Starting a joint venture can be a great way to collaborate and build a successful business. When working as a team, you and your partner will be able to mutually benefit from each others’ skills, and you’ll likely be more efficient as a result.
However, joint ventures do not always proceed positively. When partners clash, complex scenarios can arise. If you are embarking on a joint venture in Michigan, the following are some of the things that you should consider.
Are the objectives clear?
All partners in a business venture should have clarified objectives that are agreed upon. If you have certain goals for the venture but your partner is not aware of them or does not agree with them, this could cause serious problems in the future.
Do you share the same values and management style?
Developing a strong business culture is important from the outset. You should discuss the values that you want to uphold. For example, you may want to ensure that the business maintains a flat hierarchical structure and that employees have a flexible working schedule.
Does the agreement include contingencies?
In business, the future is never predictable. No matter how much planning you do, the unexpected can happen. This is why you must address contingencies in your business agreement. You should have an agreed procedure in place to address potential future disputes so that the negative impact can be minimized.
If you are currently considering a joint business venture, you should make sure that you have the appropriate contractual agreements in place so that you can protect your interests.