Joint Venture Risks To Be Prepared For

Regardless, if this is your first joint venture marketing relationship or fiftieth already in place there are several items that are important to be aware of to minimize the risks that may jeopardize your existing business operations. When announcing a new joint venture make sure that potential problems with customers have been identified so they can be resolved asap. Keep a good line of communication with decision makers from the partner company to ensure fast resolution to any problems can be communicated to all key individuals responsible for handling the partnership. Understand the way your partner company operates and develop relationships with the key individuals that need to be on board in order for the relationship to be successful.

Customer Problems

Identifying where there may be a potential customer problem is the number one joint venture risk, if someone does not perform, an existing customer could potentially be lost. If this occurs because of how a partner serviced the customers’ needs and acted during the process than it’s a poor reflection on both companies and harms both businesses. As soon as a business makes a recommendation they are also responsible in the consumers’ minds for their experience with the partner business. If they get turned off by their actions they may quickly take their business elsewhere altogether. The best thing is to make sure and do a blind test with a new partner so you are 100% confident of how the new partner will be receiving and servicing the clients referred over. If only quality partners are brought into the business model and they fit in terms of industry and customer bases then there should not be problems with customer interactions or any confusion among customers as to what is the purpose of the new joint venture.

Communication Failures

Setting up a new joint venture is usually the easiest part of the whole marketing strategy, however failing to be properly communicate while implementing everything required is a significant risk. If a business is not fully capable of honoring the details in the joint venture agreement it is not worth moving forward with the marketing partnership. It is absolutely mandatory that both parties have clear and open communication channels with the individuals that are directly controlling the process from receiving a new business lead, selling, and then servicing the customer’s needs. To eliminate risks it is vital that communication channels are clearly defined and counterparts from both companies communicate regularly.

If there is a communication breakdown between joint venture companies when both are servicing a company and they need to work together in order to meet deadlines on a project it can be catastrophic to the relationship quickly. Other communication failures that often occur are failing to follow each item in the JV agreement from things as simple to not sending an approval email before going to print with marketing collateral to as severe as not properly reporting all sales transactions as determined in the agreement. Failure to communicate according to everyone’s expectations is a big reason many joint ventures eventually stop working or fail to get going after the initial agreement is put in place.

Internal Company Issues

It is vital when assessing potential risks that are present with a new joint venture marketing partner to learn about the company’s culture, decision making process, and who the real catalysts and decision makers are within a company or division. Failing to know who is really making the decisions regarding supporting a joint venture is a major risk. When developing a significant JV marketing relationship it can be vital to wine and dine decision makers as well as people that are potential gate keepers to those decision makers. When everyone in a company is supporting a new joint venture the chance for failure is reduced. It is a significant risk to do a joint venture if only one or two people are on board with the partnership for whatever internal reasons and success will involve more than the one or two that are committed.

Develop strong relationships with the individuals participating in a joint venture to ensure you have great communication and fully understand the purpose of the JV from the other company’s perspective and you will reduce your joint venture risks and be more at ease entering a new business relationship.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Lessons Learned From High Profile Joint Venture Examples

Business news headlines feature successful joint venture examples throughout the marketplace, and across industries. Their success showcase reasons why joint ventures make sound business sense for companies. One reason includes the ability to share the expenses of launching a new product line related to research and development. Pooling their technological resources is another significant advantage. Additionally, joint ventures don’t usually face the same stringent government regulation that normally haunts mergers.

Driving to joint venture success

In the automobile industry recent joint venture examples include the successful teaming of Ford and Mazda. Dubbed ‘The Auto Alliance International’, which began with Ford’s idle body-casting center located in Michigan. When Mazda embarked on an expansion program, they paid for the plant and used it to build their vehicles. Later, Ford wanted a piece of the action and reached an agreement with Mazda to buy back a 50 percent stake in the property. Today this site produces both Ford Mustangs and the Mazda RXs. This is a picture perfect model for those looking for an example of how even competitors can work harmoniously toward their own goals.

