Whose Today’s Guest?
Natasha Omokhodion Kalulu Banda is a creative entrepreneur who is passionate about communications in Africa. She is the Managing Director (Zambia) of advertising firm 99 Cents Communications.
Partnerships in a Business
When we talk about partnerships in a business we are basically talking about individuals or businesses that come together in order to pursue common interests. Sometimes it can be a combination of interest bodies, non for profit organization, churches, schools and the government all coming together to form a partnership.
The main purpose of this partnership is that all parties involved want to pursue mutual interests and they realize that all the parties together will yield more results than if they were on their own.
Why and When to Establish Partnerships
We are beginning a new decade as we have entered the year 2020 and the rest of the world is now gearing for the industrial revolution 4, it is clear to see that one major thing that will happen in the coming years is that collaborations are going to be key. And these collaborations will be across organizations, provinces and countries.
SMEs in the first place should be getting ready to partner and collaborate as this is the way of the future. However before they begin of think of partnerships, there is need to understand who they are, what they represent as a business and what value or brand does the business plan on creating overtime?
Going into a partnership is not just a question of waking up one day and telling yourself that you want to go into a partnership. You need to know if you are ready to go into one and you are ready to share and agree on things including control so to speak.
You will need to know if you are willing to work with others or if you are better off on your own and ultimately if you are ready to grow because going into a partnership comes with a level of growth in one way or another.
Why the Relationship Tends to be Hard to Maintain
Like any other relationship, it is always exciting in the beginning but in the long run partnerships usually tend to get sour and eventually stop working. The same applies to business partnerships, in the beginning the possibilities look grand but it does not necessarily stay a bed of roses.
It is therefore important to state in the beginning whether the nature of this partnership is a long term or short term partnership or something that is formal or informal.
Secondly, business partnerships often turn sour due to the lack of clear role being defined for each party. In such a case it is better to enter into a an agreement that is clear on whose roles are what in the partnership, how the remuneration model is going to be like and if they are any incentives that are offered in it.
These are the things that need to be sorted out before going in to the partnership agreement. If both or neither of the parties are meeting these agreed clauses that is when usually we begin to conflicts and the deterioration of the relationship or business partnership.
When it comes to being burnt in a partnership, unfortunately there will always be good guys and bad guys, sometimes it may all come down to the fact that your values just never aligned and you never actually gave it your due diligence.
Another cause is that people often rush in to partnerships due to the excitement on the possibilities but it is important to take a step back and look at these things objectively and see if you can meet the obligation that is coming to you in the partnership being offered. Determine if it is something that is viable and you would be willing to stay I it for the long run.
Zambian Economy is Limited for SMEs
Many Zambian entrepreneurs believe that the Zambian economy is limited, but it is not accurate to say so as the Zambian economy has immense potential and dealing in this economy all comes down to a matter of perspective. If you want to start a business and you are looking at the economy as a limited one then your opportunities would be limited too.
But if you look at it from the other way, you will notice that there a lot of business coming into the country for so many reasons and most of them are interested in finding local partners. Often we don’t realize this and we are left with the notion that there no opportunities.
Establishing Relationships in Other Countries
In today’s era, one can create their own platforms using social media to show case what a business is doing. One can ensure that they build a consistent message and are maintaining their integrity on how the purpose of the business is communicated. From such one can be sure that people looking for a business like theirs will find it no matter the country they are based in.
Partnerships in Other Countries
This will all depend on the business perspectives if they are to achieve this, business owners can approach bodies like COMESA, SADC and The Chamber of Commerce. For a start, these are the basic places to start from if you really in tend on partnering with people in other countries. These bodies are very helpful in connecting one to likeminded businesses in other countries.
It is important to make use of such resources as these bodies are fantastic knowledge centers.
What Should be Included in a Partnership
Partnership agreements in some cases are not written but they should ideally be. Verbal agreements are just as binding as the written ones but it is mostly advisable to have them in writing rather than word of mouth.
As stated earlier, ensure that your agreement clearly defines the roles of each party, the profits and loss aspects are addressed as well as determining what is to be shared, lastly the agreement should state under which laws your partnership agreement will fall under when you are in an international partnership.
All agreements should have an exit clause embedded in them, we often forget about this but it is important in the event that you need to part ways or dissolve the partnership.
Key Insights:
- Only involve yourself in partnerships when you are sure that you are willing to partner with others.
- A Verbal agreement is just as binding as a written one, where possible always have it in writing.
- Partnerships are the future and collaborations are the key.
“Always ensure that you have an exit clause in your partnership agreement, you never know when you might need to dissolve that partnership.”
