Exploring a Joint Venture? 10 Important Questions to Ask

Wondering whether you should start a joint venture? A joint venture is a step further than a referral partner or strategic partnership and there’s no straight answer to this question. The decision involves addressing various elements. Consider copying the following questions on a word processing document, so that you can constantly address and answer those important elements before and as you move forward. Here you’ll find 10 important questions to consider:

  1. Do I need to develop a know-how, which has already been developed by a company or by an individual?
  2. Is there a logical business partner that could help me develop a vertical or horizontal market penetration?
  3. Do I have all the human resources I need in marketing, R&D, production, or operations? Is there a company I know which would have resources complementary to mine?
  4. How do I feel about combining resources? Do I like to lead by myself and act as a solitary business hero, or am I fine with sharing the pie?
  5. Do I have access to the right legal resources to structure the joint venture and insure all aspects are duly covered?
  6. Are there local legal regulations I can bypass by partnering with a local business?
  7. Am I prepared to take the time to write a full-fledged joint business plan?
  8. Am I aware that in the vast majority of cases, merging activities, even when not necessarily identical, will result in an inevitable workforce reduction? How do I feel about letting go of some of my most faithful employees?
  9. Do I already know of a person or a company that I see has a real interest in partnering? Have I discussed this possibility with this person or with the person in charge of the targeted company? If yes, what is the general feeling? If no, then it is time to start a high-level discussion to gauge the level of interest.
  10. What are my strengths and weaknesses? What are the threats and opportunities in my target market?

Source: Happy About Joint Venturing by Valerie Orsoni-Vauthey. http://www.happyabout.com/jointventuring.php