While a joint venture promotes productivity and growth, finding the right partner is what matters most to enjoy success. It is imperative to perform in-depth research in order to get this done and due diligence as well. 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.
The truth is, in social media you can find several companies that follow you, added you as a friend or has visited same pages as you do which helps in forming a fruitful partnership. Great care has to be taken into consideration in designing as well as drafting of such agreement in order to clarify who exactly owns who.
The process of finding partners will be tedious and also frustrating at some point. Just before you approach your prospective partner, it will be necessary to practice due diligence. Today, you can find numerous companies that publish their financial reports directly on their site which can be acquired through 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. If for example that the prospective partner accepts your offer, then you need to create an agreement that will include details which include stake and investment of both parties, objectives and aims, legal status of the JV, makeup management team and future exit if needed. 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 can be literally about anything that can help expose your products to a bigger market like a mailing list or maybe your expected partner runs an established forum that can put a banner to advertise your products. 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. At the end of the day, JV is about growth.