Kinds of ways to look for Business partners
Association of companies that can really complicate a relationship. Certainly require special negotiations. There will be issues on which both parties agree not serious. In this era of partnerships, alliances and joint ventures, the need for skilled negotiators is more important than ever. Association of companies that can really complicate a relationship.
Benefits and contributions will involve sharing requirements unknown or uncertain. Association of undertakings requires assumptions – many of whom will be wrong. There will always be an imbalance of power between the two parties in the distribution of benefits and contributions. The formulas of law must be negotiated.
- What are acceptable labor, overhead and profit?
- Or the supplier sells the new designs, techniques, software and components to a competitor?
- When a party gets in trouble what happens? Who collects the job? The cost?
- What accounting system used? Each party has the right to audit the other?
- Or How to handle the changes? With a price? Rejected or accepted?
What further complicates this type of negotiation is that the negotiators of the original company established in partnership with forward rate. Project managers, engineers, technicians, sales personnel, and operational staff then have the responsibility to do the job of risk. This requires hundreds of negotiations and renegotiation on the life of the company.
Things often go wrong, or do not provide the expected results. One of our customers have told us about an association that has with a foreign company to offer software services, information technology and engineering. The initial agreement was based on a set of assumptions that the company would also be profitable for both companies, based on a division of labor within the next five years. Not long into the project, our client realized that the formula would not work an equitable division of benefits. Using a sophisticated trading approach, were able to successfully renegotiate the agreement. Modified work assignments to assure each party will share the benefits originally envisaged.
Those who are more open to negotiating his displeasure often based on two assumptions: (1) on each side must tell the other everything, and (2) both parties in a company instinctively be fair and reasonable. I believe that these assumptions are quite naive – particularly in partnerships.
There are plenty of people who will not tell you everything you want to know. In most business transactions, there will be issues that require difficult negotiations. People who say “put everything on the table” even in a society are simply being naive. There are two important features of any good negotiator, tact and discretion. A negotiator must think, do I say? How should I say? When should I tell? And in the association, which I compare to a good marriage, there are things I say, the things I say in part, the things I say later, and the things I never said it would only cause tension.
In a reversal of roles of partnership. Participants become contract managers and relationship managers, not just buyers, sellers, designers and engineers.
And there will always be problems of disruption of the partnership. Once the marriage ends, there must be a divorce. What happens in the end? How are fixed costs? There is a non-compete clause to protect the secrets and techniques? What’s trademarks, copyrights, patents, tools, security, software, designs, drawings, data, customer lists?
