Joint Ventures and Strategic Alliances
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IN CONCLUSION
Before starting a joint venture, make sure you are clear about what you want from the relationship. Make sure, also, that you are clear about what your JV partner(s) want and that they know what you want. Unless you are all in agreement regarding the anticipated outcome, you will be pulling in different directions and the joint venture will suffer.
As a small business, you may want to team up with a larger partner for their large customer base, broad product line or advanced business techniques. Most small businesses think of the extensive financial assistance a large company can offer. Be honest about this - there's nothing worse than committing yourself to a large company and finding they are less generous with their money than you had hoped.
If you are the larger business in a joint venture proposal, you need to be open about your desire to take over and absorb your smaller partner (if that is the case.) Nobody expects you to pour unlimited funds into a smaller JV partner (even though it might seem like that, at times) and a junior partner might be naturally fearful of losing their identity and loss of intellectual property. Good communication skills are needed.
If you want to create a joint venture or a strategic alliance for your business,
I may be able to help. My background is the construction industry — and a construction project must be the most complicated of joint ventures. My jointventure mentoring is based on 25 years of project management experience in seven countries including a very successful construction company of my own.
There must be a clear understanding of what each joint venture partner will contribute and what they will get back. I will help you turn the objectives of the joint venture into a working plan that fosters trust and teamwork. A successful joint venture will help your business develop faster, without the need to borrow - increase market share, without the need for excessive advertising - and grow profits, while providing a better service.
You may have more than one reason to engage a coach or mentor, but top performers in every field from sports to business know that the surest way to leverage your company's talents and maximize your assets is to hire a mentor.
Check here to see available mentoring options, or send me an e-mail message and let us see about getting you started on the road to a more profitable future. frederick@frederickpearce.com
Frederick
Recommended book - Strategies of Cooperation: Managing Alliances, Networks, and Joint Ventures. Strategic alliances are increasingly common, as many organizations look towards various partnering arrangements. The text has been thoroughly revised and updated, taking account of new theoretical models, and its coverage of case studies has been extended. It will be ideal for business students and managers alike wishing to understand the challenges of managing alliances.
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FREDERICK PEARCE