Could your business benefit from a joint venture?

This weekend I was having a chat with a friend over lunch and of course with each of us owning businesses we inquired about how business was going for each us. Through chatting my friend brought up joint ventures and asked me my thoughts. I shared my thoughts with her and I thought it would also be helpfully to share my thoughts with you, my audience, as many of you might be asking yourself the very same question.

First, let us start with a definition. What is a joint venture? A joint venture is defined as a contract entered into by two or more individuals or companies to engage in a business transaction for profit without actually becoming a legally binding business partnership.

Now, that we have defined joint ventures lets talk about them. The purpose of a joint venture is to of course, is to bring in business and make money. So, is a joint venture for you? As with everything else related to your specific business, it depends. What’s right for one business might not be good for another so as always evaluate the option of joint ventures as it relates to your business.

Let’s now take a look at some of the pros of entering into a joint venture.

• Access to more resources
• They are flexible
• Opportunity to enter new markets
• More exposure in the markets

While there are many benefits to a joint venture there can also be cons.

• All party’s to the joint venture are not clear on their contribution or the rules of the venture
• Risk of joint venturing with the wrong people or companies
• Mismatch of those included in the joint venture assets, expertise, and resources
  

My thoughts? I think a joint venture with the right set of people is worth the risk. The benefits of going into a joint venture can make you and your partners greatly successful, but again it’s all about having the right mix of individuals or companies.

Remember with any partnership such as a joint venture it is a wise idea to draw up an agreement that ALL entering into the joint venture agree on and have each individual or company sign the agreement. The agreement should include all parties to the venture, each parties contribution to the venture, the benefits, and any penalties for breaking the agreement. Each party to the agreed upon joint venture should also receive a copy of the agreement. MTM readers don’t forget to download your free report, “12 Reasons Why People Aren’t Buying From You” TODAY!!!!

Tags: attract new clients, Business, client attraction, get new clients, getting it all done, Joint Venture, Professional services, Solo professional, strategizing, strategy sessions