This agreement will avoid financial and legal disputes and develop a financial and operational roadmap for the operation of the business. How do you start developing the terms of your partnership agreement? If you think about who you`re hiring, let the experience be your guide. Basically, this means that the bigger, more complex an agreement, the more experience you need from your board. I`ve been very lucky with a quick online search to find startups that have partnerships with the company I`m negotiating with — then use LinkedIn to look after startup CEOs and ask for recommendations on the advice they`ve used. No matter what type of partnership agreement you are negotiating, it is important to complete your due diligence and have a plan for the operation of the partnership and the benefit of each of you. Follow these tips from 10 Forbes Business Development Council members to help you get the most out of your first partnership. The trick with partnerships is that they will give you great early distribution and revenue, but at the cost of capping your growth potential: you can`t become bigger than your biggest partner. If you`ve raised a lot of money and are shooting for the Moon, you`ll probably want to wait for partnerships later. You`ll get better terms anyway. As a small startup, you don`t have much leverage, and this will be reflected in the kind of agreement conditions you get early.
Within each partnership, there are distribution obligations. This may mean that a product is delivered physically, or it could distribute a message. Whether it`s the content or the end of a partnership, be aware of the work expected during delivery and the role of your business. Define the roles exactly so they don`t have a chaotic grey area. Make sure that the exact product is explained and that the infrastructure to support and update this product is part of this definition. You need to make sure that you know what belongs to whom before entering into this negotiation (and you`re going to want to negotiate who gets what in case of separation). This way, you don`t have to worry about a partner with valuable physical or intellectual property going unjustly to create their own store.