![]() ![]() Day to day management of finances, responsibilities and processes to be followed.Intellectual property developed by the participants in the joint venture.Financial contributions you will each make whether you will transfer any assets or employees to the joint venture.A written Joint Venture Agreement should cover: You should set out the terms and conditions agreed upon in a written contract, this will help prevent misunderstandings and provide both parties with strong legal recourse in the event the other party fails to fulfil its obligations while under contract. When embarking on a joint venture it’s imperative to have your understanding in writing. It may be difficult to foster effective working relationships if your partner has a different way of doing business. Remember to consider the employees’ perspective and bear in mind that people can feel threatened by a joint venture. You will almost certainly want to identify a joint venture partner that complements your own skills and failings. Be realistic about your strengths and weaknesses – consider performing strengths, weaknesses, opportunities and threats analysis (swot) to identify whether the two businesses are compatible. You can benefit from studying your own enterprise. At the same time, you could try to identify the skills they use to partner successfully. Seeing how they use joint ventures could help you decide on the best approach for your business. You may also want to study what similar businesses are doing, particular those that operate in similar markets to yours. In fact, you might decide there are better ways to achieve your business aims. This should help you define what you can sensibly expect. It’s important to review your business strategy before committing to a joint venture. However favourable it may be to your potential for growth, it needs to fit with your overall business strategy. Success in a joint venture depends on thorough research and analysis of the objectives.Įmbarking on a Joint Venture can represent a significant reconstruction to your business.The partners don’t provide enough leadership and support in the early stages.Different cultures and management styles result in poor integration and co-operation. ![]()
0 Comments
Leave a Reply. |