Virtual Partnerships Expand One-Person Shops
Did you ever turn down a potential client because you didn't have all the skills needed to perform the job? If so, maybe it's time to expand your skill sets - and Rolodex.
A virtual partnership or strategic alliance is the joining of two or more entrepreneurs, free agents or other independent professionals to unite their unique skills for short- or long-term projects. The goal in setting up a virtual partnership should be to strengthen your own skills, while offering a wider array of services to your - and your partners' - client base. It's also a way to broaden your marketing circle by tapping the client base of your partners.
When creating an alliance, it's essential to recruit your partners wisely. Identify and tap participants based on their talents. They should bring non-competing skills that compliment your own and those of your other partners. Tap participants also based on the client base they serve, and their ability to bring new work to the group. If one participant is not a good marketer, they might rely on the other partners to find work - which could build resentment among the group.
You also should strive to build a bond. Make sure the participants can work together, whether in a common setting or remotely. Host a brainstorming session or introductory meeting to ensure a good atmosphere of trust and camaraderie exists. When bidding or working on a project, partners become a reflection of you and your professionalism. Make sure you know and like their workstyle.
One partner is never enough. Try to build a contact list of various "partners." This way, you can offer the best tactician based on the clients' specific needs. Also, you won't be left in the lurch if a partner is busy on another project when you come calling.
Once you've selected your partners, draft an agreement. This will include details who will do what tasks in the partnership. Revise it with each new project to address new, specific needs. The agreement should outline specifically the contracted client fee and each partner's expected share of that fee. It should note whether a finder's fee will be paid, how much and to whom. It also should note whether each partners' expenses will be reimbursed - and by whom.
Your agreement, or the new agreement you draft for each new assignment, should define in writing expectations for communications between team members, ensuring priorities, methods, responsibilities and expectations are understood as the project progresses. Ensure that the project objectives and people's job expectations are well outlined, so two people don't expect to handle the same task on the same project. Outline the order of steps needed to accomplish a project. This will help ensure that workers are brought on only when their skills are best suited for a particular phase of the project.
How will you get out of the agreement? Set up an exit plan. The contract should have a finite duration, usually linked to the completion of the particular project. It should make clear that the contract exists only for a particular client project and that the contract expires once that project is completed. As with any agreement, meet with your attorney and tax advisor to ensure the contract and compensation plans are appropriate and legal.
