Extend Your Reach Through Joint Ventures

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal.

Joint ventures can:

  • Help expand into key markets, develop new products, and improve productivity.
  • Improve credibility with new customers.
  • Expands your sales force and lower product distribution cost.
  • Raise barriers to entry for your competition.

If want to significantly increase market reach, break down barriers to entry, or generate skyrocketing revenues in a shorter period of time, there is no better course of action than creating a joint venture to expand your influence and create a powerful market presence.

You can greatly enhance your joint venture’s probability of success by following these four rules:

1. Agree on and set clear goals from the beginning.

2. Find a partner with a similar corporate culture. The best partnership is based on a mutual win-win relationship.

3. Understand the legal aspects of the deal and keep a win-win perspective.

4. Manage the relationship.

Remember, review your current business strategy and objectives prior to committing to any joint venture.

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