Many businesses depend
upon the services of a third party business partner to succeed and grow. This
could include vendors, suppliers, other businesses, the government and
consultants. However, the age-old question is this: How can you get the most out
of that business relationship?
Third Party Relationships
Require A MUTUAL Commitment.
When partnering
with a third party organization, you need a level of commitment from everyone in
your organization AND everyone in the other party's group. This means keeping
the lines of communication open (especially with all decision makers), planning
carefully and meeting expectations.
8 Things To Do Before
Entering Into A Third Party Business Relationship.
If you want your
outside business relationships to run smoothly, you need to work out the details
before entering into the business relationship:
1. Get It
On Paper And
Signed: Detail and outline
all agreed upon services, procedures, parameters, marketing commitments and
deadlines. Make sure it's official, approved by both parties and also on paper
with the necessary signatures.
2. Perform A
Background Check: It's a typical
business practice to ask for references when considering a business partner.
Check their website for testimonials and follow up with anyone listed there.
Using Google, high-profile business professionals should not be hard to
find.
3. Work Out
Expense Details: Who pays for what
expenses? Expenses can include transportation and shipping fees. If you hire a
consultant, will she want you to compensate her for travel time and lodging?
Find out before you sign an agreement.
4. Check
Scheduling: Ensure that the
outside vendor can meet your schedule and deadlines.
5. Interview The
Third Party: Talk directly with
a representative of the third party. If possible, try to speak with the business
leader or CEO.
6. Keep It
Confidential: Since your third
party isn't directly employed, he is free to work with your competition unless
it's otherwise agreed upon. Even if it is, you should ensure that all third
parties sign confidentiality agreements.
7. Detail Your
Expectations: Make sure you and
the outside party's decision maker understand exactly what is expected and when.
The best way to meet expectations is to understand them AND put them in
writing.
8. Employee
Commitment: Make sure your
employees are aware of your relationship with the third party. They also need
to know what they need to do to ensure your commitment.
Executive Summary:
Working with a
third party can increase your efficiency, profits and customer satisfaction.
After finding a third party that can do this for your business, make sure you
take the time at the beginning of the process to ensure a smooth business
relationship.
It is also
recommended to confirm each other's commitments and deliverables in
writing.
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