While a joint venture promotes productivity and growth, finding the right partner is what matters most to enjoy success. It is integral to conduct thorough research to be able to do this and due diligence at the same time. By doing this, it will actually help you to save valuable time and money by finding a partner through social media, in an existing customer, supplier or investor.
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. Great care needs to be taken into mind when designing an drafting such agreement to be able to clarify who owns who.
The process of finding partners will be tedious and also frustrating at some point. Much before approaching your prospective partner, it is critical that you practice due diligence. Many different companies are publishing key financial data onto their site and available with Registrar of Companies. It is imperative that you download the latest accounts and take time to review it or perhaps, watch news to be able to be up-to-date with stories about your prospect joint venture partner.
You should always make enticing offers with your prospective JV partner and spell out the nitty-gritty of the deal such as 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. In short, you have to learn everything about the partnership and the agreement to ensure that things will 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. Basically, there are more reasons that you can find why many people are considering JV.
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.