A prescription for joint venture success

The pharmaceutical sector in recent years has seen several successful joint venture examples as the industry continually seeks ways to reduce the costs of research and marketing. Novartis and Procter & Gamble joined up and brought the drug Enablex to the marketplace together. At one point, Novartis was marketing the drug as Emselex, a prescription offered to patients for the treatment of incontinence. Eventually, Novartis sold the U.S. rights exclusively to Warner Chilcott. By saving money on the front end with their first joint venture agreement, Novartis was able to make their business attractive to other bidders. Currently, Enablex has an estimated 25 percent market share globally.

When considering a joint venture partnership, it’s necessary to keep your eye on moving the ball down the field toward success. If the long-term goal is to sell off the separate entity, remaining lean but sound is critical to attract future offers.

Mobile industry joint ventures

Successful joint venture examples in the fast growing mobile industry include Sony Ericsson. Sony, the popular company from Japan, is well known for its excellence in marketing electronics globally. The hallmark of the Swedish company Ericsson is the technology they have produced aimed at telecoms. The two formed a hard to beat alliance producing high quality mobile phones. The two companies tapped into their extensive marketing network, and stellar reputations to create a strong alliance.

Look around your community or industry to identify market leaders, which offer products, or services that can compliment your business efforts. A bookkeeping provider does not have the same expertise as a tax professional. They perhaps would consider forming a partnership with a tax firm because their clients need this service. On the other hand, a tax attorney or firm does not want the daily or monthly management responsibilities related to bookkeeping. Together, a joint venture will allow the two partners to expand their knowledge, personnel and customer base.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

How To Increase Your Wealth Through Joint Ventures

How to increase your wealth is probably one of the most asked questions in the world. The challenge is there are no guaranteed answers for success. Progress depends on your capabilities, education, efforts and opportunities. The potential to increase your wealth on your own is one thing, finding a partner for a joint venture agreement opens up an entirely different pathway.

A joint venture is a business agreement, and the parties are all about contributed equity. In other words what do you bring to the table? So, where do you start when asking how to increase your wealth through joint ventures? Here are a few steps to consider:

Choose the right partner

This is often the hardest part, as the first step is generally the biggest challenge. Everybody will guarantee you the best deal and easy money, but do not fall for it. Carefully consider what your future partner is offering that balances out your areas of weakness. Choose wrong and you can fall further behind the curve because of wasted time and other resources.

Before you even approach someone or respond to a joint venture partnership offer, learn all you can about the individual or organization. Try to discover:

• How well is their business performing?
• What is their motivation for the partnership?
• Are they open to the idea of collaboration?
• Do you have the same business goals?
• What is their reputation in the marketplace?
• What does their financial background look like?

Sharing information and technology

If you want this to work, both sides must act as one. The joint venture partners need full access to technology and financial reports essential for the endeavor. While you need to have a strong working relationship, do not let your guard down as it relates to financial reporting. It is especially relevant to keep track of any business moves, no matter how insignificant they may seem. You should share all relevant information with your joint venture partner, and demand they do the same to avoid surprises down the road.

Take advantage of your partnership

Of course, in a good way! In today’s economy, it’s a challenge for small businesses to survive alone. Withholding key business information can hinder the success of the endeavor. Share market insights, marketing tools and customer contacts where relevant to the success of your joint venture. A partnership can also save you money by eliminating new employee hiring costs. If you attempted to expand on your own when creating new products or services, new staff is often a significant part of the investment costs. Reducing your expenses is an effective answer to the dilemma of how to increase your wealth.

The capacity

Let’s face it some businesses never reach the top on their own. It doesn’t always mean they’re not smart enough but having the right resources could have made the difference. A joint venture partner can help your business grow efficiently and cost effectively. Otherwise you may be full of exciting ideas, but with limited resources, those ideas will never come to life.

