27 Jun Choosing the Right BEE Partner
Successful partnerships benefit the partners and the business, and add real value. If you’re serious about real transformation, here’s how you should go about finding the right black economic empowerment partner for your business…
Determine your business needs
First up, it’s important to reiterate that BEE fronting is not an option. Rather channel your efforts into finding a business partner who is an achiever who also happens to qualify as a BEE partner. Look for someone who’s active, hands on and who can bring in additional resources and something new to the table. It’s also a good idea to go for someone who has complementary skill sets to your own – for example, if you’re the financial or analytical brain, it makes sense to go for someone who has strong business connections, excellent sales and marketing skills and great networking abilities.
Your industry sector
Is it crucial that the BEE partner has experience in your particular industry? A person who’s familiar could make for a smoother partnership transition if they understand the daily operations and are aware of any challenges facing your sector. Shared experiences, new ideas, perspectives, and realistic plans can then be based on common ground. In order to find someone suited to the partnership, network with companies and associates in your field, attend industry related events, or connect with other sector related professionals on social media sites like LinkedIn.
Shared values and clear goals
Shared values, goals, and visions are crucial to a successful BEE partnership and, as you will both be working together for the success of the company, you’ll want each partner to bring value to the business whilst being on the same page. Clarify each partner’s role and responsibility within the business. That way, there’s less chance of misunderstandings or misconceptions.
Checks and balances
As with any partnership agreement, it’s important to verify the partner’s credentials and do any other necessary background checks. The next step is to consult with a company who specialises in BEE compliance and verification. This will ensure that the partnership will be compliant with current BEE legislation. The company should be well versed on…
- BBBEE laws
- The Codes of Good Practice
- Industry charters
- Legislative and regulatory compliance
Sound legal advice and the drawing up of legal documents is the next important step to conclude the agreement – especially crucial in cases where the new partner will be acquiring shares!
Sound BEE Advice
No matter what sector your business is involved in, SAB&T has the experience to assist with BBBEE verifications, consulting, training, gap-analysis, scenario planning, and outsourced solutions. Contact one of our branches today for a solution to your BBBEE needs.