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Developing Effective Strategic Alliances

Know thyself. Take the time to thoroughly analyze what you desire from a strategic alliance. Make sure your intent and expectations are realized and addressed in a written agreement.

Avoid using the term partner, particularly in written documents including marketing materials. There is a very specific legal connotation of partners and partnerships, and it exists even without a filing with the Secretary of State.

Understand the language. Some of the "contract" terms you need to be familiar with include limited liability, indemnification, joint and severable liability, and liquidated damages. Be sure you understand the ramifications of incorporating mediation and arbitration language into an agreement.

At the beginning, talk about the end. There are two topics that are difficult to discuss at the beginning of any relationship — (a) what should be done if something goes wrong, and (b) what's the best way to sever the relationship. These issues need to be addressed in a written agreement. You have a better chance of salvaging a relationship if you can refer to pre-specified conditions and approaches to resolution.

Protect the corporate veil. Be careful how you sign an agreement. You should always sign in your official capacity on behalf of your company. Depending on your business entity, you may be able to circumvent giving a personal guarantee.

Seek legal advice. Many entrepreneurs avoid this important step. There is a common concern that if they introduce a legal agreement they will alienate the other person. Legal agreements can and should be user-friendly documents that define the specifics of a mutually beneficial relationship. A solid agreement will define your business relationship, protect all parties involved, and set forth remedies for conflict.

Use a multi-discipline lawyer. Find a lawyer with a strong business background and, ideally, one who has a solid understanding of sales and marketing. These skills ensure you will receive sound business advice, not just legal advice. Consider the legal fees an investment hedge against big headaches, not an unnecessary expense. Another plus is that once you have created one of these agreements you may be able to use it again and again with minor modifications.

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Entrepreneurs and corporate executives check the thousands of articles, the weekly "Tuesday Report," and the "Contacts Section" of our site. They use the latter to find barter companies with which to do business. Is your barter company's listing up-to-date? To keep your listing current is very easy. See the links below to (A) update any changes to your company's listing, such as new location, phone number, web site or other information, and (B) if your company has not been listed. Here's how to get on board: To make changes to your listing click here. For new listings click here. * * ANNOUNCEMENT * * We have packages of back issues still in print, approximately 30 issues in all. To order: Click here (Advertisement) How To Get More Sales In Hyper-Competitive Restaurant Industry Our street-smart restaurant marketing report shows proven ways to rapidly boost your restaurant's sales & profits. More--> The Growth and Use of Secondary Capital (New Money) Creates Unprecedented Wealth In Today's New Age Of Possibility There are many forms of secondary capital — which can be defined as any financial instrument that measures and communicates value in a common language. Would you like to see and learn more about the many forms of secondary capital?  We have 70 free, informative and inspiring, articles for you in our "Secondary Capital Section." Check it out... www.barternews.com/secondary_capital.htm. Get New Money-Making Ideas And Valuable Contacts! You can obtain useful, informative ideas and contacts in every available back-issue of BarterNews. Every barter company in the world is listed on our web site, click through to our Global List of Barter Companies. We welcome your comments, questions, and observations. Copyright BarterNews 2014. Redistribution of BarterNews content expressly prohibited without the prior written permission of BarterNews.