WWWHelper

Small Business Resource Center

Print This Page


Site Menu

FYI...

09. Let's Get Started, Create The Business Legally
Start Your Online Business Legally By Registering Your Business And Creating Your Brand Identity:
What is Your Business? You need to clearly understand what your business is, what you expect of it and how you want to portray it to your customers. It makes a lot of sense to put down on paper your business plan. This will clarify a lot of issues that you may not have considered before, and is a...

10. Work From Home Or Not Work From Home
Should You Work From Home Or Not Work From Home? Consider These First.:
Starting a home-based business or taking the decision to work out of your home is not one that you can take lightly or quickly. This decision needs to be thought through, considered for practical and legal aspects and in tune with your personality. No doubt a lot of people make a good living worki...

04. Consider Your Passions First When Deciding On Your Online Business
Consider What You Love To Do Or Your Passions First When Deciding On Your Online Business:
To help us sort out which niche you should enter, we will need to evaluate what your interests are. I start here because most people would rather do something they enjoy than do something they do not enjoy ,and have to be forced to do. Odds are you will more likely succeed, if you are enjoyi...

11. Building Your Online Business Web Site Part 1
First Article On Building Your Online Business Website:
Building Your Online Business Website An online business website has virtually become essential for every business and industry. Whether you sell books, software, hair clips or automotive parts, an online presence has many advantages. If a business doesn’t have an online business web...

Small Biz Tip Category: Tips And Ideas
 
Small Biz Tip Menu
 
Blog Home ]   [ Announcements ]   [ Blogging ]   [ Home Business ]   [ Kick Start ]   [ Marketing ]   [ Tips And Ideas ]   [ Web Site Mgmt. ]   [ What Is... ]   [ All In Order ] 
 
Search Blog ]  ]   [ Add to Technorati Favorites ]   [ Subscribe To Raw XML file ] 
 

"Joint Ventures: A Simple Introduction"


There are no comments shared for this Small Biz Tip.

Click here to be the first to share your comments for this Small Biz Tip.

Thursday, April 1, 2010

Whether you're new in the art of business or have been an entrepeneur for some time, you'll eventually come across the idea of becoming part of a joint venture. It may sound like a bit of complicated business talk but a joint venture is a variation on the age-old idea of a business partnership. Though, of course, it's a lot more complicated than that.
Joint ventures are legal entities created when two or more companies pool their resources for a single goal.

As legal entities, they are similar to corporations, able to operate independently of its founding companies and has the corresponding rights as a business operation - this means it can acquire properties, has separate liabilities and assets and can sue and be sued in court. Joint ventures usually come about in the way that all partnerships usually come about - one party has something that the other wants and the other party is willing to share its resources to the benefit of both. Joint ventures are formed by small companies hoping to expand, while global companies usually does them so that they can enter a particular country's market.

There are several advantages to joining a joint venture. The primary one is that a joint venture is a shared business - liabilities and assets are divided evenly between two or more partners. This can enable the participants to have higher profit margin for a lower amount of risk. Usually, when a business enters a new market, the risks involved can be terrifying for a new company - even larger corporations tread lightly when they enter a market. Going into a joint venture with partners can make sure that the price of failure is not devastating for the company.

Another advantage is that partnering with someone who already has the infrastructure ready for your product enables you to deliver the product faster than other businesses. Trying to build up a distribution channel is a difficult proposition. It costs money and can be subject to delays - having ready-made distribution points provided by your partner can make it easier for a company to deliver the product and helps them focus on one part of the operation. Joint ventures also carry with them the weight of the partners' reputations - having a well-known and trusted brand backing you will often help you sell your product more.

There are, of course, disadvantages. The primary one is that all of this profitability depends on your partners' dependability. Having unscrupulous or less-than-stellar business partners can cost you a whole lot of money. Another one is that a joint venture often involves integration and this can be difficult for both parties - culture clash and integration problems will crop up, if you're not careful.

It sounds all complicated but the process of going into a joint venture is actually very easy. The formulation of a joint business plan is almost always the first step; it assures that all the participants are on the same page and assures them about the efficient division of work. After that, legal and binding agreements are signed to confirm the partnership and it goes forward from there.

Joint ventures are a great way to penetrate a market and I hope this brief introduction gives you the bare bones of what you need to get into one.

Provided By: Ray Plumlee
Website Address: www.wwwhelper.com



This Small Biz Tip Entry Viewed 3,407 Times
The PermaLink for this Small Biz Tip is:
Joint Ventures: A Simple Introduction
 
Small Biz Tip Menu
 
Blog Home ]   [ Announcements ]   [ Blogging ]   [ Home Business ]   [ Kick Start ]   [ Marketing ]   [ Tips And Ideas ]   [ Web Site Mgmt. ]   [ What Is... ]   [ All In Order ] 
 
Search Blog ]  ]   [ Add to Technorati Favorites ]   [ Subscribe To Raw XML file ] 
Go To Top Of Page