“Growth” is the buzzword in business today. It seems we are obsessed with it, whether we’re startups, owners, board members, or marketers. And a joint venture is an excellent way to escalate profits with little upfront cost as long as the joint venture agreement you create is a beneficial one. Unfortunately, too many joint ventures begin without adequate thought or preparation, leaving them floundering dismally in no time at all.
Who is Your Partner?
You may think you know a potential partner well enough, but until you have performed a thorough background check, you should avoid any sort of formal agreement. Find out if your potential partner has any type of criminal record, individually or in his business dealings.
While most business owners are on the up-and-up, those who are not just might be looking for a joint venture to legitimize their own company.
Who is Your Customer Base?
Joint ventures are most successful between businesses that offer related products that are not in direct competition with one another. This ensures you are catering to a similar target audience and that the advertising dollars you put into the joint venture benefit both partners equally.
Take the time to fully analyze the customer base of both businesses. You want to know that the target audience is similar enough for the venture to be successful.
What Are Your Goals?
Joint ventures may come with different goals each partner is hoping to achieve. This could make it difficult to define success in the relationship. Ask a potential partner what he wants most out of his business, and what he plans to do to achieve it. Make a list of what each of you hopes to get out of the joint venture. Look for similar goals upfront before launching into an agreement.
What are the Rules?
Nobody likes to talk about rules; they squash creativity and limit the scope of the endeavor. However, rules are absolutely necessary for a joint venture to ensure the interests of both parties are adequately protected.
The rules to which you agree for your joint venture should be clearly spelled out in a written contract. If you aren’t sure what the rules should be, talk to an attorney that specializes in the specifics of a JV.
Some joint ventures are open-ended, while others have a set date to disband. Even if you don’t want to put an end date, it’s a good idea to set a date when you will review your partnership and determine whether it should continue at that time. By creating a definite time frame, you avoid a problem with one partner wanting out while the other is still benefiting from the agreement.
Ace corporate astrologer Hirav Shah who has engaged with over 500 companies…small, medium and large scale to reigning superstars in India as well as overseas suggests that it is better to get expert advice on astrology aspects of the collaboration. Some key points that should be checked thoroughly before signing the partnership.
- Name of the organization with which you are collaborating, checking if Neurologically and Astrologically it syncs with you and your company’s name.
- Check the compatibility, strength, and weakness of all partners and administrators with your Astro- Strategist.
- The percentage of shares of all partners should be correctly balanced with one another.
- The Registered Address & administrative address should be astrologically compatible with the name of the organization and key people of the company
- The Logos of the organization are either lucky or unlucky. A carefully planned logo provides guidance, confidence, faith, energy, and importance. It additionally adds value to your whole brand and business.
- Web, Print, Digital presence with perfect Logo, Colors, Fonts, Headings, Images, structure, framework all should be in the right place and in astrological harmony.
- Brand Name or DBA can provide direction and purpose to the organization. It can support sales and profit and even affect employee morale and job satisfaction.
Business Astrologer Hirav Shah who has not only built strategies for world-famous brands but has also been part of several election campaigns in India and abroad, tells us that joint ventures are highly successful methods for growing businesses, as long as they are used with the best interests of both companies in mind. By taking time to establish the parameters of your agreement upfront, there will be fewer misunderstandings and a greater likelihood of success.