A guide to creating a joint venture consortium |
Deciding on the area to coverDeciding the area that you wish the consortium you want to develop to cover, may be a simple decision for you in that you have spotted an opportunity or a business style used outside the consortiums in development and like to develop that concept. It might also be that you have specific industry experience that means that you have experience or knowledge that will allow you to formulate a joint venture consortium that will work well. The area that you select, and the method you see of operating within it, should make maximum use of the senior partners you propose, and this may limit the business areas available to you, in that you cannot simply choose a business type that requires a couple of people and decide it would be better with a larger number of partners, it has to be expandable quickly to the point where they will all have something to do, and where roles can be divided so that each has a fulfilling task to take on. Multi branch formulas have to take into account the considerable extra costs involved in each branch and that the formula has to show a way either where the cash to fund this comes in as a part of the fees or how it is to develop to cover these. Each joint venture consortium should be able to stand on its own, it may be that people can undertake roles from home or that most of the activity is internet based, however anything that the consortium will need to provide that is not funded by the initial setup will need to be shown , with an explanation as to how it is to be provided, or the project will not be viable and fail to get approved. This however does not mean that you have to show how stationary or expenses are recovered and can assume that partners will have access to transport, computers and other everyday business tools. As you discover one leap forward, you will discover another problem area, is it a fair business, does it offer your clients a good deal, all have to be positive to gain approval. Lateral thinking is often the key, for example an individual online shop may not provide sufficient opportunity for a consortium but a group of related online shops may do, and it may be that a model could be created for a shopping style that could be replicated or in some other way expanded to cover these, with in effect shared development costs. In other cases it may be a problem or need that you see and some lateral thought may allow you to see a way a consortium could provide a solution, and a little more thought and research could develop this into the seed of an idea that you could develop further.
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