A guide to creating a joint venture consortium |
The partnership offerThe partnership offer needs to be brief, to the point, and explain what is included, commissioned and the structure of the consortium, together with details on its objectives. The number of senior partners and partners and costs structure, all needs to be made clear. If a website has been partly developed this may help to illustrate the business concepts, but should not be produced solely as a selling aid to promote partnerships, as this does not eventually add to its value. You should define the number of senior partners, and can optionally define the number of partners or this can be left to the senior partners to decide. The design of consortiums also allows for junior partners but normally their role and the number of them will be defined by the senior partners and get the approval of the partners they have at the time. You don't have to create a partnership agreement as such, as there is a standard one provided, but you do need to add a page that defines the specific items like its purpose, number of partners, entry costs etc, and any changes that exist to the standard agreement. Once established, you have it approved and it has been published you cannot change it, as this could be misleading to those who are seeking to become partners in it. You therefore need to make sure that you have fully worked out how everything that you say will be included can be, and any commissioning that you say you have in place, has been signed up. The partnership offer has to be simple, clear and straight forward, as people considering which consortium to join need to be able to understand what is included and be able to compare one with another. The offer does not include the large amount of detail that you will need to provide in one way or another to the consortium members once the consortium is formed, or to PCI for approval to be obtained. |
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