Don’t look for international partners until you read this!
Okay… I apologize if that sounded melodramatic, but the truth is, this article could save you millions upon thousands, if not millions, when it comes to building a real international business.
Most of you may have already started a website and think of it as “international”. Well think again! Every new person of a culture or nationality you encounter online may avoid you simply because they have no presence in the country the visitor is from. Don’t be surprised by these interesting concerns:
#1 – No local phone number, no business!
If your site does not have a number where someone can reach you, it is already a disadvantage. What surprises many people is the fact that they cannot communicate with you in their own country. This is particularly so when there is a high level of skepticism around online shopping, and you’ve probably already taken it for granted that everyone is willing to shop online.
#2 – No support during local hours, no business!
If you can’t provide support during local business hours, you’ll also lose. Particularly in places like Singapore, where customers are savvy enough to write checks to safeguard their business interests, you’ll expect a heightened level of scrutiny amid internet skepticism.
#3 – Just an autoresponder? There is no business!
Caramba. Is this really that hard to understand? Get yourself an international number. If necessary, open a representative office when you decide that your business is serious enough to go far.
But for many people, they will balk at the idea of doing this. It is difficult to know that there are many people who really do not have the financial means. However, there is a better way to do it: strategic business partnerships.
Are you really talking about JV?
No. Gone are the days when JVs actually mean something. Don’t get me wrong, they are actually very important people, and you shouldn’t consider them ‘past’. It is simply part of an overall strategy. You really have to create a strong alliance with people who are willing to put money in, not just a super affiliate. If there’s something you want to build in a region you’re not familiar with, or a place you can’t really take advantage of, consider rewarding partners for getting things done.
These partners should be able to help you with culture, infrastructure, resources, or presence. In any case, the ability to create this will certainly generate more synergy than you might think. Our own partnerships have reached millions of dollars, and we are constantly looking for ways to further maximize the business we have built.
find partners
On my blog, I talked about finding partners and how difficult it can be. Here are my considerations when looking at partners.
#1 – a clear win-win benefit
It doesn’t make sense if someone isn’t giving exceptional value. There are so many people who could come up to you and say “let’s do business”. Why you should? You really need to consider the value of a win-win relationship because you both need to make money for a business to sustain itself. Yes, it’s important, but it’s NOT the only thing!
I’ve seen a lot of small-time competitors repeating the things we do, and it doesn’t seem to make financial sense when we calculate their numbers. They are not making enough money to create a joint venture relationship that is truly sustainable. If I want a seminary speaker to come to the region, or a published author on a book tour of Asia, I want to make sure I don’t go broke, and neither does my partner!
#2 – a stable business base
If you’re looking for a business to work with, you should already have a proven business foundation. Obviously, it’s better that they have a vested interest in doing this together, and that there is some kind of commitment to partnering. Does your current partner know how to handle finances? Does your partner have the ability to handle worst case scenarios in the business venture? Eventually, you should also see a history of them working with other people. The last thing you want to do is have people know absolutely nothing about working with partners!
#3 – innovative and time-tested
Did I say time tested? Oh. That probably eliminated 95% of your list of potential business partners. Again, I’m referring to the physical investment you intend to make in your strategic business partnership. Your partners must have demonstrated their ability to run your business in a rather innovative way. You will recognize this by your failures and your ability to recover from them.
#4 – open communication
A strategic business ally must be willing to open communication. This one is particularly important because without it, assumptions add up and this creates a much better working relationship over time. I’ve worked with partners who don’t communicate and with those who do, but there’s no question that communication facilitates solutions, even in the face of problems.
This means that you have to get someone you can really be honest with, and this is a commodity that is not really for sale. You can’t buy a good partner: you can only connect with people you’re going to be able to comfortably build a decent business with.
#5 – not overloaded with current responsibilities
The worst that can happen is that the company you are working with is filled with a series of responsibilities of its own and cannot focus its priorities on you. This will be quite damaging! I recommend that you make sure that resources are allocated as part of your agreements, so that you don’t get caught up in a “phony” agreement where you end up doing everything on your own.
Usually all of these things are ignored in the excitement of a project idea. Listen up: project ideas are a dime a dozen. Don’t jump into a joint venture just because it’s being hyped. Ground yourself so that your project idea can bear fruit based on strong foundations of partnership.
Typical concerns to list
You should evaluate this on your own or with third parties you trust.
#1 – Does your partner pay promptly and on time?
If a partner is late paying, I’m not suggesting they’re a bad person. I wonder how much of his operational capabilities are actually optimized. After all, you have to worry that this person might be doing the same thing to the end customer.
#2 – Is your partner focused on profit or service?
I know a lot of people who profess to hate customer service on the internet. They don’t want anything to do with it because it’s tedious. Well, why wouldn’t it be? It is about human relationship. If people are afraid of providing good after-sales service, it can also mean that they won’t be willing to have a conversation with you.
#3: Is your partner aware of other KPIs in addition to profit?
I like to ask this question because it tests your ability to stay focused on the outcome of your partnership. If you are a strong partner, you will find ways to maximize your relationship instead of using someone else’s relationship to make a profit. You can focus on the total number of subscribers. You can focus on the testimonials that come through. Whichever the case, if you are starting a relationship, you may want to create a set of performance indicators for each one and commit to this in writing.
Written? Yes, in writing. A breach of contract, honestly, is something that happens all the time in the business world. However, if people are willing to accept the contract and commit to it, it means they will be more committed. These are the people I accept. If the people I work with don’t honor the contract, I don’t cancel them. I approach the next adventure very, very cautiously.
#4 – Is your partner willing to commit effort/money?
Okay, I definitely value people who are willing to put their money where their mouth is. In other words, your potential partner has to be willing to do certain things for a living. What’s that? Are they putting in some kind of effort? How is this measured? How will a partner know that he or she is actually following through on this?
If I were a partner, I would like to know what kind of expectations my partners have of me, and let them know. Often, when a company is worthwhile and the evaluations have been carried out, a business proposal is made to invest resources in them. Once this is done, you do whatever it takes to make your goals happen.
Conclusion
A strategic business alliance is difficult in these times. There is jealousy, backstabbing, and lying that goes on in the background of any business. However, if you can establish reputation, credibility and trust within a group of people, there is a good chance that you will build much more than just a joint venture relationship. Taking a partnership to the next level requires a lot of ‘getting to know’, and I hope you’ll consider this in a way that goes beyond just a ‘special promotion’. Trust is one of the most important things that makes the biggest difference in any business that wants to scale massively.
