As a business owner in Georgia, you may have entered into a joint business venture with one or more other parties at some point. This is a popular way to split the profit and risk of a large project. However, sometimes there are hidden risks and unforeseen issues in these ventures that may take you by surprise. You should therefore know when to employ an exit strategy.
Investopedia states that there are many things that can make an exit strategy for a joint business venture necessary. One of the most common issues is a divergence in interest. As you and your partners continue toward the end goal of your project, many things may occur. For example, the needs or consumer bases of a company might change while things are in progress. This might make it less profitable for one or more party to continue.
Other changes can include internal divisions within a partner company, changes in the products they produce, or shifts within the company’s team. If a company’s overall goal will no longer be met by following a venture plan, they might become difficult to work with. Likewise, new management may not mesh with you or the other team members and can cause friction.
If you can sense diverging interests causing a gap between you and your partners to the point that the environment seems hostile or negative, you should consider an exit strategy. If one has not already been made, you may wish to seek guidance regarding how to proceed.
