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Partnering is a good small business growth strategy. But, it's not a quick
fix for your ills. It's a long-term visionary strategy that you and your
company must commit to. Here's a checklist to ensure partnership success:
Does this potential partner have an equal amount to offer the partnership?
Is their customer base as large or larger than yours?
Do they reach customers during your slow time?
Do they have resources you don't have - for example, database retrieval
capabilities? Or an expert who can demonstrate your product with theirs?
Are they willing to sign a contract/agreement that explains the details
of the partnership and how the partnership will be dissolved if it is not
mutually satisfactory? |
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If you're planning to hire a consultant to help your company, here are a
few points to consider when you draw up a contract or "letter of
agreement":
Who does the contract apply to? The legal names of both parties should be
listed.
What services will be done? Make sure the consultant's duties are spelled
out very specifically. If it's vague, you might not get what you want -
only what the consultant thinks you want.
Term of service. Start and stop date of consultant's service should be given.
Fees and payment schedule. The letter should list the base fees and
incentive payments, if any, that the consultant will be paid. Also list the
agreed-upon payment dates.
Expenses. Decide if you will pay for related expenses in addition to the
service fees, then put it in writing.
Support services. If you agree to provide office space, secretarial
assistance, telephone service and other aids, put it in the contract.
Have an attorney review the final document. You'll want to make sure
everything in the document is legal before you let your consultant review
and sign it. The attorney may also suggest needed clauses, such as
consultant's employment status, consultant's use of subcontractors, and
confidentiality of your business practices and client lists. |
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If you're thinking of moving your business, choosing your new location may
be your toughest decision. Here are tips to help you select the best site
from your customers' or clients' perspective:
Know your target market - what products will you sell, and to whom will
they appeal? Plan your location accordingly.
Visibility. Find a place where your business will stand out. Avoid being
too close to a larger business like a department store - you might live off
the overflow, or you might be ignored.
Know the competition. Research the neighborhoods you're considering. See
if there are existing businesses providing exactly what your business will;
see if there are other businesses doing unusually high sales in an area
that isn't their specialty but would be yours. Also consider the
possibility of future competitors moving into your area.
Be aware of future development. Make sure that the neighborhood won't
undergo a major change that will take away most or all of its benefits.
Conversely, a not-so-appealing area might be a gold mine if it is slated
for re-development.
What's the area's image? The location should fit your budget and company
image. Being in too-expensive an area can kill your bank account; placing
your business in a "unique" location can make it stand out from the other
companies.
Convenience. Is the location easy to find? Is there plenty of parking? Is
it easy to access from the street? Take note of landmarks that will make it
easy for you to give directions, and easy for customers to get to your
front door.
Consider size and cost of space. Consider the room needed by your
employees to work efficiently, the records, equipment and inventory you
have to house, and the overall visual effect you want the place to have on
customers. A space that's too large can make the store look empty even when
fully stocked; a jam-packed building is an eyesore and a customer turnoff.
Consider neighboring businesses. Locate near complementary - not
competing - businesses or services. Locating near certain businesses can
increase your exposure to potential customers.
Review your lease. Before committing to a location, consider how long the
space has been empty and who occupied it last. Check with building and fire
inspectors to see if the place has been cited. Make sure heating, air
conditioning, interior and exterior lighting, and the roof are all in good,
working condition. |
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