Developing a Profitable Joint Venture — Step-by-Step
By Nina Kaufman, Esq.Here’s a helpful post by Chris Flett, author of What Men Don’t Tell Women About Business, outlining four important steps in developing a profitable venture. To summarize:
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Set expectations
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Develop a style of management that all can work with
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Make it easy for contributors, staff, and vendors to work in the model
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Find a way to marry different business models — there’s a place for everyone.
As he says, “the most important thing is getting everyone on the same page, having clear and collective expectations, and doing your best realizing that your system of doing business might be very different than those of your partners.” So true.
One of the ways to ensure that you have the same understanding is to prepare a JV agreement. For what Flett doesn’t specifically mention is . . . expectations about money — how much each JV partner will put in (if any) and what you’ll each take out. This is a sensitive area you don’t want to leave to chance.
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