-- Feature Article: Is a Business Partnering Arrangement Right for You?

-- Note from the Author: Build Your Momentum!

-- Special Message: Consider the Benefits of Support Networks

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Build Your Momentum!

Do you ever have those days where you take two steps forward and one step back? I know I sure do! Sometimes I find myself going through cycles, especially when I'm learning new skills or venturing into new markets. Every advance seems to be met by some kind of challenge, whether it's a technical setback; time limitations; or a lack of patience, knowledge, or experience.

So, I've invented a new mantra to repeat to myself whenever I'm expecting inconsistent progress, but find that I am actually getting results: "Build momentum!" That means acknowledging the forward movement and firmly digging a new foothold as I push off to the next step.

Building momentum can sometimes be much easier when sharing the trek with partners, collaborators, and support networks, who can advise or otherwise help us balance the load and reach uncharted territory much more quickly and easily.

For these reasons, I hope you enjoy today's features, including the article, "Is a Business Partnering Arrangement Right for You?" And please join the conversation by leaving your comments on my blog!

Here's to your business prosperity,

Adele Sommers, author of the "Straight Talk on Boosting Business Performance" success program

P.S. If you missed any previous issue, visit the newsletter index!

Consider the Benefits of Support Networks

If you're looking to bolster your business decision-making or gain a wealth of new ideas, consider joining or forming some type of support network. One of the most common is the "master mind" group. Popularized by Napoleon Hill, the author of the 1937 classic "Think and Grow Rich," the centuries-old practice of creating master mind alliances has become intrinsically linked to business achievement. Its hallmarks include candid exchanges of ideas and viewpoints, where the members give each other a helping hand as they explore new business frontiers.

Master mind encounters involve a structured protocol and a deeply shared value system. The members typically have complementary or similar interests and goals, and bring forth a strong aura of diversity in their backgrounds and viewpoints. A group may contain three to seven people, or even more.

Many master mind groups seek members who are interested in long-term commitments to the higher purpose of the group. Thus, people looking for a "quick fix" idea or a few pieces of advice aren't truly ideal candidates, and would probably be better served by an occasional lunch with trusted friends.

If a master mind group seems a bit out of reach, consider these other alternatives:

R&D teams. Research and development teams can operate inside or outside of an organizational structure. They act as a think tank, providing feedback and strategic input for designing, developing, testing, and refining something. Unlike master mind groups, however, members might not interact directly with one another; they might provide comments or critiques to a particular team leader or author periodically, for example. Thus, their contributions are uneven and based on their personal interests.

Special-purpose exploration groups. These are people who meet to investigate their mutual interests and possibilities for cooperating or collaborating. They may or may not continue their interactions after the initial exploration has run its course.

Mentoring, coaching, and advising. People seeking a particular vein of guidance might meet periodically with a teacher, mentor, coach, or a board of advisors.

Project support partners. Creating a buddy system with a friend or colleague to exchange project or business advice can help maintain the momentum for both.

Developing the perfect support network can take a bit of work. Parties who mirror your values and are qualified to meet your particular needs can be difficult to find. Once you identify them, however, they can enrich your life immeasurably. Why not make this the year to expand your support network in new and dynamic ways?

Is a Business Partnering Arrangement Right for You?
by Adele Sommers

Many people arrive at a crossroads in their businesses when they recognize a lucrative option to join forces with other like-minded professionals or organizations.

Partnering arrangements can range from informal to formal. But in all cases, the parties should strive to carefully consider the circumstances, conditions, levels of compatibility, points of integration, and desired results. This article suggests three stages for moving from the informal to the formal ends of the spectrum.

A Helpful Starting Analogy...

Imagine two pieces of fabric. On the informal end of the partnering continuum, where you're collaborating with another party without changing the structure of your business relationship, you can more or less "sew" the edges together (or use snaps or velcro) to form a seam. That way, it's simple to reopen the seam if and when you decide to part ways, and each piece of fabric retains its original characteristics.

On the formal end of the spectrum, however, where you're truly merging business identities, you're usually aiming for much deeper levels of integration.

Going in, the process could resemble unraveling the individual threads of both pieces of fabric and then reweaving them into something new. Not only is this more involved than simply sewing a seam, but it's also more challenging to undo later if you decide to separate.

When arrangements become formal, an attorney should guide you on all matters related to choosing, setting up, or modifying a business entity, such as a partnership or corporation.

Even if the arrangements remain more informal, there are still many important things to consider, as explained below.

Stage 1: Prepare for a Leap into the Unknown

As with any ideal union, partnering arrangements should strive to blend the greatest talents, visions, and goals of each party to create a level of synergy that would not be possible to achieve independently.

