Collaboration and Joint Venturing

Joint Ventures and Collaboration 

By Michael Ruiz

The term joint venture refers to the coming together of a number of industrial factors with the intent of carrying out a seemingly larger project. A good example of a joint venture would be to collaborate in a large construction contract. Joint ventures come with a number of characteristics.

The very first and foremost feature of a joint venture is the time frame. Joint ventures are directed towards a specific project and in most cases are limited to certain duration of time. As a form of illustration, the government may advertise a contract whereby they may require the construction of a given modern road or railway. One company or several of them may realise that if given the job to carry out alone, it may be too heavy for them. As such therefore, they may seek fellow contractors in the same field to join hands and take over the contract together. Of course the coming together of the two or several contractors does not make them permanent business partners. The purpose of working together is simply to perform the contract at hand and then part ways, unless they join hands again and carry out another contract together. Otherwise, from the legal point of view, the joint venture comes to an end as the contract comes to an end too.

http://onforb.es/1fCxWXw

The other characteristic of a joint venture is the ability of both or several parties carrying out all administrative functions of the collaboration together. Of course before taking up the contract, the contractors involved will normally have a contractual agreement where they will outline the legalities involved in their activities. The procedure that would be taken has to be agreed upon in order to avoid any future disagreements. Without this the performance of the contract may be hampered by daily disagreements where one party may complain that they are either left out on major jobs or that they are being given a bigger workload as compared to the other. Many at times will resort to sharing responsibilities.

In some situations, a joint venture may have to be organised in the form of a private limited company. In this case, the contractors that will have come together will be recognised as shareholders. The amount or shareholding will vary depending on each company’s financial contribution to the venture. In some situations the shareholding will be exactly the same whereby the rights and responsibilities will be shared equally. In some cases, the participants may take the direction of a public limited company whereby the shareholders will still pool their efforts together for the sake of the limited-time venture.

---

The other more informal approach that may be taken by a joint venture as collaboration is the partnership. Some may choose to register the venture as such while others may simply take the approach but not really register it. Some legal jurisdictions will compel joint ventures to be registered however short the period of the venture may be. Of course this is for legal purposes in case of any future disagreements and for purposes of taxation. If registered as a partnership, the legal rules governing a partnership will come into play. The rights and obligations will be followed as set out in the partnership agreement.

---

http://bit.ly/1d5RqbR

Another characteristic of a joint venture that cannot be overlooked is the management. It may be necessary in some cases for the venture to appoint a management body that will cater for the management of the venture. The management body will definitely have to represent the participants involved. Management personnel may be brought in from all sides in a certain percentage. Some ventures will find it necessary to appoint an independent management body that is not composed of any of their employees. Of course they have to agree on which one to go for since they will have to pay for the body’s services.

Establishing a joint venture with a participant from a foreign platform has always had some advantages. It helps the local one to gain an international market and increase the prospects of getting newer and more customers. The strategy here is the business network creation.

Have you thought about collaborating or forming a JV (joint venture)?
Care to share your experience and/or expertise?

Click below to attend our "Marketing for SMBs" event: 31st March 2015 EVENT

Why I do what I do

By my good friend Brad Horwath 

In the decade since I last had a full-time role I’ve often been asked what I do. It used to be an easy answer – freelance journalist. Over time however the list of services I find myself providing has blossomed – author, speaker, facilitator, host, communications trainer, analyst, writer, consultant, etc – to the point where I pretty much have no idea how to succinctly explain  what I do. It is on the whole probably a good problem to have.

But it is worth thinking about the question itself. ‘What do you do’ is a question that provides an easy way to define us, but it doesn’t really do many people justice now, especially when many of us are doing more than one thing. Describing what you do gives only the slightest inkling of what it is you can do – and in a world where increasingly I feel that we are making it up as we go along (I’ll explain what I mean by that in another post soon), skills and potential count for a lot.

Partly as a result of a project that I am working on now (and yes, that will be the subject of yet another blog post) I started to realise that there is a far more interesting question waiting to be answered – ‘why do you do what you do?’. I’ve tried it a few times and the answers have been surprising.

So here is my answer – ‘why I do what I do’.

Firstly – the heart of my motivation. I have a strong belief that the Australian economy is poised for an unhealthy future. Too much focus on (based on previous success) in mining has left us lagging in other sectors – especially in information-based industries. We are vulnerable to encroachment from foreign competitors – both online and off – and too few of our traditional successful domestic companies have parlayed that success on to the international stage. Our boards lack courage and vision – and are too hampered by the need to return shareholder value in the short term to take the steps they need to if they are to ensure their long term future.

The answer? In short, I believe we need to make more ‘things’ (including intellectual property) that people in other parts of the world need (or at least are willing to buy), lest we fall behind emerging nations and find ourselves with a declining standard of living.

