While joint venture is promoting growth and productivity, being able to find the right partner is what matters a lot. It is integral to conduct thorough research to be able to do this and due diligence at the same time. With this, you will be able to save money and time as well by partnering with existing customer, investor or supplier or with someone whom you have met in social media.
Whether you believe it or not, you can find companies that have added you as friend, following you or visited the same pages as you do which helps in developing fruitful relationship. But in order to establish who owns who, it will be critical to design and draft an agreement that thoroughly discusses these things.
At some point, it can be frustrating and tedious to locate the right partner. Just before you approach your prospective partner, it will be necessary to practice due diligence. Many different companies are publishing key financial data onto their site and available with Registrar of Companies. You need to download the latest accounts and then review it or watch news to be able to know the status about your prospective joint venture partner.
You must make enticing offers w/ the JV partner in question and discuss the everything that is part of the deal from customers, intellectual property rights, finance, legal issues and so on. When creating a draft proposal, be sure that you state clearly what your objectives and aims are. If for instance that the prospective partner has accepted your offer, you have to create an agreement that includes the details including the key aims as well as objectives, the stake and investment of every party, legal status of the JV and also, the makeup management team and even future exit if required. Long story short, you must learn everything about your partnership and agreement to make sure that things go according to plan.
The main reason to why you should form joint venture partnership is that, you are seeking support of a high profile partner who has the resources needed for continuous growth. This can be about anything like a mailing list that can help catapult your product’s exposure or perhaps your proposed partner runs a forum and can help advertise products by simply putting up a banner. Well quite frankly, you are going to find more reasons why increasing number of entrepreneurs take JV into consideration.
Because all businesses have its strengths as well as weaknesses, it makes sense to find a JV that will fill in the weak spots. Because no matter what you do, entering JV is focused about growth.