How Can A Joint Venture Grow My Business?
A joint venture can bring in new skills, assets and possibly money, which will enable both parties to benefit. This leverage may enable your business to grow much faster, meet more significant customers and tackle new markets.
There are many joint ventures in operation around the world; e.g. Sony-Ericsson which is a joint venture by the Japanese electronics company Sony and the Swedish telecommunications company Ericsson to make mobile phones. The stated reason for this venture is to combine Sony's electronics expertise with Ericsson's technological leadership.
Not Sure How To Go About A Joint Venture?
Firstly you should examine your strategy and marketing plan to identify any gap in your portfolio, or territorial access (this could include a region of the UK). You then need to decide what you would like to achieve and identify possible partners.
Another key factor is talking to partners to see if there is a mutual interest. You will be surprised how many companies wish to explore expansion opportunities in a win-win situation.
We can advise, actively seek joint ventures or merely be a sounding board; ring us on 0330 053 6790 for an exploratory discussion or email us for more information via the contact us form.
What Should I Consider?
- The structure of it
- How the joint venture will be managed
- What exit routes will be available
- What information you will need
- Sharing out profits
- What the objectives are
- How it will be financed
- What will happen if further funding is needed
- What assets you will each contribute
- Who will work for the new venture
- How any disputes between the partners will be handled
For further information and advise about joint ventures, please call one of our friendly advisors to see how we can help you on 0330 053 6790.