Companies pool their resources to create value and gain a competitive advantage by entering into joint ventures (JVs). The companies must build and maintain a good relationship with each other in order to successfully collaborate and grow their new, joint business entity. Below, we list some tips to keep a healthy and open joint venture relationship.
Get your relationship off to a good start. Try appealing to both companies’ strengths at the beginning to form the best foundation for the growth and improvement of your business.
Be open to change
Keep a flexible relationship. Regularly evaluate the business potential and ways to advance and expand success. Allow room for change in business goals and objectives.
Communication is key
Communication is what builds a stong relationship. Keep a constant line of communication and host regular, in-person meetings for all the principal members involved in the joint venture.
Stay on the same page
Success is impossible if partners wants different things. It is crucial that all understand what is to be achieved and work towards the same goals. Establishing clear key performance indicators can help measure performance and can alert members of potential issues that could arise.
Without trust, there’s nothing
Remaining open and honest is necessary to any relationship. Openly share information with other JV members, such as financial status and company goals/objectives. The more trust and reliability between the owners, the greater chance for a successful venture.
“Conflict is inevitable, combat is optional” - Max Lucado
Even the best relationships have problems. In all of life's situations, you can only control how you choose to respond (and not react) that will determine whether the outcomes of conflict are constructive or destructive. The initial JV agreement should include agreed upon methods for dispute resolution, should the companies remain unable to resolve a conflict.