Tips For A Successful Joint Venture

By Christopher Freville

Team building for a business generally implies developing a company’s human resources to deliver the best possible results. However team building is not merely about developing your own company as a team, it is also about working as a team with other businesses. A joint venture, known more commonly as a JV, is all about teamwork with other businesses to further common goals and interests. A JV is all about business expansion, resource optimization and is not restricted in participation to just two sets of individuals or companies.

It hardly needs to be mentioned that when you choose a partner for a joint venture, it is best if you select partners with solid reputations, and are people you can trust due to their high levels of integrity. Joint ventures require a lot of effort in getting off the ground in terms of human resource development and team building as any relationship needs a lot of nurturing to grow. Trust and integrity are important keywords and both the organizations involved should stick to their promises, not do anything unethical and work towards building an atmosphere of trust.

Finding the right partner involves market research and you should only approach another party for setting up a joint venture if you are comfortable with entering a long-term relationship with them. You should look for organizations which have similar business practices to yours, for otherwise you will not be able to work with people with vastly different values and business ethics, or people who do not operate in as motivated and professional a manner you do.

You should spell out from the very beginning what it is that you expect to accomplish through your partnership. Only after you find that both your goals and those of your partner are mutually compatible and both of you agree on what it is you expect from each other, should you consider a joint venture.

Before entering into any contract, as always, you should ensure that all legal loopholes have been ironed out, like any special considerations for allocations, management issues and availability of resources, mutual gains and the sharing of the gains, any tax and any deductions based issues. You should also have a firmly chalked out business plan and which both the parties agree upon and then it should be followed to the letter, unless agreed upon mutually at a later point. A joint venture will help you to manage and allocate resources efficiently as well as optimize business policies.

When you propose a joint venture to someone you need to analyze to what extent is the venture going to benefit both parties. Only when it benefits both parties equally can you enter the venture. Also a big company will require very good reasons to enter into a contract with a smaller company or else the proposal of the smaller company will be declined.

Honesty and transparency are of the utmost importance and you have to learn with every step of the joint venture, so that you can develop future ventures in a better manner. Should any issues arise, it is best to talk openly about them and resolve them as soon as possible.

 

Contributed by:  Christopher Freville is one of the online businesses’ most successful entrepreneurs.  See how you can be like him too!  Click here nowhttp://EzineArticles.com/?expert=Christopher_J_Freville

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About Sabrina Risley
Sabrina Risley is a master connector. She’s been hosting live networking events since 2004 and has welcomed 20,000+ professionals to those events. She shares her observations, insights and tips of how the top 2% of effective and magnetic networkers build their businesses. She also shares what NOT to do when networking. Get her complimentary e-book: Strategic Networking for Success.

7 Responses to Tips For A Successful Joint Venture

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