Those experienced in joint venture projects know that there are basic guidelines that should be followed when establishing a partnership that hopes to be both prosperous and long lasting. Proper research is the niche of an efficient Joint venture program. So basically what are the aspects of Joint venture a person should look forward to?
First, put your whole concentration on your “target industry”. Public profiles and values of the target company should match with your business brand and identity. For instance, you probably would not like to get involved with a partner in the sex industry, as you want to avoid any controversy that may hamper your company’s reputation. The need of the hour is to have enough information about the industry before diving in. The most important point to be kept in the mind while dealing is you should be comfortable with the company you are dealing with!
Next comes the “deal” you make with your target company. This is the actual creation of the joint venture. If you are new to Joint ventures, then it is better you create a Memorandum of understanding which quite simply does as the name implies: creates a written understanding of what the goals or purpose of the joint venture will be. But do not live in a delusion, thinking that a contract will protect you – it is only as good as the people behind it. Be sure to have a system to be able to monitor your agreement; seek the advice of trustworthy experts. On the other hand if you are good at it, you can remove all the cost risks; you will get an assured profit.
Another concern that is the major part of your Joint venture is the “people” you are working with. All that glitters is not gold; old saying but quite true in this case. People can claim to give you the world, over delivering things that just will not be. Get specific information and avoid getting bowled over their charisma, which can very well be fake and may leave you bankrupt if you do not take the precautionary steps earlier on. Getting reference, doing police and credit checks, and any other type of background information you can access will help you in long run. Confident tricksters use greed and ego to hoodwink their victims, So on your part a proper diligence and research is necessary.
Lastly and something which will help you forever in this business is the “knowledge”. The more you learn, the more you can earn! But beware about your knowledge source. Don’t let anyone guide you. Be your own master, pave your own way and success wont be far. Unless the person teaching you has a personal success track record, they don’t have a right to teach you. Look for support, practicality but watch out for fraudsters lurking in the shadows waiting for your one weak move.