How You Can Identify and Choose Your Next Joint Venture Partner?
So, how do you choose a good joint venture partner or partners?
A good place start is to look at existing customers and suppliers with whom you already have a long-term relationship. Often times your near existing economic relationships are likely to provide some good discussion points. You could also think about your competitors or other professional associates who have access to centres of excellence.
There are a number of additional considerations that will help you choose the best type of partner or alliance;
- What resources do you need that your business partner has
- How well do they deliver on their promises to their existing customers
- Are they open to a collaboration
- Do you have common business objectives
- Can you trust them
A good starting place is to assess the suitability of existing customers and suppliers with whom you already have a long-term relationship. You could also think about your competitors or other professional associates. Broadly, you need to consider the following;
Before going ahead with the joint venture you will want to carry out some basic checks;
- Financial security, what does their balance sheet look like?
- Do they have problems with access to credit?
- What kind of culture are they?
- What do their customers say about them
- Are there existing joint venture relationships
Note: It’s possible that your joint venture may have occurred because they are weak in some of these areas and you are particularly strong. There is discretion with all negotiations but tread carefully.
You can find detailed information about UK companies at the Companies House website. There is excellent support available In other countries for example in the USA there is Hoovers.
Find detailed information about companies in Northern Ireland at the Companies Registry Online website.
Before the final go ahead it’s obviously important that you protect your interests and the interests of customers, suppliers, associates and so on. My advice is to seek legal council before signing and documents. You will obviously want to protect any trade secrets, intellectual property rights and check to see if there other existing agreements in place.
Remember a simple Memorandum of Understanding will often suffice especially if the joint venture is reasonably straight forward.
Happy joint venturing
Steve has a ton of experience in implementing joint ventures and includes working with the very large $20billion + enterprises all the way down to owner managed companies. For resources and joint venture support visit Joint Venture Cash Flow
Tags:business objectives,business partner,joint venture,negotiations,promises,venture partnerRelated posts
Tags: business objectives, business partner, joint venture, negotiations, promises, venture partner
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