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7 Criteria for Choosing Your Business Partnerships - Who to Associate With and Who to Avoid?
1 month ago by Cedar Rose

7 Criteria for Choosing Your Business Partnerships - Who to Associate With and Who to Avoid?

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What can a bad business association do to your reputation?
A bad business association can damage your company’s reputation. Reputational damage can drive customers, clients, and investors away. It can also increase costs to acquire new customers, hire workers, and increase employee turnover. All these factors can harm your sales and profitability.

In this guide, we’ll look at seven criteria for choosing your business partnerships to ensure that you make the right decisions for your company’s long-term success.

Seven criteria for choosing your business partnerships
The success of a strategic partnership between two businesses is determined by how compatible both parties are. Therefore, if you want to choose the right partnership, it's essential to look for an alliance that complements you and your company.

Here's a list of seven criteria you should look for when choosing your next business relationship:

1. Vision
You can achieve your goals in a partnership if you and the company you’re dealing with share the same vision. This will motivate both parties to achieve common objectives, put in the same level of dedication, and go to the same lengths to ensure targets are met on time and within the agreed parameters.

Try to find a company you can collaborate with to create a well-structured plan. Look for companies that share the same ideas, values, and beliefs as you. For example, if you strive to grow slowly and steadily without external funding, but the other party hopes to raise capital and grow fast, you won’t be able to find common ground to enter a partnership.

2. Credibility
If you’re looking at investing in another company, it’s important to research and partner with a company that you can trust. Investing in fraudulent companies could not only hurt you financially, but it may also affect the reputation of your business.

It’s essential to check the credibility of any company before you deal with them. Cedar Rose provides Due Diligence services to protect your company from making unwanted associations with companies that aren’t credible.

Cedar Rose offers a multitude of due diligence solutions. You can order a tailor made reports or choose various reports like site visit reports and asset tracing reports, enabling you to know the true origins of a potential partner.

3. Dedication
Before lending money to another company, be sure to assess the purposes and commitments from both parties. For example, if your company is willing to provide half the resources to a project, but the other company is not willing to do the same, they may not be the right fit for you.

Additionally, it’s important to agree on what each partner’s roles and responsibilities are so that the transparency and accountability of a deal is maintained.

4. Ethics and values
Any company you invest money in should share the same ethics, beliefs, and values as you. If there are differences in values, there’s bound to be conflict in the long run.

Environment, social and governance factors provide insights about a company’s environmental, social and governance performance and policies. This information helps investors to make ethical and sound investment decisions by uncovering risks associated with any controversial or illegal behaviours

5. Complementary skill set
Look at the skills and qualifications required when choosing a business partnership. It’s best to enter into a strategic partnership with a company that specialises in the skills your company lacks.This creates a balance between both parties and ensures that you are prepared for every possible scenario.

For example, if your company has an exceptional Research and Development department and another company has a strong track record in sales performance, it would be highly beneficial to partner with them to sell your products.

6. Strong network
Find a company that has a large network and can connect you to other resources that could help you with your business. Getting access to a wider network can open up additional avenues and can help you grow your business quickly.

For example, if you're looking for a delivery company to deliver the products you’re selling, a company with an existing network can immediately add value and open up many opportunities for your business.

7. Reputation
Be sure to do a background check on a company before you consider investing money with them. Associating yourself with a company that has a bad reputation can harm your image and deter others from collaborating with you in the future.

A bad reputation may make it significantly harder to obtain loans, attract quality talent, and market yourself to potential customers.

Cedar Rose’s CR Comply helps your business fulfil due diligence and regulatory obligations for protection against potential financial and reputational losses. The service is an automated and instant global compliance screening tool that helps your business assess third-party risk levels, uncovering sanctioned entities, politically exposed persons (PEPs) and adverse media on companies and individuals globally.

Cedar Rose solutions for checking business associations
Your company’s reputation can make or break your business so making decisions that will protect you financially and reputationally is crucial.

At Cedar Rose, by facilitating trust we can help our clients create valuable business opportunities and sustainable long-term relationships. 

We make transactions safer and more secure with trustworthy and reliable information about business partners, putting your company in the best possible position to continue growing. 

For more information on our services give us a call today on +357 25 346630 or request a call back today.

  • Business Partnerships
  • Due Diligence
  • Compliance Management