Hamish Bichan of Active Business Partnerships advised us on the original structure for the joint venture, and these are some of the pointers he and his business demonstrated to us.
Phone: 07977 505583
What Characteristics Make A Good Joint Venture Partner ?
Finding potential collaborative partners can be difficult however the following characteristics are helpful when looking to join forces:
4. Fair and reasonable
5. Likeminded personalities
6. Shared vision
What Makes a Successful Collaborative Joint Venture ?
Once compatible partners have been identified putting together a fair and workable agreement is vital to creating a thriving business relationship.
The following list of features and benefits are the key issues which need to be addressed and incorporated in a collaborative joint venture.
1. Flexible and fair agreements
2. Fair reward from own business and joint venture
3. Dedicated specialist farm management
4. Economies of scale
5. Skilled staff
6. Up to date specialist machinery justified on workload throughput
7. Buying power and marketing strength
8. Efficient administration and financial monitoring
9. Formal board & management meeting structure
10. Working together as a team with a common goal.
“Successful joint ventures rely on compatible individuals looking for ways to make the arrangement work rather than looking for reasons why it will fail”
1.1.1. Characteristics of successful joint ventures
· Shared vision & common goals
· Benefits of economies of scale and latest technology
· Tried & tested fair legal agreements
· Individual roles
· Diversity of directors skills
· Team players
· Formal board structure
1.1.2. Any of these potential targets in your locality ?
· Retiring farmers looking to take a step back
· Existing farmers who have developed other interests/enterprises
· Farms with machinery changes
· Farms with staff changes
· Estates looking for management
1.1.3. Factors which will accelerate concept
· Sustained pressures on farm economics
· Decoupled environment
· The collective financial impact is substantial
· Appropriate solutions need to be identified which will be specific to each farm and farmer.
· Working together is one effective way of reducing costs and developing a sustainable business.
· There is an increasing will to co-operate.
· Need for compatible partners with shared vision and common goals.
· Tried and tested workable joint venture agreements are a key element to successful collaboration.
· Key aims & factors for success
· Potential ‘partners’
· Cost / benefit
· Advantages disadvantages
· If / how pursue