Ask The Business Lawyer

If it's been reported The New York Times, it must be official.  :-)  A "trend" has been spotted of larger corporations reaching out to smaller ones for innovative products and services.

As noted by Anita Campbell in her Small Business Trends blog,

As a small business you can get much broader market reach through partnering than you can on your own, provided you are willing to move at the pace of the larger company. Also, with access to free resources to build your business, you can grow your business and run it smarter.

So true.  Two things to keep in mind, though. 

First, your larger partner will likely present you with an agreement that's either in microscopic print or 42 pages long.  They can contain terms that could bite you if you're not savvy about protecting yourself (for example, who will own the intellectual property rights?) . . . and you'd better believe that the 800-pound gorilla will want to protect its hide.  So make sure you have a qualified attorney review the document and explain the latent risks of the deal to you.

Second, 800-pound gorillas don't always pay timely.  Your smaller clients may pay you within 30 days, but larger ones may take their time . . . because they can.  Make sure you don't overextend your resources.  Have enough on hand to weather the possibility of late payment.