![]() How are they performing in terms of production, marketing and workforce?.What kind of management team do they have in place?.Do they already have joint venture partnerships with other businesses?.If you opt to assess a new potential partner, you need to carry out some basic checks: Do their brand values complement yours?.Do you share the same business objectives?.What is their attitude to collaboration and do they share your level of commitment?.You could also think about your competitors or other professional associates. The ideal partner in a joint venture is one that has resources, skills and assets that complement your own.Ī good starting place is to assess the suitability of existing customers and suppliers that you already have a long-term relationship with. the partners don't provide sufficient leadership and support in the early stages.different cultures and management styles result in poor integration and co-operation.there is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.the partners have different objectives for the joint venture.the objectives of the venture are not totally clear and communicated to everyone involved.It takes time and effort to build the right relationship. Partnering with another business can be complex. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting the commitment for both parties and the business' exposure. Joint venture partners also benefit from being able to join forces in purchasing, research and development.Ī joint venture can also be very flexible. You may be able to use your joint venture partner's customer database to market your product, or offer your partner's services and products to your existing customers. Joint ventures often enable growth without having to borrow funds or look for outside investors. access to greater resources, including specialised staff, technology and finance.sharing of risks and costs with a partner.access to new markets and distribution networks. ![]() You need a clear legal agreement setting out how the joint venture will work and how any income will be shared.īusinesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short-term projects.Ī joint venture can help your business grow faster, increase productivity and generate greater profits. It also affects your liability if the venture goes wrong. The way you set up your joint venture affects how you run it and how any profits are shared and taxed. You may want to take legal advice to help identify your best option. You should also think about what might happen if the venture goes wrong and how much risk you are prepared to accept. To help you decide what form of joint venture is best for you, you should consider whether you want to be involved in managing it. You could also form a business partnership or a limited liability partnership, or even completely merge your two businesses. ![]() The partners each own shares in the company and agree how it should be managed. A joint venture company like this can be a very flexible option. The two partners could agree a contract setting out the terms and conditions of how this would work.Īnother option is to set up a separate joint venture business, possibly a new company, to handle a particular contract. For example, a small business with an exciting new product might want to sell it through a larger company's distribution network. ![]() One option is to agree to co-operate with another business in a limited and specific way. How you set up a joint venture depends on what you are trying to achieve. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |