As an Internet Attorney, I know that when you’re putting together joint ventures for your online business, it’s important to consider your long-term interests.
Here’s a costly brick-and-mortar biz example from Starbucks on what not to do.
Several years ago, Starbucks wanted to distribute its coffee in grocery stores and other places beyond its cafes. Because Kraft already had the distribution network in place for its food, Starbucks signed a contract to have Kraft distribute its coffee too.
The mistake?
The contract was designed to last forever without an easy way to get out of it. But times change, people change, and so will your business needs. Plan accordingly.
Now Starbucks is trying to weasel out of the contract. If Kraft can enforce the agreement, Starbucks will end up paying out billions to escape and set up its own distribution network for stores.
No matter how attractive a joint venture deal looks, be sure you put in place the right contract language that lets you walk away when it is profitable to do so. There are at least a half dozen ways that your Internet attorney can help you do this both legally and ethically.
To your online success!
-Mike the Internet Attorney
All business relationships end. A few when one of the parties is buried six feet under. Most end for other reasons: an owner’s divorce, bankruptcy, personality conflicts, etc. The list goes on. Yet one thing is clear: most Internet entrepreneurs have done absolutely nothing in advance to prepare for the inevitable.
If your economic circumstances have changed because of the recession, don’t breach your contracts (joint venture agreements, leases, car loans, mortgages, etc.). You can almost always negotiate a better deal with the other party instead.