Thinking About Collaborating with Another Business Owner? Read This First.
Have you ever met another entrepreneur and thought, “We should totally do something together!” Maybe it’s a joint workshop, a podcast, a course bundle, or a styled brand shoot. Collaborations can be incredible for growing your audience, sharing your expertise, and reaching new clients.
But before you dive in, let’s talk about something many small business owners overlook — the Collaboration Agreement.
Because even when everyone starts out with the best intentions, things can get messy fast without one. A clear, written collaboration agreement protects your time, your work, and your business — and ensures your partnership stays positive and productive.
What Is a Collaboration Agreement?
A Collaboration Agreement (sometimes called a business collaboration contract or joint venture agreement) is a written document that outlines each party’s roles, responsibilities, and rights in a shared project. Think of it as your collaboration roadmap — it defines the who, what, and how of your partnership before any work begins.
A good agreement isn’t about mistrust; it’s about clarity. It helps everyone know what’s expected and what will happen if something doesn’t go as planned.
Why Small Business Owners Need a Collaboration Agreement
If you’re thinking, “We’re friends — we don’t need a contract,” you’re not alone. Many entrepreneurs skip the legal step because they assume trust is enough.
But collaboration agreements aren’t about mistrust — they’re about mutual respect and protection.
A written agreement:
- Clarifies who’s responsible for what
- Protects your intellectual property and creative work
- Outlines how profits, expenses, and payments will be handled
- Prevents misunderstandings before they start
- Provides a clear process if disagreements arise
Whether you’re teaming up for a one-time project or a long-term collaboration, an agreement sets clear expectations and protects everyone involved.
7 Key Clauses to Include in a Collaboration Agreement
A strong collaboration agreement should cover (at a minimum) these essential areas:
1. Purpose & Scope
Describe the goal of your collaboration — what are you creating or offering together, and for how long?
2. Roles & Responsibilities
Define exactly who’s doing what. Be clear about deliverables, deadlines, and expectations so no one is left guessing.
3. Money Matters
If your collaboration involves money, be specific:
- How will profits or revenue be split?
- Who pays for expenses?
- When and how will payments be made?
4. Ownership & Intellectual Property
Decide who owns the final product, materials, or content. Is it jointly owned? Do you each own what you contributed? Can either of you use the materials for your own marketing later? Can either of you sell it independently later?
5. Confidentiality
If you’re sharing client lists, marketing strategies, or other private information, include a confidentiality clause.
6. Duration & Termination
How long will the collaboration last?
What happens if one party wants to exit before the project is complete?
7. Dispute Resolution
Agree in advance on how you’ll handle conflicts — where (what jurisdiction and venue) will disputes be decided? What state law applies? Is mediation or arbitration a less expensive alternative to suit? (hint: not always!).
What Can Go Wrong Without an Agreement
Without a written agreement, you’re relying on memory and goodwill — which can fade fast once deadlines, money, or recognition are involved.
Here are a few real-world examples of where things can go wrong:
- Disputes over who owns photos, videos, or course materials
- Unequal workload or financial contributions
- One person using joint content long after the project ends
A simple, customized collaboration agreement can prevent these issues and keep your partnership on track.
The Bottom Line
Collaborations are a beautiful way to grow your business — when they’re built on clarity and trust. A Collaboration Agreement doesn’t have to be complicated or intimidating. It’s simply your way of saying:
“I value our partnership enough to make sure we’re both protected.”
So dream big, create boldly, and collaborate with confidence — just make sure your legal foundation is as strong as your creative vision.
Ready to Protect Your Next Collaboration?
If you’re planning to partner with another business owner or creative, I can help you draft or review a custom collaboration agreement that fits your specific project — so you can focus on the fun part of working together.
Book a Free Consultation to get started.
