Businesses of all sizes combine forces via joint ventures to harness their potential and build relationships depending on their needs. There is often strength in coming together. Done right, a joint venture can help a business increase its productivity, access new markets, share business risks and costs and grow its bottom line.
A joint venture is, essentially, an agreement between two entrepreneurs or entities to work towards specific business goals together. This can be built as a separate business entity or simply carved out of an existing contract between the parties. However, it all starts with getting the right partner.
Common questions to ask
The right partner for a joint venture should bring to the table resources that complement your own. A great starting point is an honest assessment of your current clientele and suppliers. To get you headed in the right direction, here are some of the questions you might want to ask when vetting potential partners:
- Do they share the same business goals, vision and acumen as you do?
- What is their financial status? Do they have credit issues? Have they recently filed for bankruptcy?
- Are they in other joint ventures with other partners?
- What is their business structure like?
- What is their production and marketing performance like?
- What is their reputation among other professionals like?
As an entrepreneur, there are times when may you need collaboration to grow and realize your dreams. No matter the case, we help businesses understand their legal options and protect their interests when partnering with businesses and individuals. Contact us for a consultation.