Simple Jv Success Give Away Rights Ebook

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One of the most important things to consider when negotiating a joint venture partnership is the choice of the partner. Once you do, it’s imperative that you negotiate a good, fair agreement that will be profitable for you both.

When you’re negotiating a joint-venture partnership, you want it to be win/win. You have to know how to negotiate your own interests with that of your partner. A bad negotiation can doom the negotiation before it ever gets started.

Information and open communication are important in a joint venture. Traditional negotiation, however, are anything but. They’re usually secretive with each side holding back and trying to get the most for less. Vital information should be given in a joint venture, because it helps determine if the partnership will succeed. Let them know what is important to you and what has to be there for the relationship to work. In return, pay attention to the needs of your potential partner. This way, you can come up with a solution that works for both of you and will help increase the profit of you both.

Once it has been decided that two persons/businesses determine that they’ll make a good fit, outlining the small details of the venture comes next. There are many details that need to be determined during the negotiation process.

How will the profit sharing be set up? How will they split the percentages of capital, division of profits? When you enter the negotiation stages, it is a good idea to find an attorney with experience drafting a JV agreement. They can help you prepare the paperwork for a successful joint venture.

Funding for the venture can come from external sources, or the venture partners can provide their own. During the negotiations, the parties have to come to an agreement as to the percentage each will benefit in the venture. They can be 50/50, 60/40, or any split that works for the partners. Working capital requirements, losses, and expansion costs must also be considered.

It is often better to find a JV partner who is larger and more established. If you do that you can take advantage of their customer base. This may mean that you are on the low end of the percentage, such as 60/40. It can still benefit you more in the long run. Whatever the decision, both partners must find benefit from the venture, and the profit must be defined.

Don’t assume anything. Giving general descriptions of role doesn’t work. You need to create a list of each partner’s tasks, and after you complete the list, assign them to each partner. Consider all the tasks, including the expected and unexpected ones in the event of a contingency. You might come across a task that neither party can do. If that happens, you should choose a third party contractor to do them before the venture gets started. Even include responsibilities you feel are obvious like emergency planning and risk management. All tasks should be clearly defined and there should be policies written policies in case of problems. This will prevent everyone pointing fingers at each other when things go wrong. If performances are clearly defined, each party will have a better understanding of what to expect of each other.

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