It’s hard to imagine peanut butter’s success without jelly and vice versa. Without the unique qualities of both these elements, the PB&J would have its anonymity. Like this staple sandwich, so many businesses are also making successful names for themselves through their wise joint ventures with other companies.
Choosing just the right partner, however, is just as important as selecting that special someone in your personal life. If you don’t find a genuine, natural fit, it could be disastrous to both your companies.
So, how then do you make a joint venture beneficial to your company?
First, carefully consider your potential partners. The partner you eventually choose should offer very similar goods and services to your organization. If your business sells mobile phones, you’d never want to join forces with a clothing retailer–neither business will gain anything. Both parties would, however, benefit if the other business focused their service on some aspect of the mobile device industry–everything from other types of cell phones to mobile phone accessories.
In addition to the similarity in product, companies thinking of uniting must also consider their independent cultures. Some businesses are wholly concerned with customer service, but others not so much so. Such philosophical differences govern the everyday practices of your business. If you and your new partner do not share the same ideals, the business could very soon become a battle zone, not a productive environment for substantial ROI’s.
With careful consideration, you will find the perfect counterpart to form your alliance. Once you have discovered that individual, you can then turn your attentions to the finer details. What is each party expected to bring to the start-up procedures, investments, goals, plans, and follow through?
Communication in any joint venture is key. If both sides do not have a clearly outlined contract that speaks to the working of the venture, someone is sure to eventually feel that the other side is not fulfilling its duties.
Strategic alliances, joint ventures, collaboration–all are synonyms for your business’ success. Allow our expertise at 3rd Eagle to guide you to a successful joint venture experience. Please contact us today.