Collaborating & Expanding your Business
Last updated: 2021-05-28 (originally published on 2017-06-25) — by Alex Tanglao
A Business Collaboration Agreement is a binding document that sets out the rules for cooperation between two companies. This is common when two companies work closely together to complete a project and establishes how the companies will work together, who will do what, the division of tasks, and how the relationship will end.
Working together with a distributor might be a good way to expand your business. A Distribution Agreement can be used to set out terms and conditions of a distribution arrangement. It is important to specify the terms of the cooperation from the start so you can avoid misunderstandings during the course of the relationship.
You may also outsource work using a subcontractor. If you have entered into a contract but want to hire a subcontractor to perform some or all of the work, then you should use a legally binding Subcontracting Agreement to set out the arrangement.
When distributing goods through consignment, use a Consignment Agreement. This is an agreement where a person or business (consignor) ships or entrusts goods to another party (consignee) for the purpose of selling the goods to the end consumer. The consignee generally does not pay the consignor until the goods are purchased by the consumer and the consignee does not receive ownership of the goods.
When sourcing goods for a client from a manufacturer, there are usually three parties involved: the client, the sourcing company, and the manufacturer. An Introduction Agreement sets out the details of such an arrangement and can make sure the client can’t contact the manufacturer directly or vice versa.
Business referrals can help to grow a business significantly. It is best to use a Business Referral Agreement that sets out how much, when, and how the referrer will be paid their fee.
- Before Starting a Business Relationship
- Selling Goods & Services
- Purchase Orders & Invoicing
- Ending a Business Relationship