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. It is integral to conduct thorough research to be able to do this and due diligence at the same time. 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.
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. But in order to establish who owns who, it will be critical to design and draft an agreement that thoroughly discusses these things.
The process of locating partners are going to be tedious and frustrating at some point. Just before you approach your prospective partner, it will be necessary to practice due diligence. 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. 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. So to ensure that things will go according to plan, it is essential to learn everything in the agreement and your partnership.
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 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. Well quite frankly, you are going to find more reasons why increasing number of entrepreneurs take JV into consideration.
It totally makes sense to locate a JV that is capable of filling in the weak spots of your business. At the end of the day, JV is about growth.