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Create a preliminary plan for an alliance. This plan should detail how the alliance will benefit both companies. Approach the key decision maker. Build a relationship with your contact first. Present your idea. Listen and adapt your proposal as necessary.

Proportional Consolidation Method of Joint Venture Accounting. Joint ventures are accounted for using equity accounting (same as associates), but also occasionally using proportional consolidation.The joint venture is brought into the group accounts on a proportionate line by line basis between sales and net income.

In a joint venture (JV), each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants' other business interests.

The structure of the joint venture, e.g. whether it will be a separate business in its own right. the objectives of the joint venture. the financial contributions you will each make. whether you will transfer any assets or employees to the joint venture.

While signing a Joint Venture agreement, the following clauses must be properly examined such as: Object and scope of the Joint Venture; Equity participation by local and foreign investors and agreement to a future issue of capital; Management Committee; Financial arrangements; The composition of the board and

Dear (Potential JV Partner), I'd like to discuss a joint venture proposition for you. Currently my company is promoting (PRODUCT) and I would like to propose a joint venture that will make a steady stream of revenue for both of us.

Market strategies are also a section in the joint venture business plan. The plan needs to define the market the goods and services will target. This section may contain detailed analysis, graphs, and other information that define the market and show why the joint venture will be a success.

There's no right or wrong way to split partnership profits, only what works for your business. You can decide to pay each partner a base salary and then split any remaining profits equally, or assign a percentage based on the time and resources each person contributes to the company.

Know your partner. This is obvious. Know your partner's national culture. Decide on the respective roles in detail at the start. Discuss contingencies before the agreement is signed. Create a detailed joint venture agreement. Clear performance indicators. Establish an open dialogue. Keep good records.

Joint Venture Checklist

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