While there are many benefits to joint ventures there are a few occasions when these ventures might not be the best of circumstances for you. In order to to make your joint venture run as smoothly as possible and avoid some of the more serious consequences of bad joint ventures keep the advice below in mind when considering becoming a partner in any joint venture. If you do this, your odds of success will improve greatly.
1) Avoid joint ventures that lack clearly stated and well defined goals and objectives. If you can't quickly gauge by reading through a contract or proposal exactly what the project is about it's probably a good idea to pass. Not all opportunities are created equally and if the person approaching you to join in his or her joint venture isn't able to communicate the plan and/or purpose clearly to you in the proposal, chances are that he or she will not be able to effectively communicate other important information with you for the duration of the joint venture.
2) Don't jump in if the lack of planning is obvious. One thing that is difficult to make up for once you're midway into a joint venture is a distinct lack of planning that dates back to before the project began. Pay attention to the details and if they don't add up or something seems to be missing or incomplete, explore it and investigate. If the person approaching you to join in the joint venture hasn't done his or her homework well enough to explain it to you, how much other important information is missing in the creation of the product or the business plan? You do not want to associate your good name or the good name you are trying to create with a questionable product, deal, or relationship. Bow out gracefully before you find yourself in too deep.
3) Ineffective communication. This is a big deal that is nearly impossible to overcome. Whether the communication is too sporadic or unreliable to be effective or the person on the other side of this joint venture simply isn't making the point he or she is trying to make, communication is the key to the success and/or failure of a joint venture. It doesn't matter how great the product is or how wonderful the people involved in the partnership are. If you can't effectively communicate with one another there is no point in becoming involved in a joint business venture. It will only become a lesson in frustration that isn't good for either party or the businesses you are working to build.
When all is said and done, the benefits offered by joint ventures far outweigh the potential pitfalls on most days. As long as you trust your partners, have a well thought out and executed plan, and create a product that people need, want, and can afford to buy you should be sitting pretty once your joint venture is over with.
