According to Michael Kane Boral, a joint venture occurs when several companies combine their resources and skills to meet specific goals. Here are the critical issues to consider to make the joint venture a success.
1. A joint venture needs careful planning.
Michael Kane Boral says that it’s essential to start with thoughtful planning because you’re entering into a partnership with a different business. You should consider your business strategy to see if a joint venture is the right business model for your objectives.
Applying a SWOT analysis of your business and your potential pattern may help, suggests Michael Kane Boral.
2. Communication is crucial in a joint venture.
As Michael Kane Boral notes, everyone involved in the new partnership should be clear about what they’re getting themselves into. Because of this, talking about your joint venture goals, human resources, financial contributions, the agreement itself, etc., must be the top priority.
You may hold face-to-face meetings to iron out any issues, for example.
3. A joint venture needs to build trust.
Openness is one ingredient for success in a joint venture, says Michael Kane Boral. Partners should share information, including financials, to erase any suspicion.
Michael Kane Boral adds that building trust leads to a workable relationship.
4. Monitor the performance of your joint venture.
Every partner should be clear about the joint venture’s goals to ensure they pull together, explains Michael Kane Boral. When you’re starting, set clear indicators for measuring performance. These benchmarks will also help determine if your joint venture is on track or not.
5. It helps to be flexible.
Michael Kane Boral explains that two or more companies working together may become challenging as projects increase. As a result, each individual should be flexible in their relationships with others. Also, take time to review your processes, goals, etc., to see if there are things you should improve.
6. Find a way to deal with problems in the joint venture.
Although you may have the best joint venture agreement, problems are likely to arise. Michael Kane Boral advises it would help to look at any disagreement as an opportunity to improve the joint venture. You should always aim at a ‘win-win’ approach to solving sticky issues.
In addition, partners should have an agreed way for dispute resolution.
Michael Kane Boral is an executive with over 47 years of experience running multiple global building products and material businesses. Michael Kane Boral has steered startup companies to success, including cement, polymer, roofing, gypsum, asphalt, insulation, sidings, and more.
Michael Kane Boral‘s leadership in manufacturing and sales teams has spread to the whole of North America, Europe, the Middle East, Latin America, Australia, and Asia/Pacific.
Currently, Michael Kane Boral is in retirement.