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Leveraging partnerships

Written by: K K Mookhey

Article Overview: If you're just starting out, or even if you've been in business for quite some time, the value of partnerships cannot be discounted.

Leveraging partnerships

If you're just starting out, or even if you've been in business for quite some time, the value of partnerships cannot be discounted. When we were starting out, we were completely unknown entities, but because we knew our stuff, most of the projects we did were sub-contracted by larger companies. As a consulting firm, we started by working with other slightly larger consulting firms, then biggers ones, until finally we were being sub-contracted work by the Big 4. Another important use of partnerships is for overseas business. Being based out of India, offers us the cost advantage, so we can talk to overseas partners to get us business, and then outsource it to us. Just that the specific line of consulting we are in, involves senior management, so it's not always easy for an overseas partner to sell Indian consultants. But as the client base expands, and the expertise grows, this becomes much easier.

The first place to look out for partners is among your competition. It doesn't hurt to drop them an email saying they can outsource work to you should they fall short of resources. Next you could look at larger firms who do work in a number of areas, one of which is your niche. They're always ready to outsource work if you can deliver on one or two assignments. Thirdly, you could network in industry associations or meetings. I am terribly bad at doing this. But there was one time I attended a conference, and at tea managed to start talking to someone. Turns out he worked for one of the larger audit firms, and they were interested in our niche services for their clients. What started out with a casual conversation ended up giving us business worth millions of rupees. One of the employees who worked at this audit firm left them and went to work for one of the Big 4 in the Middle East. He then introduced us to the head of practice there, and we got further business from them.

Partnerships save you the trouble of the sales cycle, they save the headache of explaining to a billion-dollar organization how you as a 2-person consulting firm could provide them good service, it keeps the bread on the table, gives you the experience, and helps you build the contacts to get some initial traction going.

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Article Tags: audit firm, audit firms, casual conversation, consulting firm, consulting firms, contracted work, cost advantage, email, entities, indian consultants, industry associations, larger companies, niche services, overseas business, overseas partner, overseas partners, partnerships, quite some time, rupees, senior management



Related Forum Posts
Re: Advice Wanted - [quote="tobuso":3urnktbh]I keep saying this but I have to say it again. I dont like partnerships. Any family money should be a know donation to you before hand. Borrowing from family is one of the worst most stressful things you can do. I would have to know more to give any real advice but be careful with partners. If you do decide to take on a partner make sure you get a good business attorney.[/quote:3urnktbh] It sounds like you've been burned in the past by partnerships Philip!
Re: Advice Wanted - [quote="Evan":kxm5e9jd][quote="tobuso":kxm5e9jd]I keep saying this but I have to say it again. I dont like partnerships. Any family money should be a know donation to you before hand. Borrowing from family is one of the worst most stressful things you can do. I would have to know more to give any real advice but be careful with partners. If you do decide to take on a partner make sure you get a good business attorney.[/quote:kxm5e9jd] It sounds like you've been burned in the past by partnerships Philip![/quote:kxm5e9jd] I follow Dave Ramsey when it comes to money and business. If you take no loans it takes longer to get there but when you make decisions they are the best most thought out that they can be. When you make decisions leveraged out to the max they are usually not the right decisions long-term. If you take on a partner 50/50 you have to think about everything. What if they die? What if they sue you for not doing your part? What if they embezzle? There are a million of these questions when you have a partner. Loans are OK but I would still be very weary and make sure you KNOW not think but KNOW you will make a multiple based ORDERS before you take a loan.
Creating Partnerships - Does anybody have ideas for how new companies can create partnerships with other companies to quickly build their businesses? I've heard a lot about joint venturing to success. Do you have any examples?
Re: How Are You Financing Your Company? - I finance my business almost entirely out of profits from my business. But I typically don't have a lot of business expenses. Mainly just domains, hosting, a few membership sites, and some other things here and there. On the rare occasions when I need more I tend to use partnerships whenever possible or I get out the credit card.
Re: Expanding to the US? - Hi again DCM Convert, I think BizLaunch will be expanding their small business training services to the US later this year with the help of Staples Business Depot, their current strategic partner. Have you considered forming any strategic partnerships or joint ventures with related businesses in the US?


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