Everything You Must Know About Joint Venture
While joint venture is promoting growth and productivity, being able to find the right partner is what matters a lot. Now to get this thing done, it will be critical to perform due diligence in doing thorough research. 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 needs to be taken into mind when designing an drafting such agreement to be able to clarify who owns who.
The process of locating partners are going to be tedious and 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 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 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. 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 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. 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. Because no matter what you do, entering JV is focused about growth.