While a joint venture promotes productivity and growth, finding the right partner is what matters most to enjoy success. Now to get this thing done, it will be critical to perform due diligence in doing thorough research. With this, you will be able to save money and time as well by partnering with existing customer, investor or supplier or with someone whom you have met in social media.
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 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. A lot of companies publish key financial data on their site and is 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 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 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. So to ensure that things will go according to plan, it is essential to learn everything in the agreement and your partnership.
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 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. At the end of the day, JV is about growth.