Sunday, 14 August 2016

Top Tips On Selecting Joint Venture Project Funding Partners

By Anna Smith


The process of finding the best people to partner with can be intimidating for beginners. However, even when you are experienced in joint venture project funding you should never stop learning. Read ahead for actionable tips that will help you get the best associates to help you kick-start your idea.

This may be hard to believe, but finding appropriate joint venture partners is not hard as it sounds. One of the most preferred starting points is within your personal networks. Explain to almost anyone who cares to listen about your plans and the kind of project you envision. They could be your friends, workmates, peers or family. In addition you can use the power of social media to attract relevant attention.

For anyone to invest in your idea, they need to understand all the fine details involved. You should clearly explain the details of the job in very clear terms to your potential partners. They will have to understand the idea and the proposed strategies before they can finance it. You are advised to put every aspect of the project down in writing so that they can seek the necessary clarifications.

Not everyone who shows interests in your project is an ideal partner. As challenging as it may be, you need to come up with a criteria of eliminating people you do need. Any reliable ally worth your time should meet certain requirements. They should have the skills that you lack and therefore compliment your strengths.

It is also critical to pick people who you share with similar work habits. Both of you will have to agree on the amount of work to be done in order to achieve certain objectives. You also need a person who exhibits self-sufficiency in such a way that they can work without your direct input. This makes choosing someone you are familiar with an important consideration.

At the beginning of the job, there are a number of things all parties need to agree upon. The intended relationship between the associates needs to be set out. In general, all of you need is to finance the idea and share the products according to the proportion of their contribution. Remember, you should avoid sharing out profits as yours is not an incorporated venture.

The success of the venture will depend upon the understanding of the goals and objectives among the associates. Important issues such as time-frame within which works need to be completed should also be understood. To make everything work flawlessly, you are advised to come up with a good business plan at the beginning.

All of you will also have to agree on the exit mechanisms applicable. It is common knowledge that at some point parties may opt out. Therefore, there should be a document spelling out what needs to happen in such instances with regards to their interests. It is also critical that conflict resolution methods are agreed upon from the start.




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