To Partner or Not to Partner…That Is the Question!
Dr. Lawrence Kaufman’s program on “Creating Successful Partnerships” was not for the faint of heart.
It was loaded with plenty of caveats…
- Do due diligence
- Get references of other companies that did business with your prospect
- Haste makes waste. Looking for a strategic partnership takes time. Don’t shortchange the process.
- Understand the “Big Issue: Control.” If you’re a startup entrepreneur and you bring in a VC, know that control (typically) goes to the one with the gold.
- Beware of the Other Big Issue: Handling IP! What happens if something is invented later in the partnership? Who owns the patent?
- Leave the lawyers out of the equation in the beginning. There is a time and a place for legalese.
Tips on crafting the agreement…
- Identify the point people. Are they rational? Reasonable? Can you work with them?
- What is the structure? (Joint Venture? Distributorship? Third Party?) How is the structure going to help you achieve the goals of the partnership?
- Regarding Exclusive Agreements: Give away as little as possible to get the partnership that will benefit you the most.
- Do you have a champion who will go to bat for you? (Read: Will your champion be willing to break the rules?) (This is especially important if you’re an intrapreneur within a big company who is seeking an external partnership. The champion is usually a high ranking executive but not the CEO.)
- Begin with the End in Mind. Know exactly what you need/want from the partnership before you entertain the idea of forming one. Then hold fast to that vision.
A word or two about success…
Dr. Kaufman made it clear that successful partnerships are not “easy to come by, but if you find one, it can enhance your business and bring huge success.” Most successful partnerships are founded on these principles.
- Your goals are aligned and well-articulated in a strategic meeting before you agree to enter into a partnership.
- Both parties trust and respect each other.
- Both parties have the ability, desire, and willingness to work out issues that may arise during the partnership. (A positive, open, win-win attitude is key.)
- You both agree on the measures of success upfront.
About the Speaker: Lawrence Kaufman
Dr. Lawrence Kaufman is a business leader with C-level experience in a wide variety of technology-based firms. He is currently an advisor to UNC, Inc., Interim Operations Officer for GeoGo, and an advisor to Blopboard, Inc. He was a director of MEMSIC, Inc., a public company selling MEMS-based systems and with operations in Wuxi, China. He was also a co-founder, CEO, and director of Sionex Corporation, an early-stage company producing proprietary miniature chemical detectors. He earned a B.S. in physics from Rensselaer Polytechnic Institute and a Ph.D. in solid state physics from Tufts University.
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