How to set up a business collaboration
Step-by-step guidance on setting up a collaborative network, the information you might need to share and the tasks you might need to carry out.
The setup of a business collaboration often decides its success. Progress hinges on clear, realistic objectives and strong member commitment. Key strategic elements ensure long-term viability - this includes resources, organisational support, a solid business case, and suitable technology.
Establishing collaborative networks
Collaborations naturally evolve over time. The table below shows typical progression from loose connection to sustained business partnerships. It outlines what information you might share at what stage, activities you might carry out in each, and challenges you might encounter, as you build your network.
| Collaboration stage | Information to share | Tasks to carry out | Potential challenges |
|---|---|---|---|
| Agglomeration | Little beyond ad hoc exchanges, as members still operate in silos. | Research potential market opportunities. Scope funding options. | Low trust; unclear value. |
| Networking | External information, such as sector issues. | Set ground rules. Analyse capability. Build community. | Misaligned expectations. |
| Co-ordinating | External market data and internal information, eg company strengths and capabilities. | Appoint leadership and facilitator. Secure support and establish full participation. | Resistance to sharing data. |
| Mobilising | Project plans and network processes. Resolving resourcing issues. | Set goals and objectives. Define processes and draft agreements, including a memorandum of understanding. Consider intellectual property (IP), consortium models, marketing and branding. Engage key stakeholders.a | IP disputes; funding gaps. |
| Collaborating | Business development and marketing information, and information on project risks. | Create project frameworks. Set membership protocols. Agree on a process for handling tenders. Clarify liabilities and train network members - groups, companies and individuals. | Scope creep; liability concerns. |
| Sustaining | Network management information and benefit allocation. Network funding data. | Set licensing agreements and royalty protocol, if applicable. Plan 3/5 years ahead. Agree on longer-term goals. Carry out joint R&D. Dedicate staff and set up network HQ. | Member churn; funding fatigue. |
Formalise your collaboration with the correct legal documents to define rules of engagement.