Joint Ventures: Finding Partners

Starting a new business venture is an exciting prospect, full of promise and energy. It is also full of risk that requires careful planning to manage and minimize. On top of all that, it requires a great deal of money, and it is not always possible for one person to come up with the financing they need on their own. In many cases, it is necessary to partner with someone else so that the burdens of financing and planning are shared.

Interested in doing Joint Ventures and becoming financially independent?

It’s not just the financing you might want to share, either. If you are an idea person, but have no administrative skills, or you are a good marketer but have no product to market, a partner who has the skills that you lack can ensure that your business runs efficiently and successfully. A good partnership can make a business twice as strong and successful as it might otherwise be. Be careful, though, because a bad match between business partners can leave both of you stuck and struggling.

Here are some things you can do in your search for business partners:

• Network. The way your networking plays out will depend a great deal on your location and your business. You may connect with people at trade shows, on the golf course, at the Rotary Club, at church, or by studying the competition. Once you are among these connections, get to know people and their businesses; one way to do this is by listening more than you talk. If you let people talk about their businesses and their colleagues, you will learn a great deal about whose strengths could benefit you.
  
• Know what you need. Have you worked out every detail of your business, and just need an infusion of cash to get it off the ground? Then perhaps what you need is a silent partner, one who will leave both the decisions and the hard work to you. They will have an equal share in the profits, but you are the face and the genius behind the business. An angel works the same way. Angels are investors who are seeking money-making opportunities, and your business projections could be just what they want to see.
  
• Ask for referrals. Do this carefully; it is never a good idea to broadcast your business plans to all and sundry. But a few trusted people, such as your lawyer, accountant, or previous employer can give you information you may not have access to. They can also put out feelers to others, thereby increasing your network’s reach.
  
• Get it in writing. No matter how close you are to your potential partner or how much money they are offering, every business transaction must be put in the form of a contract and reviewed by your separate lawyers. Do not assume that just because you are in business with your college roommate that everything will work out. Cover yourself and protect your own interests; nobody else will.