Succeeding in a new business of any kind can be difficult. It takes time, dedication, and money to succeed. You may have the time, and you may be dedicated, but finances are tight.
If so, it can be challenging for you to do the necessary projects you need… so that you can achieve the success you dream of.
How many times have you heard or said, “If I only had the money.” There is probably more than one person out there with similar goals to yours.
The truth is, if you could meet this person and work together, there’s a chance you could both do great things.
How does this happen? How can you find people who have similar goals and dreams? How can you find someone to help you achieve success? That’s what this book is going to show you.
I’m going to introduce you to a powerful tool you can use to achieve success in the business world, even though your competition may be fierce.
What is a Joint Venture? If you think JV stands for Junior Varsity, you might be right, but you might not be. In the business world, JV stands for Joint Venture.
Joint Ventures are very popular. If you don’t know about them, and aren’t using them, you can be at a disadvantage in the business world, because your competitors probably are using them.
They’re using joint ventures to achieve success over you in the business world. A Joint Venture is a business agreement. It’s like a joint undertaking where the parties involved agree to establish and new assets.
The parties contribute equity. Since they share control, they also share in the expenses, revenues, and other assets.
It is important to know that a joint 4 venture is NOT a merger. There is no transfer of title or ownership involved.
JV’s are usually for small projects. They can, however, be used by big corporations who want to diversify.
When you’re just starting out in a business, a joint venture can help you complete and achieve success in projects. Often, projects can’t be started because of the costs involved. With a joint venture, the costs are shared.
It helps both achieve profits. When this type of temporary partnership is created, it can be for one individual project, or it can be a relationship that is continuing.
Either way, both parties need to be dedicated and focused on the success of the joint venture partnership.
You also need to have a good plan developed, since you’ll both be putting money into the project. If you think about it, you’ll know that the act of partnering with someone else to achieve a common goal isn’t new.
It’s a well-known process that has stood the test of time. A joint venture works best when it is executed well. This means everyone knows what to do, how to do it, and when it needs to be done.
Then, they do it. It is important to define what everyone needs to do. Perhaps create some type of agreement. This will be the basis for your relationship.
There are a lot of reasons to form a joint venture. You can expand your business, develop new products, or move over into new or larger markets.
If you have strong growth potential and new original ideas, a joint venture could do a lot for you.
It could give you knew resources, increase your capacity, improve your technical abilities, and give you access to markets and distribution channels you don’t currently have.
Finding a partner, developing a plan, and negotiating a contract…all seem like a lot of work? You might think it’s more work than it’s worth, but it isn’t.
When you have the right mindset for business, you want to find ways to improve your business in every way.
A joint venture may be just what you need to help your business advance. Just remember, they don’t have to be permanent arrangements, and you don’t need to exchange trade secrets.
All you’re doing is finding a way that is mutually satisfying to both partners to help both of them advance. You can’t enter into a joint venture with a closed mind.
You have to realize that there are many different ways of doing things. Someone else’s way might not be wrong just because it’s different. You need to develop a new mindset, and stop thinking,
“That’ the way it’s always been done.” If you do, you can open yourself and your business to a world of new possibilities.
In a joint venture seeing things through an open mind and looking at it from different perspectives is necessary. A new mindset will help you see that you can find opportunities anywhere.
Look at each opportunity as a seed. Plant it together and watch it grow. Some find it beneficial to develop a joint venture with a non-profit organization. For this type of venture, the obvious draw is the exempt status.
There is no set number of partners in a joint venture. Many JV’s have more than two partners. Many times, these partners choose to be “silent” partners. Not everyone agrees that having two or more partners is a good idea.
It is obvious that having more partners will cause the levels of management to be more complex in the joint venture. It can lead to disagreements and the increased monitoring costs.
On the other hand, having more than two partners in your venture should earn greater returns than if there are only two partners.
There is no definite guarantee that a 6 joint venture will succeed in either case, or that one is better than the other.
Multiple partners do, however, give you resource diversity. You will probably find that this diversity will add value to the joint venture in time.
