Issue Date: 
Monday, November 17, 2014

10 Strategies to apply for Joint Ventures Partners

By W van Rooyen

www.how2tender.com 

10 November 2014

Joint Ventures can be very lucrative business relationships. In previous articles about Joint Ventures we have talked about the eight things you must know about Joint Ventures as well as how Tenders and Joint Ventures work.

Today we concentrate on the ten strategies that any entrepreneur should apply when choosing Joint Ventures partners.

Here are the ten strategies you as business owner and potential Tender winner must concentrate on when choosing a Joint Venture Business Partner:

  1. Find a partner or partners that you can trust. Trust in any relationship is of the utmost importance and even more so in a business relationship.
  2. Put everything in writing and keep it simple. The more complicated the deal the more likely it is that something can go wrong.
  3. Look for the best partners. Do not go into a Joint Venture with your best friend just because it is your friend. Find the best partners that will contribute the best to the Joint Venture for the specific Tender that you are responding to.
  4. Ensure that all parties to the Joint Venture contribute equally. You do not want freeloaders in the Joint Venture.
  5. Limit the scope of the Joint Venture to a specific tender. Rather do a Joint Venture for each Tender that you respond to. This way you leave the door open to change partners if a tender require other skills as those of your current partner. You do not want to get stuck in an unhappy Joint Venture relationship.
  6. Determine the value that each partner will contribute to the Joint Venture beforehand and ensure that it is captured in the Joint Venture Agreement.
  7. Ensure that there is a well defined exit strategy in the Joint Venture Agreement should things between you and your Joint Venture partners do not work out.
  8. Choose Joint Venture partners that are financially sound. You do not want a situation where your partners suck the Joint Venture dry because their other or normal business ventures have failed.
  9. The partners that you choose must be able and willing to grow with you and the Joint Venture. There is no instant success in the tender world.
  10. Try and get Joint Venture partners with experience in the specific Tender environment that you are bidding for. The more experience you and your Joint Venture partners can muster the best change you have of winning a tender.

There you have it - ten strategies that if followed, could ensure that the Joint Venture that you use for that next tender can be the one that ensures success.

For more information on Joint Ventures or to get a Joint Venture Agreement please visit our website at www.how2tender.com. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

Until next time.

Title Closing Date Tender No.
Sound and Lighting: Live Gospel Show 24 November 2018 2018-11-21 12:00 B346/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 2 2018-11-27 12:00 213/2018/19
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 6 2018-11-27 11:00 RFQ214/2018/19
Supply and Install Air Conditioners at Tshepong Laboratory 2018-12-12 10:30 RFQ NO: 1464133
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 9 2018-11-27 12:00 215/2018/19
Renovations to Wf Knobel NHLS Laboratory in Limpopo 2018-12-13 11:00 RFQ NO: 1339393
Backfill and reinstatements of trenches & other excavations in existing roads and other paved surfaces in ward 10 2018-11-27 12:00 216/2018/19
Call for Auctioneers to submit quotations for providing service to auction redundant and obsolete inventory and movable assets on behalf of Knysna Municipality 2018-11-27 12:00 190/2018/19
Render a Cleaning Service at the Premises of the Metro North Education District (Mned) Office, Situated at 9 Timmerman Street, Parow for a period of two (2) years, starting from 1 April 2019 to 31 March 2021. 2018-12-14 11:00 B/WCED 2473/18
On-site Auditing, application of Grading System to and Training of 349 Clubs through Club Development Toolkit 2018-12-18 11:00 ZNB: DSR43/ 1819
Provision of Short Term Insurance Services in SIU for a period of 60 months. 2018-12-14 11:00 RFP: 005/ 11/ 2018
Appointment of a Service Provider to provide an Internal Audit Services on a co-sourced basis for a period of Three (3) years 2018-12-07 12:00 RFP/ T 08- 2018/ 19
Appointment of a maximum of four (4) Media Agents to provide media buying (including print, radio, television and online media) and related services to the NRF SAASTA for a period of thirty six (36) months 2018-12-14 11:00 NRF/ SAASTA/ 02/ 2018- 2019
Supply of Integrated Competency Assessment services to SITA for a period of 36 months 2018-12-07 11:00 RFB 1841/ 2018
Provision and Implementation of Integrated Management Information System to Support SASSETA Core Business 2018-11-30 11:00 RFP/ SASSETA/ 201819128
Installation, Configuration maintenance of PABX and Call Centre Management Solution for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819129
Supply, Delivery, Installation and Configuration of Firewall and Switches on an outright purchase or rental basis (Managed) and maintenance thereof for a period of 12 months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819130
Provision of Telecommunication and Internet Services for a period of 12 Months with the option to renew 2018-12-10 11:00 RFP/ SASSETA/ 201819125
Appointment of a service provider for the evaluation, due diligence and monitoring of Discretionary Grants until 31st March 2019 2018-12-10 10:00 RFP/ SASSETA/ 201819127/ 1
The rendering, manufacturing, repairing, fitting and supplying of aids for orthotic and prosthetic services to institutions in the Eden and Central Karoo District under Western Cape Government the Department of Health for a three year period 2018-12-07 11:00 WCGHCC031/ 1/ 2018

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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