Go For Your Win-Win Situation Of Joint Venture Partnerships – Your First Steps In Understanding Their Power. You’ve almost certainly heard of stories whereby people have gone from barely getting by financially to, almost seemingly overnight, having become quite wealthy indeed. You have probably also heard that a number of people out there are making millions of dollars as a result of moving in to what is termed Joint Venture partnerships. The thing that makes these people’s stories so incredible to comprehend is that before they went in to these partnerships, they were actually unheard of and probably earning what they would term just an average income.
It was these partnerships they embarked upon that created the rapid improvements in their businesses and profits.
Joint Ventures are where businesses merge and work together to contribute to, and share, profits, knowledge, resources, tools, markets, expertise, information etc. They can actually assume various different composition modes, dependent upon the type of partnership situation that is being formed, and for what purpose.
It might be that a group of smaller companies or businesses unite in order to stand up to, and be a force to reckon with, the bigger companies, or businesses, within their industry. Large companies or businesses will sometimes form mergers/ unions with fast-growing, smaller businesses that have demonstrated the right promise.
Smaller companies are also able to form business mergers/ unions with companies that have a big name within umzuege their industry in order for them to be able to increase their reach to larger communities/ globally.
It was approximated that around 25% of all of 2005 profits of around $40 trillion could be attributed to the fact these profits were as a result of businesses having gone in to JV partnerships with other businesses. This really then lends itself to demonstrating the importance small business owners should definitely not disregard the profits JV partnerships can also afford them.
Let’s take a look at a few of the valuable opportunities you can obtain from forming these JV partnerships.
o You can greatly reduce the lengthy amount of time you might ordinarily have spent yourself on business growth. If you currently own a small business, then forming need to continually be e.g. creating new products, therefore freeing up more time to be able to expand your market reach etc. All of these things do not occur immediately, as they take time to happen, so freeing more time for you to concentrate on one or two areas within your business growth, and do them well, instead of trying to do them all, and working with others who have expertise in other areas within the JV partnership and with them concentrating on those areas, the result would be that you all will only see your businesses grow and profit a great deal more.
JVing also enables you to attain more leads, hone in on the expertise of all who form the partnership, accumulate fewer costs, have further reach, achieve greater profits, merge lists etc.
o Your businesses’ credibility will be greatly enhanced. One of the most frequent problems faced by new businesses starting out is that they find it difficult to gain credibility in their niche market, and with their customers.
Forming JV partnerships with other businesses/companies that are already known and trusted will considerably improve your credibility with your customers.
o You are able to have new income sources. Usually small businesses/ companies don’t have sufficient funds and resources required for expansion and growth of their businesses.
Forming these type of JV partnerships with reliable, established, rock-solid partners, will result in your credibility, and profits etc, being able to be expanded for a much lower cost.
o You will be protected from competitors, of whom there are many out there, and, in all likelihood they will otherwise attempt to gain access to your business.
This is why a Joint Venture partnership with some of the big players out there will assist in lessening the likelihood of this occurring, resulting in building a solid business that keeps your competitors out, but which offers higher profits as a result.
Taking note of all these amazing benefits you can attain from forming JVs, you are more than likely extremely keen to commence going in to one asap. However, it is vitally important to not rush in and join in the first ones you come across. When a poorly carried out, and poorly planned, partnership is formed, and too quickly, then it is definitely fated from the start.
Then what secrets constitute successful Joint Ventures?
o You need to have clear objectives, knowing what it is you want to achieve with this partnership, right from the very outset. The partner(s) you might select might not have the same goals exactly as you have, but they should complement yours.
o The correct partner(s). The most successful partnership(s) should create a win-win situation for all involved. It is important to find people that are truly interested in and that have set similar objectives to you, as, if this is not the case, and they are at odds with your objectives you will more than likely be at loggerheads with each other in the not too distant future.