Contra deals aren’t as simple to set up as regular cash-based arrangements – and one of the trickiest aspects is finding a suitable partner. However, the fact that it’s more of a challenge means that there are greater benefits to reap, and your success may depend greatly upon finding the right partners. Here are a few ways to make sure that you do.
Know Your Goals
Contra deals come with many advantages, but try to keep just one in mind when you’re finding a partner.
You might want to forge an ongoing relationship in which each party brings the same amount of effort to the arrangement. Alternatively, you might be hoping to make important contacts in your field, gain exposure, or simply take advantage of a certain service without disrupting your cash flow. Deals may yield all of those results, but keeping one in mind while planning will help you find the most fitting partner.
The Right Fit
There is no one size fits all approach to contra dealing – but once you understand your goals you can begin to work out what type of businesses are going to be best suited to helping you achieve them.
For example, aligning yourself with a business with compatible expertise can be a good way to create a long-lasting association, as you will usually continue to require each other’s services. Other goals will require you to judge the size of the company and who its target audience is.
Understand Your Value
You’ll clearly need to assess whether a certain potential partner can deliver the right benefits, but it’s just as important to understand what you can bring to the table. There’s no point finding the perfect partner, only to find out that you’re not the perfect partner for them. Even if they do agree to a deal, you’re unlikely to enjoy a very advantageous negotiating position.
Before you start looking, try to gauge what makes you valuable. Do you have a specialised set of skills, a large social media following, or access to expensive or rare equipment? These are all sought-after commodities.
There’s no simple trick to finding a suitable contra dealing partner, but these tips can still help you make the right decisions.