How to evaluate whether a strategic partnership is worth pursuing

Not every partnership opportunity deserves your time. Founders are approached constantly with partnership proposals — some genuine, some speculative, and some that benefit only one party. Evaluating them quickly and objectively prevents the common trap of investing time in partnerships that deliver nothing.

The four-question filter: Does their client base overlap significantly with our target market? Do they have a service or capability that genuinely complements ours (no overlap, no competition)? Is their brand reputation consistent with ours? And most importantly — is there a clear, specific mechanism by which this partnership generates revenue for both parties? If you can't answer yes to all four, the partnership isn't ready to pursue.

The 90-day test: instead of committing to a full partnership framework, propose a 90-day test: one specific initiative (a joint event, a co-authored guide, a pilot referral arrangement) with clear success metrics. At 90 days, evaluate: did the initiative generate the expected results? How was the working relationship? What would need to change for a longer-term arrangement to work? A 90-day test protects you from a 12-month commitment to a partnership that isn't working.

Opportunity cost matters. Every hour spent on a partnership that generates nothing is an hour not spent on something that would. For a founder's time, this cost is significant. Apply the 90-day filter ruthlessly and exit quickly from partnerships that show no early signs of traction.

The sunk cost trap: don't continue a partnership because you've invested time in it. The time is gone regardless of whether you continue. The question is whether additional investment of time and effort will generate a return. If the evidence says no, exit.

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