To enjoy success in a joint venture, it is integral to find the right partner as this will promote growth and productivity. It is imperative to perform in-depth research in order to get this done and due diligence as well. With this, you can save money and time by working with people who are already your customer, supplier, investor or with someone whom you’ve met socially.
As a matter of fact, in social media, you can find companies that follow you, added you as a friend or visited same pages as you do can help in forming fruitful partnership. But in order to establish who owns who, it will be critical to design and draft an agreement that thoroughly discusses these things.
The process of locating partners are going to be tedious and frustrating at some point. 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.
It is essential that you make offers that will entice your prospective JV partner and be able to talk about every single thing included in the deal from customers, intellectual property rights, finance, legal issues and so on. When you create a draft proposal, make it a point that you clearly state what your objective and aims are. Say for example that the prospective partner is pleased with your offer, you can now proceed to the next step which is creating an agreement that consist of the following details: exit strategy in the future, makeup management team, investment and stake of every party and legal status of the JV. Long story short, you must learn everything about your partnership and agreement to make sure that things go according to plan.
The major reason as to why you have to form a joint venture partnership is often because of the support you will get from a high-profile partner who has the resources you need. This might be a huge mailing list that could get significant exposure for your products fast or the proposed partner is running a forum and can help in advertising your product by putting up a banner. Basically, there are more reasons that you can find why many people are considering JV.
Since all businesses have its weaknesses and strengths, it makes perfect sense to find JV to fill the weak spots. At the end of the day, JV is about growth.