It is a sentiment that is echoed in numerous reports, including Accenture’s report For Richer, For Poorer, released last year, which found: if the government in Australia does not respond with urgency and decisiveness to address the fundamental challenges in its labour market, the country will see declining levels of productivity growth rates and overall shrinkage of the workforce. That, in turn, will result in a decline in the living standards in Australia.

More starkly,  earlier this year PwC released its World in 2050 report which suggested Australia would slip from 19th place in 2014 to 28th in 2050, behind Bangladesh and Iran. Go Team Australia …

There is no end of reports that suggest similar futures. There is also no surplus of ideas of how to turn our progress around.

So back to the question – why do I do what I do.

For starters, I am a passionate believer that for a country to succeed then it needs everyone – EVERYONE – working together to achieve growth (in whatever metric you consider important). Perhaps it is the bias that comes from more than two decades researching the impact of internet/digital technologies on Australian business and society, but my own conclusion is that a more digitally-capable Australian society is a key ingredient in our long term competitiveness. That means raising the digital skills of EVERYONE.

Hence I am working with groups such as the Broadband for the Bush Alliance, which seeks to improve access to and utilisation of digital services in remote and regional Australia (please join us in Darwin in July for the next annual Forum, for which I am an ambassador). I am also lending some effort to the Australian Smart Communities Association, which will be holding its inaugural convention in 2016, and aims to showcase the work to improve digital services in communities around Australia.

I’ve also spent much of the last few years speaking at events in locations ranging from Longreach to Mount Gambier, helping to raise digital awareness and skills. This work will continue to be a focus for me, and it is my hope that in future situations I might be able to do more than just raise awareness. Have a look at Infoxchange’s Go Digi program as an example of a program that I fully support and will be looking to promote further.

But it is not enough just to be smart users of technology – we have to be smart creators too. That means more start-ups. Start-ups do amazing things. They create new markets, and improve old ones. The show how inefficiencies can be stripped out. They incubate new processes and new ways of running businesses (cloud computing, agile development and dev ops, etc), the socialise new working models (flexible working, remote working), and so on. And occasionally they go on to become multi-billion dollar employers in their own right. These companies quickly outgrow their domestic market, and we need to be generating a lot more of them if we are to have a healthy future.

Many of these companies are founded purely off the cleverness of the people at their core (not off a mineral resource) and no country has exclusivity in smart people. Hence the more we can do to bring people into digital careers and support start-ups and entrepreneurs, the better. This will be the focus for another project in 2015 (and yes, another blog post).

I also am convinced that having smart users and smart creators in the same environment benefits both groups – one can learn from the other – and hence both are needed for long-term sustainable success.

This also leads me to believe that if Australia is to have a successful future in digital technologies than we can’t afford to leave half of our potential talent out of the game. Australia already suffers from too few high school students choosing careers as digital creators (hence my support of initiatives such as Digital Careers). The need to get more women into the IT industry is critical.

A lot this work is realised through writing and speaking, and the occasional direct engagement. Its what I refer to as ‘working from the edge inwards’ – and is based on what I saw in Africa a decade ago, where you can do a lot more for a village with $1000 and a few shovels – more seemingly than you can do with a million dollar aid budget. Making the digging of clean wells work at scale however is a difficult exercise.

I’ve also done the odd spot of work with larger organisations, helping to seed and stimulate ideas of what the future holds and how they might not just adapt to it, but anticipate and profit from it. I am constantly seeking an answer to the question of whether large organisations can innovate at the pace required to compete with digital upstarts or changing customer preferences – and if so, whether the formula can be distilled and administered  elsewhere. The jury is still out on that one, with the exception of a handful of examples.

But ultimately – why do I do what I do? Because I have two little girls whom I want to see grow up leading the best possible life that can be provided for them, with options in what they choose to ‘do’. If I can contribute to a better future and pull other people with similar goals together to work towards that future, then I know I will have done all that I can.

A lot of my thinking still needs fleshing out, but this is a start.

Hence when it all gets stripped down to the things that I earn money from, I am more likely to accept those commissions that see me building towards the goals listed above. If it is a task through which I can help individuals become more aware and capable regarding the tools that are available to them, then I am more likely to be interested. If I can contribute to the success of Australia’s entrepreneurial community, then I am more likely to be interested. If I can help larger businesses successfully transform and ensure their long term survival, then I am interested. Even if I am only the smallest part of the process.

Fingers crossed, maybe writing it all down might help me realise some of my whys 

Come to the Edge

It’s time to find out HOW you can grow your business and best of all— how you can do it with the government’s money.

If your business is producing an amazing product, service or idea that has the potential for significant growth— you need to listen up.

There’s absolutely no reason for you to have to re-invent the wheel.

There are business coaches and mentors out there who have tried everything under the sun and have helped businesses —just like yours— to increase their revenue by tens of thousands, even millions of dollars.

