Joint venture is a mutual agreement between two businesses with a shared vision and goals. If it is executed well, it could dramatically contribute to your business’ growth.
Do you consider it essential that your business will keep growing at a steady rate? Does it matter that your business could readily keep up with the changes of economic landscape to ensure your business’s longevity and sustainability? Do you have what it take to answer the demands of the market?
To answer the above mentioned questions only mean that you have the lofty goal of seeing your business soar and grow on your watch, and one of the best things you could do is to enter into a profitable joint venture with a company who shares the same character as you do. This concept may be acceptable to others for all the potentials it entails, while for others it bespeaks of doom. To some, it is an opportunity to have so much to gain from, while to others it is a risk not worthy to try at all. Well, it’s a natural reaction, because indeed joint ventures are tricky, it can make or break your growth. But if only it is done accordingly, it could greatly contribute to your success in general.
On a personal note, I love the idea of joint ventures. Under its guise, I have formed the most fruitful business relationships which consequently impacted a positive growth both to my personal life and my business. Michael Masterson and Mary Ellen Tribby have a few suggestions to help some of our entrepreneur friends in choosing their prospective partners in joint business ventures:
- Strength – you have to find a strong partner, one with strong business components that complement to yours.
- Mutual gain – you to find a business partner with a capacity that you consider equal. It is detrimental in the long run if your venture started on an unequal ground.
- Limited scope – Make the extent of your venture proceed in a gradual process.
- Trust – your venture must be founded in trust, first and foremost
- Simplicity in agreement – the complex the agreement the more ground for misunderstanding
- Amicable settlement – you should have an agreed way out if ever things will not work out in the near future.
- Goodwill – Both of you must have the intention to help each other to achieve your common goal.
- Timing – Timing is everything. Put things into order first before you take the initiative of forming a venture, this will help you avoid confusion and disarray.
Joint venture could literally help you achieve a successful and fulfilling business; at the same time you will have the opportunity to forge a gratifying relationship with your venture-partner. The above mentioned fundamentals will help you get the best out of this business idea.
If ever you have had any experience with business venture, please feel free to share your experience. We will be more than glad to hear anything from you.