While joint venture is promoting growth and productivity, being able to find the right partner is what matters a lot. 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. 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. It’ll be imperative that you practice due diligence before you start approaching any of your prospective partner. Many different companies are publishing key financial data onto their site and available with Registrar of Companies. You have to download the latest accounts and review it or watch news in order to learn the latest stories regarding 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. See to it that you have outlined clearly your objectives and aims when you are creating a draft proposal. 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 primary reasons why you want to form joint venture partnership is that, you want support of a high profile partner who has got the resources you need for continuous growth. 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. There are basically more reasons you can find why numerous people are now 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. At the end of the day, JV is about growth.