In certain circumstances we share risk with our clients by forming business partnerships wherein our clients
-
obtain our services at a cost reduced from our standard; and
-
we receive a percentage of future sales of the product, or some other negotiated remuneration.
Although we have had several successful partnership agreements to date, we enter into them with a certain amount of caution and due diligence, and encourage our clients to do the same. We know that core values and company cultures need, at the least, to be synergistic.
For us: Partnership means betting on the come. We reduce our margins and trade a sure, small, immediate profit for the opportunity to score a substantially larger gain in the long term.
In fact, we are investing in your company, so we need access to the same information (business plan, financials, management team) and conversations that you would have with any investor (VC, angel, company, friend).
We need to understand the power of your idea, strength of your management, scope of your market and your marketing skill, your sales plan, and, most importantly, the sustainability of your passion and your ability to execute.
For you: Partnership means the opportunity to conserve cash by reducing costs at the front end and a willingness to share your financial success later on.
In fact, you are taking on an operational partner, one whose vested interest parallels your own and who is willing to share its business expertise beyond development.
|
