You need wisdom, prudence to avoid the 9 Joint Venture (JV) problems in Kenya and just like any business deal try to avoid any of the following Joint Venture (JV) Problems. Liberty has an extensive 10 Step Joint Venture Guide that may help avoid some of the problems listed below

1. Joint Venture (JV) Problems Caused by a Lack of Joint Venture Experience
Before jumping into your first Joint Venture, please research, understand what is your role and talk to a trusted advisor or friend with some Joint Venture experience. A small investment of time can save countless hours of agony, anxiety, and aggravation.

2. Thinking Your JV Partner is a Good Business Person
Let’s face it, do not assume and confuse personal and corporate. Don’t overtrust. Many people and companies do a terrible job of managing their finances. Proceed with caution in your business undertakings and make sure you have a Joint Venture contract.

3. Forgetting that you now have a partner
In our efforts to please our clients and produce a great project, it is easy to forget that we now have a partner. Make sure that you lay down ground rules as to each party’s decision-making authority and when consultation is needed between the partner.

<< Download 10 Step Liberty Joint Venture Guide >>

4. Failure to recognize there is no such thing as equal partners
In a Joint Venture, there are chances that one party will contribute and do a lot more than others. They will therefore not have the same share. As their contribution to the table is different. Your JV contract should address the level of effort and distribution of profits before you start the project.

5. Thinking your JV partner will look out for your interests
Refer to #7. They might not even be looking out for their own interests. You must be proactive in your JV relationship. If you are concerned about your own interests, it is up to you to take care of them.

6. Competing against your JV Partners on other projects
Most often a JV may bring together parties in the same space or industry. Although these parties may have an exclusive long-term arrangement in their area e.g. pursue educational or hospitality projects in Kenya. eventually, their collaboration could see them share or access competitive secrets, patents, or technology and in the process end up competing against each other. It is very important parties discuss and consider and deal with the implications of competition before it results in any Joint Venture (JV) Problems escalations.

7 Irregular Financial or Infomation Update
Usually, one partner will be put in charge of the JV finance and all parties will want to understand and have an accurate picture of Finances. It is important that the party in charge of finance provides regular and accurate periodic updates on the financial situation. The frequency of these updates should adapt to the current tempo and level of activity and could be hourly weekly, or even monthly. The financial statements may include invoice copies or bank statements. Any gaps in financial information could set the stage in Mistrust, Rumor, Doubt, and Acrimony

<< Download 10 Step Liberty Joint Venture Guide >>

8. No Joint Approval or Control of the Cash
I have seen many joint venture partners get involved in disputes among the partners around CASH. In many cases, it is the JV partner with the checkbook that usually wins. You can level the playing field by insisting on joint accounts with dual signatures and approvals by all parties when any payments are made.

When it comes to Joint Venture (JV) Problems financial disputes, the partner with the checkbook usually wins.— Herb Cannon

8. Your JV partner has a conflict of interest
Let’s assume that your partner has a long-standing relationship with the client. You were brought into this project because it was too large or they required your expertise and reputation. Once the JV has won the project, you may have served your purpose and your partner may be more interested in their relationship with the client than maintaining a JV relation with you. They may stop consultations or including you in the project decisions or the sharing of profit. Address your Joint Venture (JV) Problems and concerns early on.

9. You did not provide on how to end the Joint Venture (JOINT VENTURE EXIT)
A Joint Venture is like a marriage. A Joint Venture Agreements (JVA) is like a pre-nuptial agreement. It should spell out how each partner may enter, their role, how they will share profits, and/or how they may leave the joint venture. Joint Venture Exit should be negotiated at the beginning and when both parties still like each other and not when the rain starts hitting the JV