All 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. 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 finding partners will be tedious and also frustrating at some point. Much before approaching your prospective partner, it is critical that you 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 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 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 instance that the prospective partner has accepted your offer, you have to create an agreement that includes the details including the key aims as well as objectives, the stake and investment of every party, legal status of the JV and also, the makeup management team and even future exit if required. So to ensure that things will go according to plan, it is essential to learn everything in the agreement and your partnership.
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 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.
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.