The first real question to ask yourself is : do I really need to have a partner in order to do business in XYZ country ?
Contrary to some popular and potentially time wasting beliefs, it is clearly not “automatic”. The point here is that a partnership must make business sense : not wishing to go into the “field“ for example is a very bad reason to choose a partner. First and foremost being that you will never understand the market you’re addressing and that will jeopardize your activity in the short, mid and long run.
Also, don’t count on a partner to bring you a deal without your intense help. Plus, you can bet on the fact that you will bring the first one yourself – holding your partner’s hand. Doing business in Africa bears a simple fact (like most markets for that matter) is that you need to go on site, that you do the first steps, and that you communicate this knowledge and understanding to your partner.
Only through this “hand holding” will you ensure motivation, follow through, and a durable collaboration. Plus, don’t give your partner long lists of to do’s + very specific timeframes – you will only be disappointed. Give one to do at a time + give them window of actions until your next trip to that specific country. The last point is fundamental – you need to create the urgency – not your partner. Urgency will come by you coming to the country again.
At the end of the day – don’t expect to do any serious business and build business relations without going at least 4 times to a specific country. A good partnership takes time to build. Even if you’re a Cisco, Bouygues or Total – and actually, if you are one of these companies – more often than not – a partner is not what you need – you’ll set up your own operation in XYZ country.
Below, some of the questions that you need to ask yourself when selecting your partner :
- What’s my market ? How complex is my solution / product ? The more your solution is complex and specific the less you will realistically be able to rely on a local partner quickly. The more local support you need for your product / solutions the more a partner will become justifiable (include training time to your relationship building).
- What are my sales cycles ? The longer they are and the less a partner will follow….
- What is the real local « network » of the potential partner ? Merchants of dreams as I call them are numerous in Africa and you need to identify them quickly and “ruthlessly” in order not to waste time.
- What are the common payment terms and conditions in the country ? This point alone could justify having a partner in Nigeria for example.
- Etc.
Please comment / add inputs.
(Sylvain)
