Economies and markets everywhere are becoming
increasingly globalised, and there’s no way of getting around the fact that
pairing up with foreign firms is a great way to enhance your own firm’s
business prospects. Whether it’s in the form of a white labelling deal that
could expand your product’s reach or simply the provision of expert, local
advice, there are many ways in which working with foreign firms can play out in
Structure of the deal
First off, it’s vital to make sure that you get it
clear from the outset – and in writing – exactly what the scope of the
partnership will be. This is important because there are so many different
guises that an international partnership can take and getting that mixed up at
this early stage could cause havoc. If one party is going to be promoting the
other party’s product or service, for example, it’s important to establish
whether this will be on a white labelling basis — whereby the promoting party
can put their branding stamp on the product — or not.
It’s also important to flesh out when the deal ends,
and whether or not either party can terminate it early. This sort of thing is
important in any context, of course, but it’s even more important when the deal
is international. Language
barriers might mean that misinterpretations can occur, for example, while
contract law rights which you have here in Britain might not exist abroad.
While analysing the structure of any deal is
important, it’s also sensible to not be entirely gloomy about the scope and
potential of an international partnership. International partnerships can also
give companies amazing boosts in terms of knowledge sharing. In the case of
firms from the UK looking to do clinical trials in China, an international
partnership with a China clinical research
organisation can help to navigate medical regulations, which are vital for
achieving product approval. There are countless examples of situations like
this in many sectors and industries, so it’s always worth looking into.
More than one?
Depending on the industry you work in, it may be prudent
to avoid putting all of your eggs in one basket. That’s because the
international economy is so fast-moving and dynamic, and your priorities – and
revenue sources – can change at any time. So, it could be worth steering clear
of any international partnerships which include clauses restricting your
ability to pair up with other firms – unless, of course, this is something that
works for you in your sector.
Working with foreign
firms can be both wonderful and a minefield – and as a savvy business leader,
it’s your job to ensure that it’s mostly the former and rarely, if ever, the latter.
A foreign firm may be able to provide you with market access or unique advice,
and that’s to be celebrated. However, it could also end up limiting your
options, or cause you to sign a contract which ends up not meeting your needs.
By being careful and prudent, you can ensure your deals are as suitable for you