What is a joint venture and how do I start one?

Across the country, many budding businesspeople with great ideas and products they would love to bring to the market are put off the idea of doing so because they feel that they don't tick all the boxes required to make a go of their venture.

The truth is that, in some cases at least, they don't. After all, why should a fantastic inventor know anything about marketing, book-keeping or retail? It goes without saying that everybody has different skills and what is second nature to some will seem like an insurmountable task to others.

In such instances, rather than giving up on plans and dreams and confining perfectly good ideas to the bin, a good option is to think about a joint venture. 

A joint venture is where more than one party teams up in a bid to deliver a product or service with huge success. For the reasons we have already touched upon, doing this alone is simply not an option for many, so finding the people and organisations that complement their skills is the key to making their dream a reality.

This allows businesspeople to get their ideas off the ground, as suddenly they have access to the abilities, technology or knowledge that was previously preventing them making a success of their plans. 

For example, somebody who has created a revolutionary product that is set to take the market by storm but has no idea of how to promote it can team up with a marketing guru, who will ensure that the item is advertised and driven towards those who might buy it.

When turning to this option, people must remember to draw up terms and conditions that suit them prior to signing anything. 

The last thing anybody wants is to find out just a few weeks into a joint venture that they believe that they are putting in too much for too little reward, so deciding on the perfect set-up is not something to rush through.

On a similar theme, identifying the right type of joint venture is another important moment. If the parties want to deal with just one contract, a separate joint venture business is often a good idea, while a business partnership or a limited liability partnership can be a great alternative. 

Some people might even decide to completely merge their company with that of their partner.

Of course, a common concern might be how to find the relevant individual or business. A joint venture is only of use if the parties who need each other can be put together, so how should people make this happen?

A good place to start is the internet. Businesspeople should think about trawling through online forums in search of the person they need to help them get their project off the ground, while contacting website owners is another good idea. 

No matter what sector the scheme lies in, there will be somebody, somewhere who has all the expertise required to launch it.

Another possibility is word of mouth, as it can be amazing just how much knowledge and experience is contained within friends and friends of friends. 

However people go about finding their ideal joint venture partner, it's always possible to come to an agreement with the right person and launch any business.

For more information, you can acquire our Joint Venture Agreement, bringing you one step closer to setting up a business in partnership with another person or company.

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Published on: August 28, 2012

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