Financial Privacy is a Benefit of Joint Ventures

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If you will need a loan or line of credit, of course, you will be revealing your financial information to bankers, the EDA, the SBA, etc. But if you are launching your second or seventh venture, privacy about the details of your first company can be maintained.

Recently, a few of our growth strategy clients have been reluctant to even consider joint ventures because they assumed they would have to divulge all of their financial information.  In one case, the client further assumed that any potential joint venture partner would try to take advantage of them because they have been growing and generate a nice profit. “If anything goes wrong or money is needed, won’t they just conclude that WE would be the partner to step up?”

Over the years, I have become a fan of joint ventures over other arrangements in part because the focus remains on the future and on the specific venture.  Each participant agrees to invest. The investment in the joint venture can take many forms. Time. Money. Products. Services. Tangible assets. Influence or access. Distribution of proceeds, profit, or debt mirror the value of each participant’s investment.

I am in the process of launching my eighth enterprise at the moment.  It is different from previous launches in that it is an economic development initiative. If/when we get it off the ground, it would be one of New Jersey’s first public benefit corporations. Two companies have invested $50,000 each and we are asking the other participants to now step up.  Whether either of the first two companies is rolling in money or dead broke isn’t relevant. Companies that want to benefit from working together invest in proportion to what they want to see in return.  I have worked with over 50 corporate sponsors over the years, and have concluded that the same concept applies for them.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieve accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search.  2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com. 

About Aldonna Ambler:
Known as The Growth Strategist®, Aldonna Ambler built and grew a suite of companies to help midsized B2B companies achieve accelerated growth with sustained profitability® A Certified Speaking Professional (CSP), Ambler has addressed over 2000 audiences and hosted a syndicated online talk show about growth strategies for 9 years. As a growth financing intermediary, Ambler raised over $1 Bil dollars for midsized companies. The winner of over 2 dozen prestigious national and statewide "entrepreneur of the year" awards, Ambler is available to speak about “profitable growth during any economy” and/or serve on the board of a growth-oriented privately-held company.

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