• Home
  • Blog & News
  • How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures
How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

Collaboration is a key element for building your business into a successful Asset of Value. But, not every joint venture works out the way your business needs it to. Spotting, and dealing with, nightmare partnerships before they ruin your business is vital. When you find a partnership that works well, hang on to it tightly.  On The Money Show with Bruce Whitfield, Pavlo Phitidis outlined what could go wrong in your joint venture, and what to watch out for:

Theft and lies

Many joint ventures are, unfortunately, often cased in a web of deceit and lies. Dishonest collaborators, with nefarious intent, seek to take over your business, rob you of your market share, or steal intellectual property from it. Larger companies often acquire smaller businesses, attaching seemingly big benefits to the deal for the smaller business. A small business looks forward to increasing its distribution network, or improving its global profile but, behind the scenes, the larger business is actively looking towards eliminating the potential threat its potential collaborator presents. This type of deceitful action often plays out in the due diligence phase of a potential acquisition, with the larger company pulling out of the deal once they’ve discovered the trade secrets or inside scoop on the smaller business.

The pressures of time and money

A collaborator who puts undue pressure on you to get started on work, before an agreement is signed, is a big red flag. A true collaborator will insist upon a robust, signed agreement before work begins, to protect their business and yours. Protect your business from this type of deceitful activity by thoroughly researching your potential collaborator, and ensuring your joint venture contract is signed before work begins. Don’t compromise and live in hope that it’ll all work out. Going in “on good faith” may lead to you losing your faith entirely, and possibly your business too.

Unfair deals

On face value, it looks like a great deal, that seems to favour your business. But, as time passes and the project evolves, it becomes apparent that this joint venture isn’t to your benefit. An unfair deal will uncover deceitful action by your collaborator, and wound the relationship with distrust. Once distrust appears between you and your collaborator, your partnership is dead in the water. Unfair deals do not create sustainable, long-term, and mutually beneficial relationships.

Coopetition

Coopetition looks, on the surface, much like cooperation between competing companies. Competing businesses that cooperate are often forced into this position due to legislative requirements, supply chain requirements, or infrastructure needs. But coopetition is, most often, a fantasy that never translates into functional reality. Forced coopetition relationships mostly lead to business and reputational damage.

Misrepresented or misinterpreted expertise, capabilities & commitments

Thoroughly researching your potential partner can help to safeguard against a mismatch in expertise, capabilities, and commitments. Joint ventures often present themselves as 50/50 deals, but don’t reflect this in execution. As the project rolls out, you soon realise your partner isn’t capable of delivering on their commitment. They may be distracted by other commitments or unable to fulfil their side of the deal. You’re left compensating for your partner’s failures, to ensure your customers don’t get let down. Should this happen, look at reshaping your contract, and specifically your business’ reward for being part of this joint venture. A good partner, who is committed to seeing the deal through, will work with you to ensure that this relationship doesn’t go sour.

You might be your own worst nightmare

Your personal circumstances, age, success level, and other variables can directly impact the success or failure of your joint venture. It’s so easy to get sucked in by big promises, especially when you’re feeling desperate. Try to remain objective, but where you think you need guidance in staying on track, ask for it. Consult with a trusted peer or colleague to get a different perspective on a potential deal.

Safeguard your business’ success, by avoiding the big red flags that wave when you go into a new joint venture. At Aurik, we help you design and implement effective partnerships that help you build your business into an Asset of Value.

Tags: The Money Show

Start with the end in mind

Start with the end in mind

Plans don’t always work out – that’s life. Starting a business is no different, especially when you need to work closely...

Read more

Negotiating the family business deal

Negotiating the family business deal

76% of family businesses don't survive through a second generation. It's a scary statistic and one that affects many private...

Read more

Building a pricing strategy to grow your business

Building a pricing strategy to grow your business

“The pricing game is emotional”… this is how a tweet from a listener began, and he’s right. A challenge to your pricing feels...

Read more

NEXT-LEVEL GROWTH: WHAT IT IS & HOW TO GET IT RIGHT

NEXT-LEVEL GROWTH: WHAT IT IS & HOW TO GET IT RIGHT

How often have you heard the terms "Next-level growth" or "Getting to the next level" bandied about? It's become more business...

