Why a Joint Venture?
Between a joint venture and a single proprietorship, a joint venture wins hands down when it comes to popularity points. Many people start their business in a joint venture especially the young ones who are just testing the market. Just what is it with joint ventures that people prefer them more to single proprietorship?
For one thing, a joint venture means that you have partners on your side who will care about the business as much as you will. This reason is enough for some people especially those who just want somebody by their side to help cushion the blow in case it does not become a success. There is after all easier to accept that you and a partner failed in a business than you failing alone.
Another benefit that joint ventures have that is very attractive to young people who are starting their business for the first time is the fact that there is less risk involved. When you have partners, you will need to invest less money and also less time. You will also not be responsible for the whole company. If you are fresh out of college and you do not have the money to invest, having a partner who will raise the other half of the capital is important.
Some people also go for joint ventures in exchange for something that they are lacking. For instance, people who have the idea but not the expertise can partner with someone who is knowledgeable in the industry to make the idea come to life. Someone who has the money but do not want to do all the dirty work can partner with someone who do not have the capability to finance it but have the knowledge on how to make it work. These people are called the financiers and the industry partner respectively.
Some people partner with others in exchange for a service. One will become the brains while the other is the operation. Others seek partners by virtue of their contacts and connections with agencies. With that person on board, selling the products will be easier. The same goes with those who seek partners purely for their citizenship as with foreigners who want to start a business in a foreign land.
Joint venture can be a success provided that clear parameters were set at the start of the business and that the two partners have the same work ethic, work personality and vision for the company. Ideally, they should also be able to complement each other work wise. For instance, one can be good with numbers while the other is good with the design. One will take care of the administrative while the other works on the creative. This way, each will have a contribution to the team and therefore preventing discord between the two or among the partners.
Another important criterion is of course trust. The two partners must be able to have faith in the other. They should also be able to reach an agreement and both must know how to compromise if they want the partnership to work.
Other Joint Ventures and Your Life Articles
Joint Ventures And What You Should Know About It
What are the elements of a good joint venture?
Pros and Cons of a Joint Venture
The Cons Of A Joint Venture
The Pros Of A Joint Venture
Joint Ventures: A Simple Introduction
Should You Start a Joint Venture?
Reasons Why Companies Go For A Joint Venture
What You Need To Consider When Choosing A Joint Venture
Understanding a Joint Venture
How to Convince Other Companies to Accept your Joint Venture Offer
It Takes Two: Starting Up A Joint Venture
Advantages of Joint Ventures
Five Things You Have To Consider When Opting For A Joint Venture
Why a Joint Venture?
Why Big Business Firms Form Joint Ventures?
Making The Most Out Of A Joint Venture
Having A Helping Hand: How To Go Into A Joint Venture
Joint Ventures, What it is About?
Three Important Tips when Entering a Joint Venture
Reasons Why You Should Go For A Joint Venture
Joining A Joint Venture: What To Look For In A Partner
You Need A Partner: Taking A Look At Joint Ventures
Drawbacks of Joint Ventures
What To Consider When Starting A Joint Venture