3.1 Building business partnerships based on e-business ideas

E-entrepreneurs often think that they have to carry out all the work or tasks of their business on their own. However, there are many other options that can be explored in order to achieve better results such as building business partnerships. But, why build business partnerships? Because at some point it is likely to need or want external support to achieve project goals or broaden horizons.

Business partnership, by definition, is a written agreement or a contractual relationship between two or more people, organization or companies, that carry on a joint business. In this relationship all partners invest their money, infrastructures or skills with a share objective. Then, they benefit from the obtained profits and take responsibility for the losses.

There are different types of partnerships and here some key points to consider before setting up a business partnership:

• Starting point: think about the real need of a partnership.
• Search for the right partner for your e-business idea.
• Confirm that you and your potential partner have similar values and objectives.
• Identify the strengths and weaknesses of each other.
• Clarify expectations and roles.
• Make sure that the gains of having a partner will be more than the costs.
• Pre-testing: start first a small project or start working together for a few
• Study the potential tax implications.
• Be ready for a partnership dissolution: have a written exit plan defining the possible scenarios.

Regarding to e-business environment, it is an interesting idea for e-entrepreneurs to search for partners with e-skills or technological partners. For instance, a web developer, a community manager or a digital marketing expert are some profiles that could fit your project. Depending on the nature of your business or the products you are going to create and offer, a distribution company could also be a good partner.