Nine Indicators of Perfect Sales Partnership

Before deciding whether to enter into a partnership arrangement with another organization, these issues need to be investigated:

1. Finances. How profitable is the potential partner? Take a look at the organization's annual report (if available) to see if you can spot problems that you could help address. What is the trend line of profits? Do their costs seem to be higher than those in the industry? Are their sales in decline?
2. Competition. How is the potential partner doing in the marketplace? Are their sales growing or declining? What is their market share? What have their major competitors done to improve their position in the marketplace? What innovative strategies have their competitors used to jump ahead?
3. Market trends. How is the industry doing? Is it expanding or in decline? Why is this so? What could you do to help the potential partner outperform the industry averages?
4. Organization. How is the potential partner's business organized? Is it hierarchical or flat? (It is easier to do business with an organization that is flat and flexible.) Is the organization structured along product or process lines? (Organizations structured around processes tend to be more customer focused and therefore more disposed to partnerships that benefit their customers.)
5. Regulations. Does the potential partner operate in a highly regulated industry? Are there government pressures that, if enforced, could reduce the partner's effectiveness? Are there things that you could do to reduce their dependency on bureaucratic red tape?
6. Vendor philosophy. How does the client view dealing with vendors? Do they have many long-term contacts with vendors? Are they loyal to their preferred suppliers? How closely integrated do they get with their best suppliers? Do they tend to buy on price or service? How do they view your industry? Do they see it as a necessary evil or as a value-added opportunity?
7. Performance criteria. How specific is the potential partner with regard to performance standards? Will they want you to sign service contracts? Will the reaction to non-performance be punitive? Are you capable of meeting stringent performance criteria?
8. Key players. Who are the key players? Are they people that you would enjoy working with? What are their business philosophies? Are these similar to yours?
9. Relationships. How is your relationship with the potential partner? Is it a long-term one? Have you worked well together? Has there been a history of give and take? Do they see you as a leader in your field? Do they value the relationship as it now exists? What partnerships have they formed with other suppliers? How successful have those been? Favorable answers to most of these questions would suggest that you have a basis for creating a partnership agreement.