Entering a joint venture may be a tough decision, but it is worth taking a chance. Thousands of companies have found JV partnerships are an effective way to answer the question of “how to increase your wealth”. However, in order to achieve success and avoid risky situations, it’s necessary to define the process and take it one step at a time.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Common Joint Venture Risks And Effective Solutions

Considering all possible joint venture risks carefully before potential partners finalize their agreement is essential. This should continue throughout the lifetime of the partnership. The process of partnering with a different business is not always a walk in the park. However; the time investment for a full assessment is worthwhile to ensure the partnership runs as smoothly as possible. Both sides need to fully understand the risks involved with integrating personnel and the relevant financial fundamentals of the each other’s businesses.

What are your objectives of the joint venture?

It’s important to communicate the objectives of all partners with the shareholders. Otherwise an unknown or unidentified conflict of interest may arise. Keep in mind that during the planning stage of the partnership, each side is in a “wooing phase” and on their best behavior. Enjoy it while it lasts. Be prepared for the end of the honeymoon because it will end. If goals, responsibilities and roles are not clearly outlined, a more assertive partner may attempt to impose their objectives and goals absent a thoroughly planned agreement.

Some of the more prominent joint venture risks include; differing ideas on how to raise capital, financing agreements, and spending philosophies. Be sure to consider whether the JV operations will be capital-intensive or labor intensive. One partner might prefer heavy investment in machinery or technology for a competitive edge. The other may prefer more investment in labor-intensive techniques to avoid tying up capital.

Other common risks may involve personnel and staff integration. The two teams are perhaps worlds apart in terms of expertise, and technical sophistication. Often it requires expensive training to bring the other side up to speed. The new JV partners may also encounter a deep-rooted resistance to change from their respective staff. The risks abound when employees remain too entrenched in their previous philosophies, corporate culture and work environment. Territorial battles ensue over the new system, and non-compliance often leads to increased staff-turnover.

Joint venture risks related to intellectual property and financial information

Another area of contention is how much information to share. It may not be necessary or required to provide the other partner full access to something like production secrets. A number of joint venture marketing agreements are between two related, but not directly competing businesses. A soft drink manufacturer might enter into a partnership with a confectionaries producer. In such a partnership, the soft drink manufacturer would not necessarily find the need to share their soft drink formula and vice versa.

Joint venture risks dependent on capital spending can arise when one side refuses to share exact details related to their financial backers. Sometimes there is reluctance to offer the full details about future investors out of fear the potential partner will contact the investor directly. This leaves their prospective partner concerned that they do not have a true financial picture.

Being aware of the potential risks involved in a joint venture partnership is not enough. Efforts should be taken to protect each company as much as possible from the adverse effects of poor planning and the lack of a thorough evaluation. Building the right relationship from the start is ideal. This should minimize ill feelings that could develop between the new teammates. Adequate research, negotiation and compromise are necessary when developing shared objectives in a joint venture.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Legal Tips to Keep in Mind for Joint Venture Partners

Joint venture marketing is just as it sounds, the involvement of two or more businesses or entities partnering up in order to build up a solid base of customers and to profit. It then becomes a legal organization. However, instead of a partnership being formed for the purpose of individual profits or gains, the joint venture may be formed for the intention of developing a product, marketing strategy or intellectual property (the mind’s creations such as inventions, symbols, works of art and/or name and images used in commerce).  The two categories that it breaks down into are: Industrial Property (industrial designs, trademarks, geographical indications and patents for inventions) and Copyright (all literary works, musical works, films and all artistic works. Copyright also includes all involved in the artistic such as performing artists, broadcasters and producers).

A contract protects the partners of a JV marketing agreement

As with any agreement, a contract is drawn up to protect all parties involved and to lay out certain stipulations. This is effective in that each business understands their responsibility, their rights and their expected participation in the agreement. There are many points to consider when entering into a contractual agreement because whether the partnership is short or long term, there are key elements that should be enforced or included in the agreement.

