Lots of businesses are putting out collaborations now where they work with a fellow small business on a joint design or product so that they can expand their audience, their market share and dabble in something a bit different and out of their day to day activities.
This is all very exciting and there are some brilliant ones out there (and some that make you say “huh?”), but from putting on my business head rather than scrolling through Instagram looking at pretty things head, my top tips for consideration if you are looking at a collaboration are:
Obviously, you need a product, but beyond that I think the following are important to consider:
Quality – does the quality fit with the rest of your range
Pricing – is the pricing in line with your current audience and customers expectations
Brand fit – you are both wanting to reach new customers and a wider audience, but is it a fit or will they be confused.
Cleary, the costings need to be well understood so that the profits can be understood. Who will pay for the costs needs to be agreed and I would always recommend that these are in a written agreement.
How are you sharing the income from the goods or range? Is there a for charity element that needs to be collected and paid? Are the profits being split 50:50 or in some other manner. Again these should be agreed up front and in writing.
Do you need to check your trademark and intellectual protections? If this is a collaboration and perhaps something new that neither party has done before then do you have the necessary protection and covers in place.
Long term relationship
How long is this collaboration going to last? What are the terms of the collaboration? Does it prevent you from doing something similar with someone else in the future or along side?
This is just for starters! As with any new venture (which is essentially what this is) there is so much to consider and check, so make sure you know your market, know your customers and good luck.