Imagine if you were presented with an opportunity to potentially expand into bigger things through a partnership of some sort where it would increase your presence and distribution power. However, the cost of this is that you would be receiving less money due to the deal as your new partners will be getting a huge chunk of what you make. Would that be worth it in your mind?
That was a scenario I was reading about and the views that were brought up were interesting. For example, for the people that purely looked at it from a financial point of view they mentioned that it was a dumb idea as the bottom line is you are making less where you would have o be a fool to take the offer. On the other hand, some people were saying that it would be a great opportunity to get out of a tank full of small fishes and into a big one where if anything the exposure can result in one being able to use that experience to create other opportunities that they normally wouldn’t have been able to otherwise.
I would think ultimately it would come down to whether or not you are losing money or that it would be pitting you in a situation they you will be starving, so to speak. It kind of reminds me of a story I saw before of some company that was so happy to get a distribution deal with a large company like Walmart. However, to do this apparently Walmart demanded that the wholesale price must be low which was to the point that the company was making so little that they eventually went bankrupt. So in that sense it wasn’t a wise decision despite getting more expose and distribution for their product.
I guess a trickier scenario would be let’s say you currently make $50,000 a year selling flowers. There is then an opportunity where you could have your products in more places. However, after it is all said and done you are still making $50,000 except now your brand/company is definitely getting more exposure. Would you be inclined to say that is a good deal? That is a really hard question depending on what kind of mindset you are coming from.
I would be inclined to say if you are currently very small that an opportunity like that scenario to make your brand/business bigger can be a very good thing. I can only imagine that it will open bigger doors for you in other ways. Again though, I would say whether or not financially it is putting you in the red is a big factor.