5 Keys to Raising Joint Venture Equity

In the business world, although you have a powerful functioning part to play in your success, raising capital with a strong partnership will open up more opportunities than you can achieve on your own. When you lack the capital you need and the market knowledge to obtain it, joint venture equity is always your plausible solution. Although this isn’t the easiest partnership to reach, the following five keys will help you unlock your best path to raising joint venture equity:

  • KEY 1: Show and tell:
    Before you attempt to raise capital, you need to have your house in order. You need to be able to show that you have your ducks in a row, and the way to do this is to have a detailed business plan. Your business plan should include your plans for the capital you are trying to raise.
  • KEY 2: Know thyself:
    Besides having an amazingly accurate and detailed business plan, you need to be able to speak with authority and confidence about every portion of your business and how you plan on growing it with the equity you are raising. You have to be the expert, development team, and marketing guru. You must be able to attract a great funder with the merits of your proposal, so you have to be ready first. 
  • KEY 3: The right one is out there:
    You know the type of arrangement you are looking for. The next step is to figure out who might be interested in what you are offering. All sources of capital funds are not made equal, so you need to find out which one works best for you and the joint venture. 
  • KEY 4: More is more.
    Like everything else, raising joint venture equity is a numbers game. There are indeed plenty of fish in the sea, and you want to make sure the right fish sees your lore. The more people you ask, or lines you throw, the greater the likelihood that someone will bite. 
  • KEY 5: Flexibility is key.
    Having an “all or nothing” mentality is not the way to succeed. You have to be prepared to accept a deal that may not be exactly what you asked for. Know that all the funding might not come exactly when you want it, and that’s okay. Continue to nurture the relationship, and good things are certain to grow from it. Again, raising joint venture equity is not easy. However, if you apply the five keys discussed here, you’ll be well along the way to attaining the capital necessary to play big in your industry.

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