A partnership proposal gets a reply when it is about the other business, not yours, when it puts numbers on what each side gives and gets, and when it asks for one small next step rather than a signature. Most proposals fail the first test in their opening paragraph, which describes the sender.
There are two kinds, and they are written differently. A strategic partnership proposal goes to another company: a referral arrangement, co-marketing, a reseller deal, a joint project. A business partnership proposal goes to a person you want as a co-owner, and is closer to a term sheet: who contributes what, who owns what, who decides what. This guide covers both, with a section-by-section structure, a filled-in sample, the email that carries it, the one clause every proposal needs, and how to evaluate a proposal that lands on your desk.
What goes in a partnership proposal
A strategic partnership proposal can be a two-page document or a long email. Either way it covers seven things, in this order:
- Why them. One or two sentences on what you noticed about their business that prompted this: a new location, a product gap their customers complain about, a market you both serve.
- The idea in one sentence. "We refer our clients who need payroll to you, you refer clients who need bookkeeping to us, and neither side pays a fee for the first six months."
- What they get. In their terms and with numbers you can stand behind: customers, revenue, a product their clients have asked for, lower cost.
- What you get. Stated plainly. A proposal that hides its own interest reads as a trick.
- What each side does. Who does which tasks, how often, and who owns the relationship on each side.
- How you will measure it. Two or three figures and a review date.
- The next step. Small and specific: a 30-minute call next week, a pilot with five clients.
A business partnership proposal to a prospective co-owner needs different contents, because the question is ownership rather than cooperation: the role each person will play and the time each will commit; what each contributes (cash, assets, clients, work); the ownership split and how it is earned over time; salaries or draws; who decides what and how a deadlock is broken; and what happens if one wants out, dies or stops contributing. The arithmetic of the split is in how to split equity between co-founders, and the terms that most often break partnerships are in why business partnerships fail.
A sample strategic partnership proposal
The sample below is a plainly hypothetical proposal from a small commercial cleaning company to a property management firm. The figures are the sort a sender should have from its own records; the format is what matters.
Proposal: preferred cleaning partner for Lakeside Property Management's office portfolio Why Lakeside Lakeside took on management of four office buildings on the east side this year. Turnover cleaning between tenants is the work your building managers have told us is hardest to schedule at short notice. The idea Brightline becomes Lakeside's preferred vendor for tenant turnover cleaning, with a guaranteed 48-hour start on any vacated suite, and the two firms refer clients to each other. What Lakeside gets - A guaranteed 48-hour start on turnover cleans, in writing, with a $250 credit on the invoice for any miss - A fixed price per square foot for turnover cleans for 12 months - Referrals: our office clients who are looking for a manager are sent to Lakeside What Brightline gets - First call on turnover cleaning in Lakeside's managed buildings - Referrals of Lakeside's owners who need regular janitorial service Who does what - Lakeside: notifies Brightline when a suite is vacated; one contact, the operations manager - Brightline: confirms within 4 hours, starts within 48, sends photos on completion How we will measure it Number of turnover cleans, percentage started within 48 hours, and referrals each way. Review at 90 days. No fees change hands for referrals. Either side may end the arrangement with 30 days' notice. Next step A 30-minute call with your operations manager in the week of [date] to walk through one recent turnover. This proposal is for discussion only and is not a binding offer or agreement. No obligation exists until both parties sign a written agreement.
Each section is a few lines. The guarantee and the credit are specific, which is what makes the offer believable; replace them with whatever your business can actually promise. The last paragraph matters: see below on binding and non-binding language.
The email that carries the proposal
A cold proposal attached to a cold email rarely gets read. Send a short request first, and the proposal once they have agreed to talk or asked for it. The request should fit on a phone screen.
Subject: Turnover cleaning for your east side buildings Hi [name], I run Brightline, a commercial cleaning company with crews on the east side. I noticed Lakeside now manages the four buildings on [street], and turnover cleaning between tenants is usually the hardest work for a building manager to get done quickly. We'd like to offer Lakeside a guaranteed 48-hour start on turnover cleans, at a fixed price for a year, and send you our office clients who are looking for a property manager. Could we have 30 minutes next week with you or your operations manager? I can send a one-page outline beforehand if useful. [name] [phone] Brightline Commercial Cleaning, [street address]
Specific subject line, one reason it is about them, one sentence of offer, one small ask. A commercial email sent in bulk must also meet the federal CAN-SPAM rules: no misleading subject line, the sender's physical address, and a way to opt out (FTC). How to pitch strategic partners covers who to send it to and how to follow up.
Binding or not: the clause every proposal needs
A proposal, a letter of intent or a memorandum of understanding is meant to be a step toward an agreement, not the agreement itself. Whether a court sees it that way depends on its wording and on how the parties behaved, and a document that reads like a deal can be held to be one.
The most expensive example is Pennzoil's. In 1984 Pennzoil reached an agreement to buy Getty Oil; Getty then sold to Texaco instead. Pennzoil sued, arguing the earlier agreement was binding, and on November 19, 1985 a jury returned a $10.53 billion verdict against Texaco, at the time the largest civil verdict in US history. Texaco filed for bankruptcy, and Pennzoil eventually settled for $3 billion (Getty Oil).
Small-business proposals do not carry billion-dollar risk, but the lesson scales down: say what is binding and what is not. Most proposals should bind nothing except, sometimes, confidentiality.
This proposal is a statement of the parties' present intentions for discussion purposes only. It is not an offer capable of acceptance and does not create any legally binding obligation, except for the Confidentiality paragraph below, which is binding on both parties. Neither party will be bound to the proposed partnership unless and until both parties sign a definitive written agreement. Either party may end discussions at any time, for any reason, without liability to the other. Confidentiality. Each party will keep confidential, and use only to evaluate the proposed partnership, any non-public information the other party shares in connection with this proposal, for two years from the date of this proposal.
Put this at the end of any proposal or letter of intent. If you want some terms to bind (an exclusivity period, a confidentiality obligation), name them and keep everything else expressly non-binding. Behaving as though the deal is done, starting work or announcing it, can undermine the wording, so wait for the signed agreement. A lawyer in your state should review a letter of intent before it is signed.
How to evaluate a partnership proposal you receive
Evaluating a proposal is the same structure read from the other side. Score it against what your business needs rather than against how persuasive it is.
Questions to put to a proposal
-
Does it name a specific benefit to us, with numbers we can check?
-
Is what they get stated plainly, and is the exchange roughly balanced?
-
Are the tasks, owners and response times on each side defined?
-
Is there a measure of success and a review date?
-
Can either side end it, with what notice, and what happens to customers and data afterward?
-
Does it ask for exclusivity, and is that worth what we give up?
-
Is anything in it binding, and is that intended?
-
If they are a competitor, does it touch prices, customers or territories? (Agreements on those are illegal per se under antitrust law ([FTC](https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors)).)
-
Have we checked their references and track record?
Three answers end most evaluations early. A proposal whose benefit to you cannot be stated in a sentence is a request for a favor. One that asks for exclusivity or money before a test is asking you to carry their risk. And one whose sender will not put the terms in writing is the first red flag of a bad partnership, not a sign of trust.
When two proposals compete for the same capacity, a simple weighted score keeps the decision honest: weight what matters to your business (revenue, effort, risk, strategic fit), score each proposal against it, and only then read the covering letters again.
Common reasons a proposal gets no reply
Before writing either kind of proposal, it helps to have decided what you want from the partnership in the first place; partnership planning for beginners covers the one-page plan and the questions to ask a strategic partner.
Comments
No comments yet. Be the first to comment!
Leave a Comment