Read more

Our past determines our approach to the SA economy

Our past determines our approach to the SA economy

Carl Jung said “We are trapped by the images of our past”. Meaning that our past experiences affect our perception of reality....

Read more

White Knights, Silver Bullets & False Prophets

White Knights, Silver Bullets & False Prophets

The exhaustion of running a business can make us vulnerable to the allure of a cure-all solution. But if it sounds too good...

Read more

Help Pavlo to #NameTheBook
namethebook

Help Pavlo to #NameTheBook

Pavlo Phitidis has just completed a book about the ideas, thoughts and more valuably, his direct experience in building successful...

Read more

How to build a retail empire very, very slowly

How to build a retail empire very, very slowly

Retail is notoriously difficult, but if you have a great product targeting consumers - you need to get it right. Pavlo Phitidis...

Read more

Immigrating talent for a quick but enduring economic boom

Immigrating talent for a quick but enduring economic boom

If we can attract 100 000 STEM qualified immigrants, we can not only bridge the skills gap that is stagnating our growth,...

Read more

EMIGRATION: Its cost and opportunity to a business owner
Business Growth

EMIGRATION: Its cost and opportunity to a business owner

Over the last month, I have had two same, but different meetings with two different business owners. They were the same because...

Read more

Creating opportunities that didn’t exist before
Growing business value Business Growth

Creating opportunities that didn’t exist before

Creating economy is a key entrepreneurial skill. Its something that is entirely possible irrespective of the environment...

Read more

Why waiting to act becomes the only act and how to ‘snap’ the bad habit
Asset of Value

Why waiting to act becomes the only act and how to ‘snap’ the bad habit

With the South African elections now come and gone, it feels like we have passed a milestone that we were all holding our...

Read more

Winning mindsets turning thought into action and action into results
Building your Business Business Growth

Winning mindsets turning thought into action and action into results

The distinguishing feature between business owners who crack it and those who drift along, and fail… is mindset.

Read more

How to structure the offer of a Management Buy Out
Business Succession Succession planning

How to structure the offer of a Management Buy Out

A hardworking, smart professional presented me with a scenario on an offer she had received to conclude a management buy-out. She...

Read more

Position your business for success and maximum impact
Positioning your Business Business Growth

Position your business for success and maximum impact

Wing Chun Kung Fu, a style of martial arts, requires that you have a secure footing on the ground in all its defensive and...

Read more

Building a business is like sailing a ship
Asset of Value Building your Business

Building a business is like sailing a ship

Analogies are very useful to simplify thinking and action. As a #businessowner, building a #business in a challenging environment...

Read more

What’s your business worth?
Business Growth

What’s your business worth?

Firstly, this only matters for 5.4% of all #businessowners since 94.6% of all business started fail to sell. They close at...

Read more

Creating wealth through your business
Business Growth Wealth Creation

Creating wealth through your business

Wealth describes an abundance of a desirable thing. It could be friendship, love, money, access to a foodstuff and so on....

Read more

Developing an effective marketing strategy
Business Growth Marketing strategy

Developing an effective marketing strategy

If you can’t and don’t get potential customers to know that you exist, they don’t care and you die. They don’t care because...

Read more

Build resilience into your business to take control of your future
Business Growth Strategic Planning

Build resilience into your business to take control of your future

We often hear about being resilient to thrive and survive in business today. Why does this matter and what does it mean?

Read more

Escaping the project revenue trap and why you should do it
Building your Business

Escaping the project revenue trap and why you should do it

Recently, at an Asset of Value event in Johannesburg, South Africa, a room bristling with 58 business owners that collectively...

Read more

What is your business building approach to 2019: Chose one of 3 strategies
The Money Show Business Strategy

What is your business building approach to 2019: Chose one of 3 strategies

2018 has been an exhausting year. Taking time off is important, so long as you don’t break the momentum of your business....

Read more

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures
The Money Show

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

Collaboration is a key element for building your business into a successful Asset of Value. But, not every joint venture...

Read more

Why Collaboration is a Critical Skill for Every Business Owner
The Money Show Building your Business

Why Collaboration is a Critical Skill for Every Business Owner

We’ve entered the age of collaboration. Despite current events, like BREXIT, that showcase the opposite, collaboration remains...

Read more