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Business Partnership Proposal Template

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  3. Business Partnership Proposal Template
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BUSINESS PARTNERSHIP PROPOSAL TEMPLATE

Prepared by:[Sender.FirstName][Sender.LastName]​ ​[Sender.Company]

Prepared for:[Client.FirstName][Client.LastName]​ ​[Client.Company]

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For a contemplated Partnership, Strategic Alliance or Joint Venture (JV) between [Sender.Company] (“Sender.Company”) and [Client.Company] (“Client.Company”).

Submitted by: [Sender.Company]

This proposal contains the proprietary information of [Client.Company] and shall not be shared outside of the above named parties.

BACKGROUND

[Client.Company] met with [Sender.Company], and shared with them plans related to describing the business venture.

[Client.Company] possesses rare insights and expertise necessary to develop systems and applications related to the above, while [Sender.Company] has the resources needed to develop such systems and applications.

The parties believe there may be mutual benefit in forming a business Partnership or Strategic Alliance and pooling their resources and assets in order to pursue the objectives below.

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Project Overview

[Sender.Company] wishes to create a web-based project with [Client.Company] for catalog management. Seeing that buying has become a tricky business for many retailers and wholesalers alike, there’s an obvious gap in understanding how to shop for products in such a way that there is a minimum of leftover inventory on a commercial level.

By using the capital and the ideas [Sender.Company] brings to the table, along with the expertise of [Client.Company], this project is positioned to achieve success. We aim to understand what buying decisions cause there to be excessive inventory and unused/unsold products for multinational companies, who, even with the help of professional buyers, are left with millions of dollars in losses every year due to poor buying decisions.

Our software will keep track of inventory for all buyers so that they can make better buying choices, thus ensuring that our clients optimize money spent by avoiding excessive purchasing decisions.

SWOT Analysis

S (Strength)

W (Weakness)

In this section, make a list of all your strengths. For example, you can focus on what makes you stand out from your competition, what you bring to the table that no one else can, what differentiates you from the rest, etc.

In this section, jot down all information on how you may be lacking compared to your competitors. Maybe they’ve been in the industry for longer than you have, or have more capital than you, or a larger team than you, etc.

O (Opportunities)

T (Threats)

Use this section to write about how you can use your strengths to your advantage. Address questions like what opportunities you see to grow, how can your strengths help you gain a competitive advantage, etc.

Here, write about which threats you expect to face from the market. Perhaps there’s a recession expected, or laws that are subject to change which might affect how you conduct business, etc.

Goals of the Project

By the end of the (X year), we expect to achieve the following goals with this project:

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  1. Add details about your goal #1

  2. Add details about your goal #2

  3. Add details about your goal #3

Timelines and Milestones

Milestone

Add details about milestone #1

Add details about milestone #2

Add details about milestone #3

Timeline

Add details about timeline #1

Add details about timeline #2

Add details about timeline #3

Objectives of the parties

Catalog Management

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A DIY web-based platform wherein… ([Sender.Company] & [Client.Company])

A more sophisticated application for comprehensive project-based catalog management services ([Client.Company])

Data & Analytics

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A DIY web-based platform wherein… ([Sender.Company] & [Client.Company])

Contributions & responsibilities of the parties

[Client.Company] owns the intellectual property, including, but not limited to, plans, methods and processes needed for the development of the systems and applications contemplated above.

[Sender.Company] brings capital/resources and marketing and business development expertise as well as expertise in hosting and managing online subscription-based platforms. (NOTE: the arrangement could be set up where funding is sought from outside [Sender.Company]).

The table below shows each parties’ anticipated contributions during the development and execution phases of any Strategic Alliance or Partnership that shall be entered into.

[Client.Company]

[Sender.Company]

DEVELOPMENT PHASE

Web-based DIY Catalog Management platform

Intellectual property, including plans & know-how.

Capital/Software Development

Project-based Catalog Management application

Intellectual property, including plans & know-how.

Capital/Software Development

Web-based Data & Analytics platform

Intellectual property, including plans & know-how.

Capital/Software Development

Intellectual property, including plans & know-how.

Capital/Software Development

Intellectual property, including plans & know-how.

Capital/Software Development

Intellectual property, including plans & know-how.

Capital/Software Development

[Client.Company]

[Sender.Company]

EXECUTION PHASE

Web-based DIY Catalog Management platform

Consult on upgrades & sales support

Website hosting

& maintenance, customer service, sales & marketing

Project-based Catalog Management

[Client.Company] will perform all efforts related to project-based/non-DIY services

Web-based Data & Analytics platform

[Client.Company] will share data

& provide sales support

Website hosting

& maintenance, customer service, sales & marketing

[Client.Company] will perform all royalty accounting

Sales support

​Sales & marketing

[Client.Company] will have right of first refusal for these services

Rights in Developed Software & Services

The following depends on the legal structure of the arrangement. The below assumes a Strategic Alliance will be formed.

​​[Client.Company]

[Sender.Company]

DEVELOPMENT PHASE

Web-based DIY Catalog Management platform

Ownership of IP

and technology

Perpetual License to be agreed

Project-based Catalog Management application

Ownership of IP

and technology

Perpetual License to be agreed

Web-based Data & Analytics platform

Ownership of IP

and technology

Perpetual License to be agreed

Ownership of IP

and technology

[Client.Company] may opt to license

as an add-on to DIY catalog management platform

Rights/ownership in whole or part subject to existing agreements.

Right of first refusal on…

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Legal considerations

This Alliance or Partnership will take on one of a number of forms. Given the complexities, a Strategic Alliance agreement may make the most sense, but clarification is necessary on a number of items for that kind of agreement (e.g. revenue/profit splits or royalty payments). A Joint Venture (JV) could be construed as a Partnership, and if a JV is desired, it may make sense to set the JV up as an LLC for liability reasons.

Revenue or profit splits / royalties

A discussion around revenue share, profit share, or royalties is dependent on the legal considerations above. TBD for now, and finalized at contract signing.

Terms and Conditions

Although a formal contract is to be followed, both parties can agree on the following terms and conditions:

  1. Both parties agree to enter into the partnership indefinitely, as opposed to a limited term or a period of time.

  2. Both parties agree that they will do their best to ensure that their end of the bargain is kept. For example, if [Sender.Company] has X, Y, and Z responsibilities (as mentioned in the table above), they agree to deliver on those responsibilities.

  3. If either party wishes to terminate the agreement, they must let the other party know in writing. After a letter has been shown to the other party, Party A agrees to stay on board for no less than a month to help Party B conduct a smooth transition.

  4. If any disputes arise between either party, they may resolve them either through (i) an amicable discussion, with or without third party mediation, or (ii) by going to a court of law. Laws from [Sender.Country] will be applicable in case of any disputes seeking legal recourse.

  5. Each party agrees to not commit to any unlawful business which may affect the credibility or the goodwill of the other party, or of the Partnership as a whole.

  6. If either party recognizes any such wrongdoings by the other party, they may (i) resolve it with the guilty party, or (ii) seek remedy under the jurisdiction of [Sender.Country].

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Agreed by the Parties

[Sender.Company]

MM / DD / YYYY
Signature

[Client.Company]

MM / DD / YYYY
Signature
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Business Partnership Proposal Template

Used 6,991 times

Reviewed by Yauhen Zaremba

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