Yes I Love You! Now Let's do a JV!
Posted 02-09-2009 at 11:31 AM by Rivers Corbett
The Trust Factor For Joint Ventures
A Joint Venture is a form of partnership where different businesses or companies come together and share knowledge, profits, costs and risks. This is a strategic alliance many companies are using in order to get quicker results whether it comes to a new product, a project or simply expanding your market.
This is a great opportunity for Big or Small businesses. Companies find the right company to partner up with on a contractual amount of time and for a certain project. This is not a merging of two companies, but rather a temporary partnership. By sharing costs and risks you have more time and more people working on the same thing and working toward achieving the same result. One of the most successful Joint Ventures we can use as an example is Sony Erickson. They combined not their entire companies but a portion of their companies in efforts to make mobile phones, and they have come a very long way. The key in their Joint Venture was the use of each others expertise. That is the gold they found in their agreements.
The most important part of Joint Ventures is Trust. Having to share ideas, plans, costs, risks and profit with another company requires a lot of trust and with it you can go a long way. The best way to start out is by having clear set goals and plans as to how, where, why and when those goals will be acquired. By doing this before the contract is signed, it gets rid of doubts any side may have.
With this trust within the companies, you can focus on your customers and progress. With a Joint Venture you get more credibility, new clients and a new way of running things. Do not rush into a Joint Venture as you need to make sure your partners credibility checks out, and make sure you understand all the terms and key concepts before the actual transaction.
A poorly planned Joint Venture gives everyone problems as too many questions will need answering, confusions will need to be solved and misunderstandings will have to be understood. There isn't that much cost to start a Joint Venture, but it can be pretty messy to get out of one.
Joint Ventures that are well planned out, well discussed and understood entirely by both sides show great outcome. Just make sure you do a lot of research, you understand it all and you find the right company to do it with. It is best to pick a few potential and propose what it is you're hoping for. You never know that the company you want to have a joint Venture with has a completely different view on things as you have. That is something hard to work around compatibility and understanding is key here, like a relationship.
Here's to your success!
Rivers
ps...looking for a very very very very easy JV business model which can work for online and offline businesses. Check out this important joint venture only possible through me. MyRewardsBiz
A Joint Venture is a form of partnership where different businesses or companies come together and share knowledge, profits, costs and risks. This is a strategic alliance many companies are using in order to get quicker results whether it comes to a new product, a project or simply expanding your market.
This is a great opportunity for Big or Small businesses. Companies find the right company to partner up with on a contractual amount of time and for a certain project. This is not a merging of two companies, but rather a temporary partnership. By sharing costs and risks you have more time and more people working on the same thing and working toward achieving the same result. One of the most successful Joint Ventures we can use as an example is Sony Erickson. They combined not their entire companies but a portion of their companies in efforts to make mobile phones, and they have come a very long way. The key in their Joint Venture was the use of each others expertise. That is the gold they found in their agreements.
The most important part of Joint Ventures is Trust. Having to share ideas, plans, costs, risks and profit with another company requires a lot of trust and with it you can go a long way. The best way to start out is by having clear set goals and plans as to how, where, why and when those goals will be acquired. By doing this before the contract is signed, it gets rid of doubts any side may have.
With this trust within the companies, you can focus on your customers and progress. With a Joint Venture you get more credibility, new clients and a new way of running things. Do not rush into a Joint Venture as you need to make sure your partners credibility checks out, and make sure you understand all the terms and key concepts before the actual transaction.
A poorly planned Joint Venture gives everyone problems as too many questions will need answering, confusions will need to be solved and misunderstandings will have to be understood. There isn't that much cost to start a Joint Venture, but it can be pretty messy to get out of one.
Joint Ventures that are well planned out, well discussed and understood entirely by both sides show great outcome. Just make sure you do a lot of research, you understand it all and you find the right company to do it with. It is best to pick a few potential and propose what it is you're hoping for. You never know that the company you want to have a joint Venture with has a completely different view on things as you have. That is something hard to work around compatibility and understanding is key here, like a relationship.
Here's to your success!
Rivers
ps...looking for a very very very very easy JV business model which can work for online and offline businesses. Check out this important joint venture only possible through me. MyRewardsBiz
Total Comments 2
Comments
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Building trust can be tricky --- best way I know is to be honest about what you say and what you say you will do. Then, do it!Posted 02-09-2009 at 12:32 PM by Conrad Blomberg
- I agree..that's the way I live my life too but just com,ing off a month where I had to fire my "best friend" and business partner for embezzlement...it's best to protect you and your jv partner with an agreement...which helps form the foundation for the trust.
To your success Conrad!Posted 02-09-2009 at 07:21 PM by Rivers Corbett