But partnering also involves a leap of faith into the unknown. The more that remains unknown when the parties unite, the greater the risk of discovering an insurmountable problem.

Many see the mutual "sizing up" process that unrelated parties initially go through as similar to courtship and dating. Whether or not that process leads to "marriage" (or to "adoption," if you think of starting or enlarging a family), the age-old parental advice still applies: "Why rush? What's the hurry? Take your time and get to know one another!"

Becoming better acquainted could mean developing a set of "business success criteria" to assess your prospective partners with much deeper insight, and thereby set the conditions for successful endeavors.

Why is this so important? To avoid wandering into partnerships opportunistically, just because they're available and convenient, we want to be able to recognize the types of people and arrangements that truly fuel, inspire, and complement us. Our "score cards" for the traits of potential partners might include:

• Alignment with our core visions and values
• Compatibility of communication and working styles
• Appropriate mix of overlapping and complementary strengths

Stage 2: Consider Your Readiness to Merge

As you continue moving along the continuum from "dating" toward "marriage," you will be taking a giant step that will have significant, long-term effects on your lives. You're essentially preparing to blend identities and jettison aspects of your previous independence in favor of a new interdependence. Ask yourselves...

• Do we know one another (and ourselves) inside out?

• Do we have compatible visions, values, goals, and priorities?

• Do we have compatible decision-making and problem-solving modes?

• How exactly will our operational processes dovetail? How will we work together seamlessly?

• Do we have a way to ensure that we won't become mired in gridlock? Will someone in the business be able and willing to call the final shots on difficult decisions after others have weighed in?

• Have we determined that we cannot work as effectively in any other mode -- that no other business arrangement is as compelling?

• Do we fully understand the implications of sharing business equity with other parties? (Be sure to request detailed advice from your attorney on this.)

Are there alternatives? Below are some other options you might consider before, or instead of, undertaking a formal business restructuring:

• Become affiliates, such as when selling products, where you could use the built-in affiliate modules of online e-commerce systems to keep track of your activities. The features of such systems manage the bookkeeping aspects by automatically totaling commission accruals (revenue splits) and enabling the affiliates to track their own earnings. This could potentially work as well for providing a service as for selling a product.

• Contract or employ each other's services to keep your operations separate and distinct as you try out projects together. If offering a service to clients, for example, you could each invoice the clients separately, or one party could act as the primary interface and the others could sub-contract their services under that party.

Only if and when you know you are ready, proceed to Stage 3, below.

Stage 3: Think through the Formal Aspects

Formal business agreements serve to codify the decisions regarding partnering arrangements. Each type of business structure has its own rules, and you should consult an attorney to help you weigh the pros and cons and draft or review agreements. In any case, some basic things to consider and discuss with your attorney include:

• Who the partners are, and what each brings to the table. What do they plan to do together in business?
  
  
• Where, and for how long, the partners intend to be partners.
  
  
• How will compensation, expenses, and debts be handled? How will revenue be shared?
  
  
• Where will funds will be stored, and what record keeping, auditing, and insurance will be needed?
  
  
• What are the partners' obligations and constraints?
  
  
• How can any partner exit the arrangement voluntarily?
  
  
• What happens if a partner must exit unexpectedly (e.g., via accident, illness, or death)?

Copyright 2008 Adele Sommers

"Think and Grow Rich" by Napoleon Hill

Isn't this a good time to buy, borrow, dust off, or otherwise get a hold of this 1937 masterpiece?

With original and updated versions available in paperback, audio CD, and a no-cost digital download format, you can easily enjoy the 16 important lessons Hill learned while spending 20 years of his life interviewing scores of successful people. He embarked on this endeavor in response to Andrew Carnegie's original request to document the "secrets of wealth building" and bring the formula to the men and women of the world.

Among Hill's most famous research discoveries was the power of master mind groups in helping people brainstorm pathways to enormous success.

Adele Sommers, Ph.D. is the author of "Straight Talk on Boosting Business Performance" -- an award-winning Special Report and Workbook program.

If you liked today's issue, you'll love this down-to-earth overview of how 12 potent business-boosting strategies can reenergize the morale and productivity of your enterprise, tame unruly projects, and attract loyal, satisfied customers. It's accompanied by a step-by-step workbook designed to help you easily create your own success action plan. Browse the table of contents and reader reviews on the description page.

Adele also offers no-cost articles and resources to help small businesses and large organizations accelerate productivity and increase profitability. Learn more at LearnShareProsper.com.

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