4 Reasons for Startups to Avoid Big Partnerships

David Cummings on Startups

We’ve all heard the story: an entrepreneur spends a tremendous amount of time and energy signing a big partnership only to have it result in nothing. Every. Single. Time. Personally, I’ve done the big partnership thing multiple times and never had it work out. Do as I say, not as I’ve done.

Here are four reasons why big partnerships fail:
1. Loss of Sponsor – When one person is driving the partnership, and that person leaves, there’s a good chance that the replacement person won’t feel as strongly about the relationship
2. Change in Strategic Priorities – While the partnership might be important when the deal was signed, that could change at any time as the company is continually changing strategic direction
3. Limited Early Results – Big companies operate with a shorter horizon, so if the partnership doesn’t yield great results immediately, there’s a good chance the partnership will…

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