| If you have read anything about opening a business or | | | | Client relationship skills. |
| growing the business you already have, it's likely you've | | | | Creativity is a key skill in successfully seeking out and |
| seen the term joint venture, or JV. A joint venture is a | | | | developing joint ventures. You must be able to see all |
| way for you to partner with another business for a | | | | the ways that your business could fit into various joint |
| specific reason or reasons. You might find you can | | | | ventures. There are joint venture possibilities for |
| bolster each others' strong points or share each | | | | virtually anyone and any kind of business if you know |
| others' markets. When two businesses create a joint | | | | where -- and how -- to look. Creativity is also |
| venture, they are actually creating an entirely new | | | | important when you're explaining the benefits of a joint |
| business entity. | | | | venture to a potential business partner. |
| Joint venture actually refers to the reason for the | | | | Persistence is particularly important when you first |
| partnership and not to the entity created by the joint | | | | approach your potential partners. Small businesses |
| venture. Anyone can enter into a joint venture | | | | have a lot going on, and the owners can forget you if |
| agreement. The forming partners can be individuals, | | | | you're not careful. You might also have to explain what |
| corporations, organizations, limited licensing companies | | | | a joint venture is if they don't already know. |
| (LLCs), or any combination of these. Likewise, the | | | | You must have good visualization skills because you |
| resulting entity can be an LLC, corporation, or any | | | | have to be able to predict how your side of the JV will |
| other legal structure. | | | | benefit your partner, and how the two sides will fit |
| Joint ventures are quite common in large businesses. | | | | together. Think of it as a jigsaw puzzle. If you're forcing |
| They're often necessary for the purpose of entering | | | | the pieces together, you need to find a better fit. No |
| into certain markets. Some countries require that | | | | breaking out the saw, now. |
| foreign companies enter into a joint venture with a | | | | When you're putting together your JV agreement and |
| company from within the country in order to do | | | | business plan, you'll spend a lot of time negotiating with |
| business there. And, even when a joint venture isn't | | | | your partner. You'll want to make sure you're getting |
| required, having one partner located in the geographical | | | | exactly what you want out of the deal, and that |
| region offers a local presence and helps keep a better | | | | means sometimes you'll have to be pretty hard-nosed. |
| eye on the market there. | | | | If you have difficulty entering into professional |
| Even where it's not required, joint ventures offer | | | | negotiations, forming a strong joint venture that |
| fantastic benefits when they're not taken too lightly. | | | | provides the best benefits for you will be very difficult. |
| One reason many small businesses enter into joint | | | | Once you have successfully entered into a joint |
| ventures is to take advantage of the products, skill | | | | venture, you will need to find and build a client list. If |
| sets or customer base of another company. | | | | your partner is providing clients for you, you must be |
| For example, let's say you have incredible computer | | | | extra attentive to their needs and make sure you don't |
| repair skills. Your only problem is that you don't have | | | | lose them for your partner. If you have clients, they |
| much of a customer base and very little money to | | | | might be wary of your new business and fear that |
| advertise. To help your business grow, you approach a | | | | your products or services are about to change or |
| local computer sales store that doesn't currently offer | | | | become more expensive. It's important to keep in |
| repair services to its clients. You propose a joint | | | | close touch with them and explain the changes in |
| venture where the store refers its clients to you, and | | | | detail. |
| only you, for repairs. The benefits? You get a steady | | | | If you properly research what it means to enter a joint |
| flow of business at no cost to you, and the store adds | | | | venture, and look at all the different possibilities before |
| valuable repair services to its list of offerings to clients. | | | | choosing a partner, you are likely to succeed and reap |
| Joint ventures can be cause for celebration for all | | | | great benefits for your efforts. The main thing is to be |
| parties involved -- or they can be a huge disaster if | | | | assertive, honest with your partner -- and most of all, |
| you're not careful. Successful joint ventures have five | | | | to make it fun! Justin Bryce has been a contributing |
| common characteristics. They are: 1) Creativity; 2) | | | | author for this website and is an acknowledged expert |
| Persistence; 3) Visualization skills; 4) Negotiation skills; 5) | | | | in the field of Joint Ventures. |