JV Etiquette

At times, we come across companies that never have any dearth of joint venture opportunities. Firms keep crowding around them along with their joint venture proposals. This is perhaps due the fact these companies provide quality management to a partner and they have the required outlook and joint venture etiquette.

Substandard joint venture etiquette can entirely ruin your reputation and can throw you out of the joint venture stream overnight. Joint venture has its own set of etiquettes that need to be followed so as to ensure having good joint venture partnerships needed to provide the boost to your business.

If you aren’t getting positive responses from the people whom you approached a number of times for creating joint ventures, then you perhaps need to learn some key joint venture etiquette. It’s not always about the products and services, you must learn some tips to become a businessman with whom other businesses love to work with.

Here are some of those key etiquettes that should be there in your mind before creating joint ventures:

* While creating a joint venture, you should look out for the interests of both the involved parties. Your joint venture proposal should include the benefits your potential partner can have from the partnership. You should be precise in explaining how and what benefits the proposed joint venture can deliver. These benefits must look real and attainable.

If you are looking forward to use the large database of your potential partner to market your product, this can be observed as fraudulent. Show your future partner how your product is relevant to the database of the customers he has.

* Always remember that in joint ventures the set deadlines are sacrosanct and you should deliver what you already vowed to deliver well on time. This will help in increasing your credibility. Once you lose your credibility due to any reason, your chances for creating joint ventures in future also get fade away.

* Be open-minded and share your vision over increasing revenues of both the companies by establishing joint ventures. Suggest achievable ideas if you really want to use the customer database of your potential partner to increase your customer reach. No entrepreneur will at all be interested in having joint venture with a person who doesn’t have a proper vision on promoting business.

* Always be a good listener and stay open to suggestions from your partner. At times, the excitement of presenting a lucrative business plan makes you highly verbal and you tend to avoid listen to what your partner is saying. Answer all the queries of your partner well and clarify all his doubts to persuade him for creating a joint venture that can serve you both.

* Discuss a reasonable profit sharing plan that appeals to your partner. Also be specific about the risks involved in the joint venture and talk about the measures to mitigate them. Make sure the revenue plan you are offering must have a proportionate and sensible profit and responsibilities sharing model.