Key components of a joint venture marketing contract

To protect all parties involved, key considerations often included in a Joint Venture contract are: assignment, amendments, confidentiality, dispute resolution, dissolution, governing law, indemnification and intellectual property. The contract could also include the bookkeeping and records, mission statement, bank accounts, capital contributions, division of profits and losses, place of business, management duties, expenses, term and termination and other business interests.

Each of the topics mentioned above could be a subsection in the contractual agreement between the participating joint venture partners. When the agreement is broken down into sections, you can see the legal implications and obligations that would fall into each separate category. Detailing each section legally, with mutual consent, this signed document will become a binding contract that can be upheld in a court of law if necessary. Contracts, state partnership and commercial transaction laws govern joint ventures in the United States. The partnership is also responsible for federal income tax. If foreign countries are involved in the joint venture agreement, the parties are also subject to the laws that are in place within those countries, as well as the international trade laws.

The key details of the joint venture marketing agreement

Compensation, partner shares, and income should also be determined on the agreement, so that no discrepancies will occur. When these clauses are included (whichever ones you choose from the list above) and rules or guidelines are written in each section, the joint venture marketing agreement becomes legally binding once all parties involved sign it. Business must always be separated from personal feelings and attachments. Meetings should be held between the involved parties to discuss what the expectations of each are. All parties should be involved in discussing and contributing to the terms set in the agreement.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Talking Points You Need to Know Before Forming a Joint Venture

There are many situations in the diverse world of business today that justify the need to enter into a joint venture marketing partnership. After hearing about joint venture marketing, someone might be excited about having their business transformed by creating an alliance with another successful and related business. However, the business world is full of rough-and-tumble personalities which will require you to tread cautiously in order to function efficiently and avoid getting the short end of the stick so to speak when it comes to a JV agreement. Here are several key points you cannot afford to ignore before entering a joint venture partnership.

Do the companies complement each other?

First of all, the potential partners should deliver a product and/or service that complements or at the very least is related to both companies. Obviously you’ll want to avoid partnering with a business that competes directly with your company’s products or services. Offering complimentary products or services in your new joint venture will go a long way to make the partnership a successful one. For example, home décor products would go well with a company that provides consumer electronics.

Does your potential JV partner have a compatible strategy?

The scope of the other partner’s strategy should not clash with yours. If you have a long-term plan in mind, it wouldn’t make sense to partner with a company that’s only in the market for the summer. Keep in mind the scope of your combined strategy will also influence things such as marketing plans, employee recruitment and training, and other short-term goals you may have for your business. Additionally, the combined strategy, whether it’s capital intensive or labor intensive will depend on the size of the businesses involved.

Another factor to take into consideration when reviewing whether or not you and your potential partner’s strategies are compatible is each company’s timeline. Know how soon the other partner plans to do some crucial tasks. Know how often they borrow or pay off loans. Without time lines, a business is just drifting with the current, lunging at any piece of business that drifts downstream. This is clearly not how a profitable business should operate. It’s also wise to crosscheck what customer base the other business already boasts. What quality is there and what room for improvement exists?

Is your potential JV partner financially sound?

Finally, the capital base that exists should be given top priority at the outset. Can you picture entering into a joint venture marketing agreement with a company that is going to declare bankruptcy tomorrow? Often, the integrity of both partners to the businesses will take a beating if one of the two declares that he cannot meet financial obligations. It’s highly recommended to have an attorney draft up an agreement to clearly outline which obligations, whether financial or otherwise, will be handled by which partner. That way, it’s not one person holding the reins of the agreement. The golden rule is being willing to treat the other partner’s business as if it were your own.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Venture Agreement: A Separate Company or Contract

Sometimes the goal of a joint venture marketing project is to create an entirely new brand or type of technology. Since this is an expensive venture that requires many different types of resources, JV marketing agreements are usually a great way to accomplish this goal. However, there are many aspects that need to be considered when doing this. The main decision that needs to be agreed upon by both companies is whether they are going to remain two separate entities marketing a shared product, or if they’re going to come together and create an entirely new company and market it under a different name.

