joint venture marketing
During your ongoing business dealings, you may find that your markets change, your customers grow and diversify into other demographics, and even your products or services may modify into something new. This can also be the case for your joint venture partner’s business as well. If you find this happens and your JV cannot adapt with the changes, or your JV is on the road to termination for any reason, here are some things to think about that will make your JV dissolution easier and painless.
If you and your JV partner formed a separate joint venture company, you may want to discuss having you or your partner buy the other out. If the business strategy still works, but you or your JV partnership is calling it quits, then it makes sense to try and continue the business venture. If you wish to buy out the enterprise, you could try it on your own, since the business flow has already been established, or you could try to recruit another JV partner to keep the new business going.
Did you and your JV partner share intellectual or proprietary information? You will want to discuss how to unbundle your respective proprietary products or services and even sign a non-disclosure agreement (NDA) to assure that important business secrets are not revealed on either side of the JV partnership.
During your JV partnership, you may have shared some confidential information about you personally and/or business. Talk with your JV partner during your closing discussions to assure that certain information concerning you, your business, or your business clients does not get exposed. And, of course, be willing to keep the secrets of your JV partner as well.
Future Income and Expenses
Even if you and your JV partner dissolve the venture today, there may still be some residual business that must be handled and agreed upon. Determine who is entitled to future residual income from the JV activities, and who is responsible for making payments to unpaid vendors. You will also need to decide who will handle the bookkeeping of the future income and expenses if the activities do go on.
Even if you and your JV partner drew up an exceptional JV agreement and included an exit clause and strategy, there will most likely be some issues that need to be resolved. A good plan in the beginning can help your exit be more smooth and painless, but continue your dissolution with a positive attitude and business-like manner so that your closing negotiations will come to a friendly conclusion. Working to keep trust between you and your JV partner can go a long way to continuing good relations with others in your business community.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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