Don’t Ink Till You Know
Fashion Mingle today contrasted the difference between establishing a partnership when forming a business, and creating a joint venture on a product you and the other party are emphasizing, it’s the “Fashion Business Survival Guide: Is Partnership or Joint Venture Right For Your Business?”.
A partnership is most commonly when 2 or more entrepreneurs create a new company, a business where everybody understands what each of their role is in order to ensure success something such as a fashion brand, but those waters quickly get murky if there’s conflict between creativity, promotion, and financing.
Establishing a partnership before the ink is dry can quickly go south, you may feel offended that you’re asked to sign a contract on key aspects that are expected, or even be required to sign an N.D.A. (Non Disclosure Agreement) about what’s expected during the success of the company, but it’s very important to discuss the end of the company before you make the company official so there’s no surprises, hard-feelings, or tremendous legal battles if and when the book on your company ends.
A joint venture are 2 brands whether their humans or businesses continue together to collaborate on a new product, without infringing on one another’s brand as a whole, it is only for this joint venture that the 2 established businesses come together to create and promote something such as an athletic shoe, but it must be laid out in exact legal writing what’s expected of each side of the joint venture, every detail must be noted on contract and NDA, going as far as the software used to create an artistic image, this also helps with partnerships.
Even if you’ve never had an NDA or a formal partnership or joint venture in a friendship where 2 parties supported a project whether through creativity or money, and if the friendship did go sour, you have the legal right to sue one for money you paid out through the years in spite of a mountain of hearsay in this situation, you just need to have proof of what’s been paid out.
A joint venture with a corporation will always benefit the corporation because they’re the ones who wrote it up, so it’s important to draw up what’s expected in the joint venture from the start on both ends.
And when both parties dissolve their partnership for whatever reason whether it being about the business, or personal matters that hindered the partnership, both parties will never win 100 percent when finally dissolved, only the lawyers win, they get paid whether they win or lose.