statement, Vision statement, and Core values. Although preliminary, these go a long way in defining what your company stands for and seeks to achieve. Do not rush it. Keep in mind that your potential partners would want to know these critical aspects about your company before any partnership. Register your company upon completion of these key aspects of your business. Depending on the business structure you are registering, you may require a board of directors. Be careful when selecting; choose people that identify with your core values, people with experience and integrity. It is important to note that if this part of the business is shaky, your company might struggle to survive, let alone succeed.

Do Your Research

Now, it is time to do your research. Who is this company you are seeking partnership with? What is their vision and mission statement? What are their core values? Do they live up to their vision, mission, and core values? What is their history and their partnering history? Who are their stakeholders and shareholders? Who are their known business partners? Are there random people who can testify about their work ethic? What is their culture? These are a few aspects to research before you make a decision.

Why? Why? Why?

My dad consistently racked me with these questions whenever I wanted to do something. He would say: “Boy, is it urgent or important? Not everything important is urgent”. Anytime he said that, I had to rethink to be sure I was doing the right thing at the right time. The emphasis here is on timing. Now that you know your potential partner, carefully consider why you want to partner with this company. Ask yourself: “Is it important, or is it urgent?”. I personally witnessed a friend waste four years of his time in a partnership. The problem was not the foreign partners. However, I think if he had not rushed things, he would have done better, and the company would be in existence today.

Read the Contract

Once you have answers to those critical questions and have decided to proceed with the partnership, smile. Both parties may draft a Memorandum of Understanding (M.O.U) at this time. Take your time to read carefully and modify the document to suit your needs and abilities better. It is essential to highlight your modifications so your potential partners can spot all changes made. It is important to note that rushing this process could be disastrous. Do well to get a legal professional to review the documents with you to ensure there is no loophole.

Constantly Evaluate & Hold Your End of the Bargain

Now that the partnership is official, hold your end of the bargain. Be diligent and proactive, and communicate effectively to build trust and reliability. Take time to go through the M.O.U as often as possible to ensure that you are performing as promised. It is also your responsibility to hold your partner accountable in the business at all times. Be transparent and communicate challenges and victories with your new partner. Integrity is of utmost importance. Be transparent with transactions and keep all aspects of the business and processes well documented.

Don’t be surprised to see others wanting to work with you.

Leave a Reply

Your email address will not be published. Required fields are marked *