To Merge or Not

If the two businesses joining together already have established reputations, the best option might be to remain as two separate companies. The company names already have brand awareness and will sell the product more successfully than a new name. Including both well-known and established names on the product could increase its credibility even more.

However, it is possible that the companies will feel that the product will sell more successfully under a different name. This is the case when the product being created is not one that’s usually sold by either business. Giving the new joint venture its own name will allow it to build its own reputation. In this case, it makes sense for the companies to join together and create a new company under a third name.

When two businesses considering a joint venture don’t have well-established reputations in the market, creating a new company may prove more beneficial. If one or both of the companies have gained negative reputations for any reason, omitting their respective names on the new product or service will probably serve as a better choice. If the company names are simply not well-known, having a new name will not hurt the marketing campaign. This way the new joint venture name will have an opportunity to build its own reputation.

Nevertheless, if it’s believed that the product or service will enjoy great success, it might also be decided that using the individual company names instead of a new name might be better. This way both of the companies will receive publicity for the new product, increasing their individual reputations.

Consider the risks of the forming a new company

There are risks regardless of whether the companies involved in the project decide to join together as a new company or remain individual companies. As a brand new company, the name will not be known on the market, which has the potential to hurt the marketing of the product. However, keeping the original company names has risks as well. If one of the companies is more well-known than the other, they might receive all the credit for the product’s creation by the public. But if one of the companies has a negative reputation then the other company’s reputation could be hurt by it. Before making any decisions on the matter, there are a lot of factors that need to be considered.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Legal Advice for Joint Venture Marketing

Like almost any business venture, legal advice is generally used when forming a joint venture marketing agreement. This is the wisest way to go to protect the company’s assets in the event the business venture is not successful. While a well-planned out venture generally has no reason that it should fail, it is always important to protect the company. On the rare occasion that two businesses are only going to interact for a very short period of time and there are not any high risks involved with the project, then legal council is probably not necessary. For the vast majority of joint business marketing ventures, however, it is wise to include legal advice.

Choosing an attorney

Selecting an attorney for the joint business marketing project can be a difficult process. The company that initially comes up with the plan will probably want legal advice to help them draw up the outline for the project. However, it is not a good idea to approach the other company under the assumption that the project only needs one attorney. The offer for the other company to have its own legal council should always be extended. This way the second company doesn’t need to fear they’re going to somehow be tricked. The second option would be for neither company to use their own company’s legal counsel, but instead hire outside, impartial legal advice. This way the cost of the attorney could be split without one party being unfairly represented. However, hiring an outside attorney will increase the cost of the project. If both companies already have their own attorney, then that is usually the best option to choose.

The most important stage of any joint venture is to have legal counsel present when both parties sit down to draw up the plans for their project. When making agreements such as which company is going to pay for what and how much revenue each company will earn, it’s very important to have binding legal contracts that cannot result in an unfair advantage to one party or the other. If both parties are sharing the cost of legal counsel, then it is obviously only necessary for the one attorney to look the plan over. If each party decides to have its own attorney, however, it is important that both companies’ legal counsel look over the plan and that they both agree that it will work.

After the initial plan has been approved by both companies and the legal counsel, it is up to the individual businesses to decide whether they wish to keep the legal advice on board for the rest of the project. Obviously if both parties are using company attorneys, then it only makes sense to keep them on hand. However, if both parties are comfortable with dismissing the legal counsel after the plans for the business venture have been agreed upon, then doing so will save both companies money. In the end, the most important thing with legal advice is that both parties feel comfortable with the situations they are agreeing upon and that both companies’ assets are protected.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Venture Marketing – What is the Goal?

When considering joint venture marketing the first question you should ask is what is the goal? Working with the competition does not seem as if it would be a wise business decision, but there are many situations where two different businesses teaming up together can result in good outcomes for both parties. A joint venture is when two businesses do just this – team up together for a decided amount of time, possibly creating a new entity with its own assets and share the revenue that results from the project. The goal of a joint venture marketing project is for two businesses to accomplish something that they ordinarily could not do by themselves.

