Choosing a Joint Venture Partner

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Business relationships may lead to tragedy. Sometimes, even long time friends have fought in the name of business. And even family members that are partners in business also end up becoming mortal enemies. This is why it is very, very important to make sure that before entering a joint venture, you know what you want for a partner.

Choosing a joint venture partner is both personal and non-personal issue. Personal in the sense that you can relate to your partner freely and non-personal in the sense it is purely on the field of business. These make it very difficult to decide who will be best suited as a partner. Nonetheless, if you need a partner to help you succeed and grow, you have to take a risk. Though it may be difficult, you still have to choose a partner for the joint venture you are planning to form. Here are the tips that can help you find a joint venture partner best, if not perfect for you.

Know who you are. This may not make sense since your goal would probably to find a partner who gives you extra financial resources or probably who can have an access to a wider clientele. But knowing who you are will exactly make it easier for you to know what you need for a partner, on the personal side. Since good relationship and trust are very important in joint venture, you have to find a partner who suites your personality.

Now, this may not be a big issue for you in the beginning since you and your co-venturer’s aim is to establish immediately. The fact is, a good business success starts on the relationship of the both parties. This may be a shot to the moon but it pays when you find one perfect for you.

Know what your business lacks. Identify the things where you need to grow which can be supplied when you enter a joint venture. This will enable you to find better co-venturer since you exactly know what you are looking for.

Find potential partner. Finding a potential partner can both be done online or in a traditional way (phone calls and referrals). Do not waste your time talking to the people who are not really the one you need. Instead, concentrate on the persons that will answer the question, why do you want to joint venture?

Check and verify. Once you find a co-venturer, it is just the beginning. Screening plays an important role to make sure that your future partner is what you need. He will tell you the truth, that’s for sure, but in the business world, it pays to verify the veracity of the things he says.

Compatibility issues. It is reiterated that you need to find a joint venture partner that will answer your business’s need and your personal preference. Bottom line: compatibility is important.

Agreements. limitations, participation, organizational structure, income allocation, share, compensation, disputes, and everything that you need to disclose must be agreed upon by both parties.

In business, you find a partner who can offset what you lack and vice versa. This will effectively yield to good result. Though it is still a long ways up, it is best to start your search here.

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About the Author

Lena Benjamin

Lena will mentor and empower you to grow your business to the next level, through her common sense approach and passion for your service based business. She already has over 15 years experience growing service led businesses both large and small resulting in millions in revenue. She's a forward thinking entrepreneur, involved in a number of ventures including property (real estate), travel mobile and online platforms. Lena is a Startupbootcamp InsurTech London mentor. Additionally she has two degrees one of which is a Master in Business Administration, MBA, achieved in London UK in 2010.