Once you have decided that it is time to start exporting your products or services, one of the key factors for the success of the strategy you have planned is to have the right international business partner for your company.
By having the right international business partner, you can reduce risks and save money significantly. Dennis Kuzniatsou says that “Joint ventures enable companies to get fast access to new markets and distribution channels, reduce the production cost, acquire new skills and competences, obtain cutting-edge technologies, and develop new products and services”.
There are some important aspects that you should consider in this kind of partnership:
TRUST
Your potential partner must be someone (or represent a company) that inspires you trust. You could choose based on the reputation of this person or the company he/she represents. If you initially realize that you get inconsistent information, or the other party doesn’t have doubts or concerns perhaps is a sign that they are not taking the matter seriously and you should think twice before embarking on this process with them.
POSSIBILITY OF A TRIAL RUN
Ideally, your potential partner has the possibility to offer you a trial period for your business alliance (to see if it is convenient for both parties because the important thing is that it be a fruitful relationship for all involved)
VARIED STRENGTHS
Pamela Wasley recommends “Make sure you and your partner’s strengths are in different areas. If you have two people who are good at sales and no one who is good at executing on an operational level, it will be more challenging than you think. It is much better to bring someone in who will compliment your strengths. In order to grow profitably, keep some balance”.
GOALS COMPATIBILITY
Dennis Kuzniatsou states that “Goal compatibility provides to a joint venture a stable environment, reducing uncertainty and stimulating commitment of partner organizations. At the same time, goal correspondence does not necessarily mean that partners have the same goals. It means that partners’ objectives are not in conflict and are understood by each other”.
Infinitus can help you, since one of our main missions is to find the ideal business partners for your company in the new markets, in order to mitigate any risk. Contact us and together we can build your international market entry strategy!
SOURCES:
http://innodigest.com/how-to-choose-the-right-partner-for-international-joint-venture/
https://www.edc.ca/en/blog/expand-internationally-guide.html
https://www.entrepreneur.com/article/273813
https://smallbiztrends.com/2015/10/trust-a-business-partner-vendor.html