Kicking off the joint venture marketing plan

The first step to this process can often be very difficult. The company that comes up with the idea has to be able to explain to the other company why it would be a good idea for the two of them to team up together. A plan created where only one company benefits won’t work because the other business will not see the benefit. Both sides have to see how the joint venture would be beneficial to them. The benefits that each party will be receiving do not necessarily have to be the same, but they do have to be important enough to convince the other business that it would be more beneficial for them to team up than not to.

After both parties are in agreement to work together, have clear plans drawn up of what they are going to do. It needs to be decided which employees from each business will be working on the project. Situations such as whose office the participating workers are going to meet at need to be addressed. If one company has better technology for one aspect of the venture, but the other company has something else that will benefit the project, then it is probably a wise choice to use both locations depending on what is being worked upon on a given day.

The finances of the joint venture marketing plan

One of the most important things to decide is how the expenses will be split. Since the cost of starting a new business venture is usually quite high, teaming up with another business is a great way to make it more affordable for everyone. Also, the partners need to decide how the profits are going to be divided up in the end. If one party is doing more work than the other, it might be decided that they will receive a greater percentage of the profit. In most situations, however, the best thing to do it split the profit evenly.

Wrapping up the joint venture marketing game plan

Depending on the goals of the joint venture marketing project, the amount of time that the parties will work together will vary. Some objectives can be reached in less than a week, while some companies remain partners for years to reach their goals. If the venture goes well, it is a wise idea to stay on good terms with the other party even after the project is over. This way, if another situation arises in the future that both parties could benefit from, the other party is more likely to agree.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Effectively Negotiating a Joint Venture Marketing Agreement

After you’ve decided to enter into a joint venture and found a potential partner, the next step is the negotiation. “Give and take” is important to understand in the negotiation process; without it a successful agreement cannot be made. The power of a joint venture is only as strong as the negotiation behind it.

Tips for Effective Negotiations

Face-to-face interaction and tactics are key factors in a successful negotiation. Equally important is the proper layout and preparation of goals, benefits and risks of the venture. Keep in mind that in any successful negotiation, both parties walk away feeling they will benefit from the arrangement.

Perform extensive research on the type of business you’re preparing to negotiate with. If possible find out what problems they have and what their profit margins and resources are. Use the Internet as a research tool, read industry publications and talk to the company’s customers or employees. This research will help you be more effective in the negotiation process.

Learning everything you can about your potential partner is important, but being prepared to offer important information about your business is also important. Outlining the benefits of entering into a venture with your company for your potential partner as well as discussing what you hope to gain from the venture is a good strategy for negotiations.

Speaking of “give and take,” you should go into the negotiation process prepared to compromise. You should have the best- and worst-case scenarios along with the benefits of each case. As you begin the process, start off with the best outcome you hope for first. As the negotiation process matures, prepare to compromise, but do not lower your standards.

By leveraging existing resources instead of creating new ones, this will help both parties keep costs down as much as possible. If the venture does not work out as planned, both partners will not lose if they use their combined resources. Also pooling your resources can be an effective way to deal with each other’s shortcomings; what one company lacks the other company excels in.

Some other helpful tips are honesty and transparency between partners. Starting your venture on the right foot will ensure the longevity of the partnership. Regular contact with your partner is essential in making sure your current arrangement is going as planned and making adjustments as needed. Effective ventures are essential in business growth, profit increase and growing the customer base.

Put it in Writing

All successful negotiations end in writing a contract. The contract needs to include the overall goal for the joint venture, a timeline for the venture and the benefits each partner hopes to gain from the agreement. If a timeline is not solid, put a date down to revisit the JV partnership. Also include all fallback options. In the event the partnership does not work, both parties can make a clean break. A well-prepared contract is paramount. Each party should think about hiring a legal representative to help protect you and your potential partner’s interests.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

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