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How Do I Write a Joint Venture Business Plan?

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  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 29 September 2016
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A joint venture business plan is a document that describes a business merger of two or more companies. The plan typically has several sections and outlines the purpose, companies, and responsibilities of each company for the purpose of the joint venture. In most cases, it describes temporary activities that achieve specific goals. Though each company in the venture can write the business plan, a legal review is often necessary to ensure the plan is legitimate. These plans are typically above and beyond a standard business plan.

Companies should include an executive summary as part of their joint venture business plan. This section typically starts the plan and provides a brief yet informative snapshot of the agreement. Depending on the joint venture activities, the summary can be anywhere from a few paragraphs to a few pages. The executive summary should provide enough information to inform stakeholders on the activities and also create a desire in stakeholders to read more of the document. Though it appears first, companies should write this section last overall.

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The next section or sections should provide a brief description of each company involved in the joint venture. Companies should describe their management teams, resources, or goods available and any other details pertinent to the joint venture business plan. Essentially, a profile is necessary to describe the partners in the agreement. It is crucial for each company to demonstrate their expertise and reason for inclusion in the joint venture. A statement on the purpose of the joint venture may be necessary as well.

Market strategies are also a section in the joint venture business plan. The plan needs to define the market the goods and services will target. This section may contain detailed analysis, graphs, and other information that define the market and show why the joint venture will be a success. In most cases, companies in the agreement will collaborate on this section to put together analysis from each partner. The length and detail will depend on the purpose of the joint venture; a competitive analysis may also be present here.

A final section in the joint venture business plan should be financial projections. The section will include information specific to product prices and cost of goods or services sold, expected sales and profits, and potential expenses from the activities. Pro forma financial statements may also be included here. The statements are a formal look at potential profits and allow banks or lenders to assess the venture’s probability for success. Other statements or documents may also fall in this section.

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