But how do you find the right fit for you? And what else can you get other than extra dollars in your pocket?

Mastermind and coaching groups can help lead you to your ultimate success and goals by increasing and improving your skill levels, knowledge and understanding— this is why you must join us at The Edge event.

At The Edge you’ll find out exactly how the government can help fund your education to help you rapidly grow and squash the competition.

The Edge

We're holding a 3-hour event for a select few, just 20 business owners and leaders like yourself, where 10X CEO Terry Kew will be presenting The Edge.

Terry Kew’s experience in helping business’ grow is unparalleled— his career spans Australia, New Zealand, Europe, Asia, Canada and the USA—working with small and large businesses alike, from a small NFP magazine publication to Global Operations and Sales Director of Fitness First. He’s the real deal and has used his skills to assist businesses to grow their revenue in excess of $1.2B.

Expect jam-packed solid business information that will help you grow your business and your brand. We will explore strategies for increasing revenue, sales and profits while looking at the government programmes that are available for you to take advantage of.

If you believe you have what it takes to get your business to the next level, and need the support and systems to help you grow, you need to come to The Edge!

Normally this event is valued at $495, however thanks to our sponsor, the Unstoppables, it’s completely FREE. 

Register below for The Edge: Business Growth Strategies and How to Have the Government Fund your Business

Melbourne – Wednesday 22 October 5:30pm – 9pm – The Como Hotel

Brisbane – Wednesday 5 November 5:30pm – 9pm – Four Points by Sheraton

Sydney – Wednesday 26 November 5:30pm – 9pm – The Referron Network Room (SOLD OUT)

Sydney – Wednesday 3 December 5:30pm – 9pm – The Referron Network Room 

Where to after The Edge event?

There’s no doubt you will leave the Edge with a workbook full of ideas and strategies on how to grow your business.

The Process

At The Edge event you will leave with great information that you can implement straight away. For those who are interested in a learning more through a Discovery Consultation, we will spend 90-minutes one-on-one with you exploring where you are now and exactly where you want to be. We’ll also dig deeper into which government grant may be applicable for you and your business—this is 100% on us and we promise it will be invaluable to your business.

If we believe we can help you and you believe that we’re a good fit for you and your business—we will sit down and help you with your application for a government grant such as the Victorian Innovation Voucher.

We take the time to do this to make sure you demonstrate exactly how these programmes will make a significant difference to your business.

Innovation Mastermind Group, Coaching Club and Diploma of Business

Once you are qualified, you will register for the next intake of our government funded “Innovation Mastermind Group” whereby you will go through a structured 6-week programme that will address your core needs— and will be a feeder to our 10X Coaching Club and our 12 month Accredited Diploma of Business.

This programme is not for the faint hearted and is focused on entrepreneurs and business owners who are committed to growth and action.

We want to make a serious difference in your company and we’re prepared to invest our time, resources and energy into supporting 10 innovative companies.

To be part of this amazing experience all you need to do is register for The Edge event. We’ll be right there teaching you how you can grow your business and how we can help you fund this growth with the assistance of government programmes.

About 10X

10X is the next generation of business improvement —a proven way for business owners to significantly enhance their business performance within a coaching club environment. 10X Business Coaching is unlike the typical business coaching model where a coach comes into the business and works one-on-one with the business owner, oftentimes with mixed results.With 10X, our business coach works with a small group of business owners who come together as a business coaching club to achieve outstanding results.

About Unstoppables

Unstoppables is an entrepreneurial movement designed to create unique yearly business and travel adventures tailored to sharpen business leaders and Entrepreneurs. The group’s next stop is a 10 day voyage to Antarctica.

10X is looking for successful BDM's in Australia and New Zealand

Spark’s major alliance partner, 10X Squared, has a business opportunity for a strong Business Development Manager to earn a potential of $200k plus.

It calls for someone who is:

- a highly skilled sales person (preferably B2B)

- keen to drive results for themselves 

- keen to make a difference to countless business owners

Though you will be operating independently, you’ll be part of a great team who will provide you with world-class IP, training and a network of like-minded professionals.

We have 60 leading accounting and financial planning firms and their alliance partners, looking for the right professional to cross sell their services to each others clients and prospect databases ... ie dealing with warm leads! 

If you are or you know anyone who is:

- a self starter
- has at least 2 years experience, with a proven track record
- likes working towards kpi’s targets and achieving goals

And would be interested in finding out more, 10X wants to speak to you now - send your CV/profile to ikaye@bsi.com.au or register your interest on www.10xconsultant.com.au

Business Coaching

What’s the Opportunity?

10X has a network of some 60 proactive Accounting Firms and Financial Planners all over Australia and New Zealand (and continuously being added to!) They all come with their own solid client and prospect bases, with each firm keen to expand their Coaching and Training services and that’s where you come in.