Make sure your business is compatible with your potential strategic alliance partner's business.

Would it make sense for me to approach the head of the Chuck E. Cheese chain about doing something together? Nope (although my daughters would strongly disagree). Look for a business that slides together nicely with yours, like two pieces in a puzzle. And make sure you have something of value to offer them as well.


There's nothing more frustrating than attempting to establish a relationship with someone you despise or who drives you nuts. (Talking from experience here.) No matter how hard you try to ignore it, their idiosyncrasies will affect your decision making - and, ultimately, your bottom line. No, you don't have to have them over for Thanksgiving every year. But you will be spending a lot of time together. So you'd better make sure you can put up with them on an extended basis.


Set the parameters of the strategic alliance early on and stick to them. Put them in writing or, better yet, have your lawyer do it. There have been way too many multimillion-dollar agreements that started with a handshake but then crumbled because the two parties didn't hash things out clearly. I don't want to see yours do the same.