How to Joint Venture With JV Partners Using a Simple 5 Step Process

Starting relationships with an unknown JV partner can be a risky proposition if you're not plugged into the variables that influence the outcome of a joint venture project.

Below are five recommended steps you can follow prior to engaging with a prospective joint venture partner:

Joint Venture

1. First, have a crystal clear understanding of your prospective JV partner's past history. Knowing what they've done in the past is very important to understanding how they can help you, and complement your business. Study their relationships with other businesses.

2. Don't let your emotions get involved. If you believe there is a match, take the time to create a formal contract that lists roles as well as responsibilities and time lines of the actual joint-venture project.

3. Strategize and make sure that your strategy is in line with that of your chosen joint-venture partner. Make sure that the strategies are tied in, both for now as well as in the future.

4. Answering these front-end questions can eliminate a lot of tension and open doors to new concepts and ideas at the beginning of the relationship.

5. Think beyond the first JV and ask yourself, "Where do we see ourselves one year from now?" Looking down the road before you get started can help you eliminate the guessing game and make sure everyone is on the same page as you consider a win-win partnership.

Finally, begin the relationship with the end in mind. Visualize what is going to happen over the course of the joint venture partnership. By doing so, you're going to eliminate the guessing game, improve your relationship and ultimately achieve the results that you're looking for.

Time has taught all of us that by having upfront, open communication with good joint-venture partners can improve business relationships, and you'll find that once you go through the joint-venture process - just one time - things become a lot easier to manage and you are able to make the most out of your daily interaction with your joint venture partners.