What to Look For In a B-BBEE Partner
When looking for a new partner, specifically for B-BBEE, companies arguably rush through the process.
This could leave your business open to having two unaligned partners at the top, trying to force the business into opposite directions, thinking that they each know what’s right for the company.
Every successful business partnership needs three things:
- Someone who can add value to your business
- Operate in a growing industry
- Bringing additional finances or resources to the table.
A good partnership won’t happen overnight; it could take you up to 18 months to work out the details with your new B-BBEE partner. So, using it as an eleventh-hour attempt to save your business or when there’s a big tender on the line, might not work out for you.
To be successful, it’s better to go into this process with the right motives. A great B-BBEE partnership is mutually beneficial and based on growth potential for all involved.
Align Vision and Values
Partner with someone who shares your vision and values in business. Both partners need to be clear on their roles within the business and what they will need to contribute towards the business.
Like all great partnerships, a B-BBEE partnership is also built on alignment. You want a partner who will bring critical skills, experience, knowledge or maybe resources to the table.
Having a partner who is only fronting can damage your business’ reputation. Fronting is when you have a partner in name only in order to qualify for a higher B-BBEE level.
Searching For the Right Partner
Networking in the wrong environment can be detrimental, just like networking in the right environment can be advantageous to you and your business.
Ask people you trust for advice or if they know someone who is compatible with you and your work style. You’ll need to approach this as a long-term endeavour as it takes time to find the right person.
Once you’ve found your new partner, structure the best deal possible through a top notch legal team. This will protect both parties if the partnership doesn’t work out. Include roles and responsibilities within the contract, so everyone is accountable, and knows what will result should the endeavour fail.