All good things must eventually come to an end, and that includes your joint venture agreements. However, dissolving a joint venture doesn’t have to be a negative experience. With a little advanced planning and a lot of business finesse, you can call it quits and still stay professional “friends.”

Capitalize on these steps for ending a joint venture so that everyone is happy with the process.

Check the Fine Print

If you prepared properly at the beginning, you probably have guidelines in place for dissolving your partnership. Check your contract to see what provisions were made for ending your relationship, including the time frame you agreed upon, the division of joint venture assets, and how to handle future income the partnership might continue to generate.

Consider a Buy-Out

The large majority of joint ventures end with one partner buying out the other business. If it’s still profitable, but one partner wants out to pursue other avenues, consider a buy-out option. This allows the benefits of the joint venture to continue with the partner who still wants to play the game. The business owner with the two businesses may try to go it alone or recruit a new JV partner to help shoulder the workload.

Sharing Customers

If the joint venture partners have been sharing a particularly good customer, there may be some negotiation in order to determine how to handle the situation. It is best to talk through this type of situation to continue to build trust between partners and ensure the customer is properly cared for. Your customer will also be more likely to continue to bring his business to the remaining partner if he feels the separation was handled amicably.

Keeping Confidences

It is highly likely that confidential information was passed between partners during the term of the joint venture. It is important to leave the relationship with the confidence that this shared information will remain confidential. You can create an ongoing confidentiality agreement that protects both of you indefinitely.

Future Assets

If your original joint venture contract did not address the issue of future income or assets, this is another issue you will need to discuss with your partner before dissolving your relationship completely. Determine who will receive future income and who will be responsible for future payments that might arise. This is another agreement that should be put into writing to protect the interests of both partners long after the partnership is dissolved.

Like any business arrangement, joint ventures typically sport a finite time frame. When the time comes to part ways, take the time to sit down together and go over any final issues that might arise. Put your new agreement into a written contract that can be used to hold all parties accountable for future transactions. This simple process ensures that everyone’s interests are properly protected long after the partnership has ended and that your professional relationship continues on a positive note for any future joint ventures that might arise.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

A joint venture is a strategic partnership between two businesses, designed to broaden the target market base and subsequent profits of both companies. While joint ventures are an effective marketing tool widely used today, all parties involved must understand the process of creating a JV.

To ensure your joint venture efforts meet the expected benefits, take the proper steps to protect your individual interests within the partnership.

Look at the Big Picture

Before entering into any type of joint venture relationship with another company, consider how the agreement will specifically impact your business. Since the ultimate goal is to increase your customer base and profits, determine whether an agreement with the specific company you are considering will actually meet this purpose.

The best joint venture partners are those who cater to a similar market base without directly competing with your products or services. The partner company should also have similar goals and plans to ensure you’re working toward a common end throughout the process.

Get it in Writing

Secure joint ventures put the details of the agreement into a legally binding contract that protects the interests of everyone involved. A legal contract will include the purpose of the joint venture, specific instructions on how profits and resources will be divided, and a set term for the partnership to exist.

Both companies should sign and date the agreement to make it legal and binding. You can create your contract through templates found online or through an attorney’s office that specializes in this type of business relationship.

Use Every Tool

Because joint ventures primarily revolve around marketing techniques, educate yourself about the various marketing tools at your disposal prior to creating your JV partnership. When you are knowledgeable about the different types of online marketing tools at your disposal, you’re in a better position to negotiate for the resources that will advertise your business most effectively. Once your joint venture is official, be prepared to use those marketing tools to your fullest advantage to ensure your JV is a profitable success.

Reevaluate as Necessary

Once your partnership is established, evaluate the status of the agreement regularly to ensure it is still working in your favor.

If the joint venture begins to lose its luster, communicate with your partners in a timely fashion to rectify the contributing problems or dissolve the partnership completely if necessary. If you did your homework up front, your JV contract should also contain information about steps to take if the joint venture ceases to be profitable at a certain point. Nothing can drag your business down faster than a joint venture that no longer works to your advantage.

Like any business dealing, it’s important to protect the interests of your company when heading into a joint venture agreement. By following the steps listed above, you can rest assured your joint venture will work for your company to its fullest advantage.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Having trouble landing partners for a joint venture? You’re not alone. Many small business owners find that the most challenging aspect of the JV relationship is forming it in the first place. It isn’t easy to get a larger company to sit up and take notice of your proposal, but we have tips to help.

