Loading...
Answers
MenuI have secured a 6 month pilot partnership with a large partner. How can I ensure the large company continues to work with my company post-pilot?
I have secured a 6 month trial partnership with a large partner (12M users/$135M in funding) with a 12 month extension if KPI's are met.
We provide the company with supply and they provide demand. This is a new venture for the company. Are there any strategies I could implement?
Answers
Captain Obvious: "Meet the KPIs."
In addition:
- don't give them the secret sauce, what makes you "you"
- do things they don't want to do
- demonstrate positive ROI.
Keep the details of your technical expertise, how you do what you do, to yourself. That way they won't be able to simply hire someone and duplicate your process in-house.
By doing tasks they find distasteful or outside their comfort zone, you make yourself indispensable.
Clearly show, in measures they give you themselves ("If they say it, it's true; if you say it, you have to defend it"), that your efforts have brought in new revenue, saved them money, or both.
Finally, ASK THEM. Get them to clearly state under what circumstances they would declare continuing to work with you 12 months from now a "No-Brainer." Don't leave it fuzzy.
If you want my help with this, book a call to discuss.
In addition to Jason's excellent advice under promise, over deliver. When reporting on KPI's make sure to show any additional KPI's they are getting that may not be obvious, their benefits to the partner and any extra services you've thrown in above and beyond the agreement.
From my background in software and services sales, I've seen many situations where "being inside" provides a terrific opportunity. Congratulations on winning the right to walk inside!
Now that you're there you need to do three things, the first wo of which are more-or-less obvious: (1) deliver on the KPIs and any tacit outcomes as well; (2) manage the process well, i.e. to reduce friction and daily hassle and lastly (3) be seen to be doing these things.
This last item is sometimes missed by business or technical professionals in any field. To explore the question in more detail it's important to know the business you are in, what you are supplying, and what your customer's real needs are. (It appears to be a B2C play.)
So, to do job, to do the job well, and to be seen to be doing the job, you should consider that you are always "on".
In sales we say you "have two ears and one mouth, use them in that ratio". In other words, do lots of listening. What do your partner's KPIs mean? You could nail the KPI and then discover that the customer made a mistake! So do a SWOT analysis (or any preferred business model analysis) of your customer's evolving situation.
Especially, how are you bringing value beyond the initial engagement? You have won a coveted spot by being great. Now is the time to make sure you don't hide your light. Bring more value. This opportunity sounds like a major step up for your company, so it makes sense to master the opportunity and to grow the relationship beyond the current specification.
Proofs-of-concept and pilots and indeed any renewable service relationship are always opportunities to shine. If you'd like to chat, I'm especially interested to know your business sector.
A big success for you and your team!
John
Related Questions
-
Finding a co-founder for a non-coder/developer isn't easy. At all. How can I find people interested in joining me in my new project?
What city are you in? Are you talking about your product or do you keep it secret? Finding a team is one of the most difficult parts. Make sure you ask friends of friends if they are interested. People often forget to tap their network to find talent. There are a lot of events that help find startup co-founders. Cofounders lab does a meetup group, you might want to check that out. Hope this helps.CZ
-
I need partners to help my company launch. How many shares and/or how much profit do I offer to get them?
There are several factors to consider: 1. Profit share does not have to equal equity. As an example, two people can agree to split net profits 50/50 even though the percentage of equity is split 60/40. Just get it in writing. So find out their expectations for long term income and equity. Are they expecting a share of net profits or just the ability to recoup their investment when you sell the business? 2. What value do they bring to your business? Are they funding? Are they bringing significant contacts or the ability to secure contracts? Are they helping with infrastructure or product development? What would you pay someone in salary with no equity to do the same exact thing? 3. Are the short term or long term? In other words, once they help you launch, do they continue to have value in building the company? Or, are they no longer needed? There is no right answer to how you compensate them for helping you get started. But, try to look at all the value variables. Maybe that will help you identify what they are ultimately worth and what a fair, win-win offer would be. It sounds like they are very reasonable and you have a good opportunity to get their help for a reasonable compensation package. Good luck. If you would like to talk more about this at no charge, I offer a one time free call to new callers. Just use this link to schedule a call. https://clarity.fm/kevinmccarthy/FreeConsultKM
-
What are my risks in entering a partnership with 50% voting shares, but only 25% equity overall? How can I protect my interests in this scenario?
The first matter for you to conclude is to agree the terms of a shareholder agreement between the two founders. This shareholders agreement should govern the management of all significant governance matters. Without this you will subject to the constitution documents of the company and local company company law. This is a standard type of agreement that any decent corporate lawyer will be able to advise you on. As the voting shares are held equally, then no major changes will be able to be made without both founders agreeing to the changes. The non-voting shares (assuming all other terms are the same) will have equal rights to financial returns (dividends and liquidation rights), but will not be able to participate in voting issues. In simple terms, you will have an equal say in the running of the company with your co-founder, but will receive 25% of the returns, while they receive 75%.NH
-
How do I setup a strategic partnership agreement without having to do a rev/profit share deal?
If you are really investing in a strategic partner (one that will provide mutual benefit in the end, either in terms of revenues, access to financing or other resources) then revenue sharing isn't absolutely necessary. In the partnerships I help to form, they are often around shared value (http://www.fsg.org/OurApproach/WhatisSharedValue.aspx) which means shared revenue isn't the absolute aim. What is the aim, however, is sharing information, knowledge, technical assistance, operational help, etc) and build a lasting framework for engagement together into the future that will benefit both parties. I am happy to help you negotiate these types of partnerships (it's what I do!) so feel free to get in touch.JS
-
If I have 51 percent and my partner has 49 percent of our company, what real decision making authority would I have?
On paper you have the advantage but after several startups control resides in he who knows how to execute the vision of the company.HJ
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.