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 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 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. Today, you can find numerous companies that publish their financial reports directly on their site which can be acquired through 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.
It is essential that you make offers that will entice your prospective JV partner and be able to talk about every single thing included in 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 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. Because no matter what you do, entering JV is focused about growth.