Successful Service Provider Symbiosis

One of the primary pressure points for independent Service Providers, no matter the industry domain, is securing new projects and expanding client base. There are a number of small to mid-size services providers are entrepreneurial ventures ranging in size from established companies to growing small businesses. A broad swathe of services providers are freelancers too. Service Providers who offer expert services, especially those with a proven track record have emerged as strong alternatives to the traditional team framework in companies. This trend has gathered momentum for a medley of reasons, not the least of which is cost considerations. Instead of hiring full-time employees both start-ups and growth-stage companies alike, leverage service-providers’ expertise and embed them as integral part of their team. It can be a very synergistic and symbiotic relationship when expectations & requirements, operational logistics and skills are seamlessly aligned. The location of the Service Provider has become irrelevant, with ubiquitous communication and connection options.

That said, here are a few top-level guidelines, which can provide a steady start for both companies and Service Providers, as they explore teaming up.  

For Companies:

1. Ideally best to consider Service Providers who are referred by your network. Chances are you may happen to come across a service provider through your research. In this case - check out their online presence, web site, and the content quality and details of their professional profile and any posted endorsements.
2. Invest the time in interviewing service providers, a few times as you explore and further discussions.  This approach provides iterative opportunities to clearly understand their biz set-up and expertise, personality traits and work ethics.
3. Check customer references interactively,  wherever f possible, rather than a written testimonial. Ask their previous clients, pointed questions on work  completed  for them by the Service Provider.  The scope of  your work  may be quite different, but data points from multiple sources can highlight some common themes to consider.
4. Send written requirements to the Service Provider, prior to a decision,   with clearly detailed deliverables and request a written proposal with timelines. A prompt and clear back and forth communications is a good first step. Check to see if your local representative can meet them in person on your behalf, if the service provider is based elsewhere.
5. Have a clear agreement that frames the relationship and ensure terms are mutually understood. Some Service Providers, may even become part of your management team with a financial stake in a company beyond the traditional  “contract’ framework  and even  leverage his/her team to constructively contribute  towards ongoing deliverables. When it works, and it surely can - this is a definite win-win.

For Service Providers

1. While there is the relentless business pressure for  growth, revenues  and new contracts,  it is strategically optimal  to select engagement which has a clear success storyboard potential. These clients are then committed in your success and in turn are strongly inclined to endorse you. Such clients will most likely go beyond the written testimonial and agree to be a strong reference and interface with potential new clients.
2. Overextending your resources and promising deliverables that are steep can be risky. If you are confidently positioned to deliver on the requirements within timelines, best to be candid and upfront with your potential client in negotiations. Never over promise and under deliver.
3. Mutual trust takes time to build. Prompt and open communications and reliable work quality are some crucial elements to build on an edifice of trust per client.
4. Selection process is mutual. As discussions continue, learn more about the client, company and its founders and their vision. Check to ensure that there are strong synergies and core trust in the relationship, especially if the engagement leads equity stake and even a cofounder/executive role & responsibilities. This can be a real possibility in early stage ventures.  Do your research, ask detailed questions and also follow your instincts. Nothing ventured, nothing gained. Get detailed clarifications on engagement terms before you sign-off.
5. Be prompt in communications and keep your client informed closely of updates. Some deliverables may have some timeline hiccups but set expectations upfront and initiate remedial measures to get things back on track. This is particularly true if your client location is based elsewhere. Maintain multiple open lines of communications always and be proactive in both planning and delivery logistics.

Realizing success in working relationships with Service providers, no matter the phase of a company growth is a real and pragmatic possibility. But both parties have to work at it. The positive team magic happens when both company and Service Provider are proactively committed to each other’s success with a congenial familiarity and trust built over time.   And when it does, you are most likely to replicate the formula for your future business pursuits as well.  There can be a ripple effect - a significant confidence booster, all around, including for potential investors.