What about tendering together with another business?
Working together we can do a Tender Joint Venture, isn’t?
This is called a joint venture (JV). When two businesses form a joint venture (a partnership between two business) they each contribute to the project and share the profit. In this way two (or more) small businesses may be able to win a large tender that neither would have been able to take on alone.
Use the following guidelines when selecting a tender joint venture (JV):
- Choose you partner very carefully. Like any partnership, a tender joint venture (JV) thrives on mutual trust and collapses when partners become suspicious of the others motives, agendas and ethics
- Enter into negotiations early
- Rather involve two or more smaller tender joint venture (JV) partners than one other firm that is much bigger than you are; and
- Draw up a formal tender joint venture (JV) agreement and state all expectations clearly, including usually vague notions such as the one partner empowering the other with skills.
This information is very useful advice to aspiring entrepreneurs. After completion of a successful JV project the partners are left independent but stronger than they were before. This is safer than diluting ownership of your enterprise while still vulnerable.
Hi Gregory,
I couldn’t have said it better than you 🙂 of note, many businesses fail because they lark ability to do business strategy, the best thing about human beings is that we are creative, so, whatever the weaknesses a business may have, a strategy can surely be found if we give ourselves time to think and we have business knowledge. Basically we must use partnerships to be strong. Everyone wins if partnership is devised correctly 🙂
Is the joint venture forever or is just for specific projects that you choose?
Hi Sethu
I hope this finds you well.
A joint venture is for a specific project, this is better strategy than selling your shares or ownership percentage to another person when all you need is their resources to combine them with yours and do a specific project, thereafter you may not be needing those Joint Venture partners as your business will be in stronger position by then. It is good business strategy than just selling your ownership, rule of thumb, explore Joint Venture strategy before selling your shares or ownership 😉