Planning for Joint Venture Success
I’m not certain where the expression “fail to plan and plan to fail” came from but there is some merit in this expression. Before starting your joint venture it’s mandatory that all parties understand what they want from the relationship.
Smaller or what I call phase one businesses often want to access a larger business partners resources. These might include a strong distribution network, specialised resources or employees and perhaps financial resources. Larger businesses that have moved beyond phase one will often benefit by partnering with a business that can bring new products, services, intellectual property, are more innovative and flexible.
Partners can be found amongst your suppliers, you might benefit from their technology, knowledge and experience. Suppliers could gain by strengthening their business by agreeing to get a guaranteed volume of sales from you.
Before agreeing any deal you need to ensure that the arrangements are fair to all parties;
- Agreed understanding of what you both want to achieve.
- Realistic expectations with a measurable execution plan.
- Recognition of what each party contributes.
The key point to focus on is to turn your joint objectives into a strong working relationship that encourages trust and teamwork.
As with any plan you need to allow at least some flexibility because as the discussion unfolds you may need to adapt to any thing that you weren’t originally planning for.
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 partners,execution plan,intellectual property,joint venture,Joint Ventures,realistic expectations,relationship
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