Crazy Secrets to Closing Partnership Deals that Big Players Dont Want You to Know

Dear Founders,

In today’s newsletter, I unravel the secrets behind closing big partnership deals that seasoned startup players might not tell you.

But first, why do partnerships matter so much?

Because strategic partnerships can account for over 40% of your startup’s annual revenue.

But don’t take my word for it. Here are some industry stats on it.

• 95% of Microsoft’s revenue flows through its partners.

• Shopify’s partner ecosystem generated over $6.9 billion in 2019. 

• Channel partners in Japan contributed to approximately 40% of Zoom’s Japan business in 2020.

While there's no one-size-fits-all secret to closing big partnership deals, Blackcrest has put together the top strategies that successful businesses employ to close deals and win the market.

1. Thorough Preparation:

Before entering the negotiation room, you should arm yourself with in-depth knowledge about your potential partner. Understand their industry dynamics, recent developments, and pain points. Your commitment to thorough preparation sets the stage for a well-informed and compelling partnership conversation. You should in particular know the following:

• Your future partner’s customers.

• Your future partner’s business model and cost structure.

• Your future partner’s adaptability - how well have they performed under uncertain market conditions?

• Your future partner’s business reputation and

• Your future partner’s current needs.

The more you know about the company you intend to partner with, the better.

2. Build Business Relationships:

Beyond the boardroom, successful partnerships are often rooted in strong relationships. You can meet potential partners by attending industry events, engaging on professional platforms, and sharing industry information to support other professionals. Trust and understanding go a long way in establishing a foundation for fruitful collaborations. If you want to build business relationships that will profit you in the short and long term follow the following rules:

• Never ask for a deal upfront, add value first.

• Have a proposal template for the partners in your industry at all times

• Always respond within 24 hours

• And never break a promise.

Do this and all the people who you have brought into your business network will stay with you.

3. Craft a Value Proposition That Stands Out:

Always communicate the unique value your startup brings to the table clearly. Showcase how your collaboration can address the partner's challenges or contribute to their growth. Tangible examples and data-driven insights strengthen your value proposition. To make this easier to do, document the work you did for your previous clients and use the most successful ones as case studies in your portfolio, have a designed company profile ready to go and always emphasize the difference between when you started working with your clients and after you worked with them.

We recommend our partner Osita’s “A Note on Business Resilience to Nigerian Founders” for more insight on how to craft a great value proposition in a proposal to a potential partner.

4. Master the Art of Communication:

Master the art of communication. Clearly articulate your proposal and actively listen to the needs and concerns of potential partners. Effective communication fosters understanding and demonstrates your commitment to a mutually beneficial relationship. Don’t write vague sentences in your proposal. Be as clear as possible in what you will do and what the partner has to do.

5. Have Flexibility and Adaptability in Your Partnership Approach:

Negotiations are dynamic processes. Stay flexible and be prepared to adapt your proposal based on feedback and context. A willingness to find common ground and adjust to evolving needs showcases your commitment to a partnership that works for both sides. For negotiation techniques, you can read “Never Split The Difference” by Christopher Vos and Tahl Raz.

6. Include Incentives in your proposal:

Ensure you develop a deal structure that offers benefits to both parties. Crafting a win-win solution fosters a collaborative spirit and lays the foundation for a long-term, successful partnership.

7. Mitigate Business Risks in the Partnership:

Always ensure you address potential concerns and risks early on. A well-thought-out risk mitigation plan instils confidence in potential partners and showcases your commitment to a secure and sustainable collaboration.

8. Legal Expertise:

Engage legal experts like Blackcrest LP to ensure your agreements are watertight. A well-structured and legally sound contract is fundamental to the success and longevity of any partnership.

9. Share Your Success Stories:

Try to share success stories from your previous collaborations. Demonstrating tangible results and positive outcomes builds credibility and instils confidence in potential partners.

10. Excercise Patience While Negotiating:

Closing big deals takes time. Patience, persistence, and a commitment to finding common ground are essential for navigating the complexities of partnership negotiations.

Remember, closing significant partnership deals can be a game-changer for your startup, so work hard at creating the business networks you need, to pull this off successfully.

I am rooting for you.

Best Regards,

Osita,

Blackcrest LP

PS: If you have any questions or enquiries just reply to this email and I will respond within the hour.

BlackCrest LP is a startup-focused law firm that can support you with business registration, data protection compliance, investment advisory, tax advisory and general legal advisory.