Check out these reasons why prospective partners may not want to work with you, and then tweak your proposals to make your company more attractive to joint venture possibilities.

Your Contact is Impersonal

Form letters are usually not the way to land a job, and they are not the way to get a prospective JV partner to notice you either. Keep in mind that attractive companies may get multiple proposals every week, and they may not even read the bulk of the letters or emails that come across their desk.

Use the name of the business owner and offer specific information about their business in your proposal to show that you did your homework before approaching them.

You are More Interested in Your Own Benefit

Many JV proposals are all about the benefits the sender will receive from the joint venture. However, companies are not interested in benefitting other businesses; they are much more concerned with their own bottom line.

Begin your proposal with the benefits your partner can hope to reap from a partnership with you. Your proposal will be much more likely to be read and considered if you put the needs of the other person first.

The Prospective Partners Knows Nothing about You

Let’s face it: you might be such small potatoes to potential JV partners that they may know little or nothing about you or your company. Offer a bit of information about your business, just like you would on a cover letter for a job. Highlight the benefits you might provide to your partner. Give a brief overview of your customer profile to show the compatibility of your businesses.

Your Proposal Sounds the Same as Everyone Else’s

Whether you paste a form letter or write your own proposal, make the content stand out from the crowd. While you want to keep your proposal professional, a little creativity goes a long way. Here’s a tip: when you personalize your proposal and highlight the benefits to your prospective partner, you are already going to be seen as head and shoulders above the rest.

You are Not Persistent

No one wants to be pestered to death about a potential business deal, but a single email or letter probably won’t be sufficient in landing a joint venture with a larger company. Follow up your initial contact with a second email or phone call within a week or two. Let your prospect know in your first correspondence that you will be following up, so he is expecting your call.

Landing joint ventures isn’t easy, but it’s far from impossible. When you take the time to make your proposals stand out from the crowd, you are more likely to attract the larger companies that can have a greater impact on your bottom line.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

New Zealand High Court Dismisses Todd Energy Charges Against Joint Venture Partners

Because a joint venture usually consists of a contractual agreement between two or more businesses, there are legal issues to consider when forming one of these partnerships. Handling the legal side of joint ventures ensures that expectations are clearly defined and carried out for the best interests of all parties involved. We have four legal concerns of JV partnerships to consider before entering into one of these business agreements.

The Contract

While it might be tempting to enter into a verbal agreement with a business you are already familiar with, it is rarely advisable to form any type of partnership without a legal contract. This simple exercise ensures that all parties involved with the partnership adhere to the terms laid out at the beginning of the process and offers recourse to businesses when their partners don’t hold up their end of the bargain. Templates for JV contracts can be found online, or businesses can hire a legal professional to help them draw up a customized contract for their specific needs.

Creating a New Entity

If your JV partnership will create an entirely new and unique business entity, you will need a tax ID number from the IRS and possibly a trade name affidavit for the title of your new partnership. Check with the IRS, as well as your state government, to learn the requirements of creating a new partnership. While joint venture partners can undertake the task of creating a completely legal entity on their own, it can be helpful to enlist the help of a lawyer to ensure all necessary documentation is filed.

Purpose and Terms

When you are creating a JV partnership, you are generally doing so with a specific purpose in mind. This purpose should be the same for all businesses involved in the joint venture to ensure expectations are properly met. The terms of the agreement, including profit sharing, marketing strategies and accounting basics should also be settled before the partnership is official. All of this information should be included in the contract to ensure the interests of all parties are properly protected.

Time Frame

Unlike other types of business partnerships, a joint venture is usually a temporary endeavor. All the partners involved in the joint venture should know up front exactly how long the partnership would continue. If you are unsure of a length of time for your joint venture, at least agree on a specific date to sit down together and review the partnership. At this time, all the businesses involved can determine whether they want the joint venture to continue or dissolve.

A joint venture is a binding agreement, just like any other business negotiations into which you might enter. By addressing all the legal concerns at the beginning of the process, your joint venture will be less likely to cause disappointment and frustration for the members. When you set your JV partnership up correctly from the get-go, you will be more likely to see mutual success and benefits from your joint venture.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.