In Show 053 – 5 Top Things you need to know about your Joint Venture Partners originally broadcast on Facebook Live on Monday 22 January 2018 we explore this interesting topic.
Show Notes
On Fast Fix Monday we discuss the top five things you need to know before bringing on a joint venture partner. Partnerships of this kind are part of Phase 6: Maximizing your business and bringing on investors. You’d be surprised how often some obvious steps are overlooked when entering into a partnership.
1. Integrity
This may seem obvious enough but choosing the right person to enter into a partnership with is absolutely critical. You may think that someone arriving habitually late for meetings or arriving unprepared doesn’t matter but it absolutely does. Your partner must be dependable and reliable.
2. Contribution
If you enter into a joint venture with someone you need to think about the contribution they are going to bringing to the business. We have had many clients that have got into dispute with their partners over the years. Almost always the source of the problem is confusions over who was responsible for what. Those details need to be clearly articulated long before the partnership agreement is signed.
3. Exit Strategy
If there is going to be an exit from the company you need to be working with someone that understands that there is structure in place to accommodate that. Finding out about their past exits in earlier deals will tell you a lot about what they will do in your company.
4. Desperation
You can’t enter into a partnership with someone that is desperate for money. That’s a recipe for disaster. Anyone that has ever gone into business for themselves knows that it costs money to make money. You can’t have someone that is constantly trying to get paid making decisions for the company. Nor can you be the only one putting up cash for the business.
5. Be realistic
Sitting down with a perspective partners and having a frank conversations is really important.
You need to honestly discuss the worst case scenarios for the business. That conversation will ensure there are no nasty surprised for anyone involved in the business.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
