Cleric Legal Services Ltd
Joint ventures offer businesses a flexible way to grow and collaborate, but a clear agreement is key to ensuring success and protecting everyone's interests.
Define the Purpose Clearly
Agree at the outset what the joint venture is aiming to achieve. Be specific about goals, success measures, and timelines to ensure all parties share the same vision.
Document Contributions and Responsibilities
Set out exactly what each party is bringing to the table — whether it's funding, expertise, or equipment. A written record builds transparency and reduces the risk of disputes later.
Establish Decision-Making Processes
Clarify how every day and major decisions will be made. Will decisions be made jointly or will one party take the lead? Also plan for how disagreements will be resolved.
Clarify Profit and Loss Distribution
Make sure both parties are clear on how profits and losses will be divided — whether it’s an equal split or based on each party’s investment. A clear agreement from the beginning avoids confusion and disputes down the line.
Protect Confidential Information
If you'll be sharing sensitive data, include confidentiality provisions in your agreement. Consider restrictions to prevent either party from setting up a competing venture during or shortly after the collaboration.
Plan for the Unexpected
Agree from the start how the joint venture can be ended if circumstances change. Having an exit strategy in place helps prevent disruption and protects relationships.
Final Thought:
With careful planning and a solid agreement, joint ventures provide a low-risk way for businesses to collaborate and achieve greater success together.
Feel free to get in touch for a no-obligation chat to ensure your partnership is set up for success. Look forward to hearing from you.
Richard Jenkins, Claric Legal Services 024 7698 0613 or [email protected]
