A Definitive Guide on Joint Venture.
                     A Definitive 
Guide on Joint 
Venture
INTRODUCTION
 A Joint Venture involves two or more 
businesses pooling their resources and 
expertise to achieve a particular goal. 
 The risks and rewards of the enterprise 
are also shared.
Source: www.infoentrepreneurs.org
What can you get from 
joint venture?
 A Joint Venture could give you:
 more resources
 greater capacity
 increased technical expertise
 access to established markets and 
distribution channels
Source: www.infoentrepreneurs.org
Types of Joint 
Venture
Co-operate with 
another business
 One option is to agree to co-operate 
with another business in a l imited and 
specifi c way. For example, a small 
business with an exciting new product 
might want to sell  it  through a larger 
company's distribution network. 
Source: www.infoentrepreneurs.org
Separate joint venture 
business
 Alternatively, you might want to set up 
a separate joint venture business, 
possibly a new company, to handle a 
particular contract. A joint venture 
company l ike this can be a very fl exible 
option.
Source: www.infoentrepreneurs.org
Business partnership
 In some circumstances, other options 
may work better than a business 
corporation. For example, you could 
form a business partnership. 
 You might even decide to completely 
merge your two businesses.
Source: www.infoentrepreneurs.org
Joint venture - benefits
 A successful joint venture can off er:
 access to new markets and 
distribution networks
 increased capacity
 sharing of risks and costs with a 
partner
 access to greater resources, 
including special ized staff , 
technology and fi nance
Source: www.infoentrepreneurs.org
Joint venture - risks
 Partnering with another business can be 
complex. It takes time and eff ort to 
build the right relationship. 
 The objectives of the venture are not 
100 per cent clear and communicated to 
everyone involved
 There is an imbalance in levels of 
expertise, investment or assets brought 
into the venture by the diff erent 
partners
Source: www.infoentrepreneurs.org
Choosing the right joint 
venture partner
 The ideal partner in a joint venture is 
one that has resources, ski l ls and 
assets that complement your own. 
 The joint venture must work 
contractually, but there should also be 
a good fi t between the cultures of the 
two organizations.
Source: www.infoentrepreneurs.org
Choosing the right joint 
venture partner
 When you decide to create a joint 
venture, you should set out the terms 
and conditions in a written agreement. 
 This wil l  help prevent any 
misunderstandings once the joint 
venture is up and running.
Source: www.infoentrepreneurs.org
Make your joint venture 
relationship work
 A clear agreement is an essential part 
of building a good relationship.
 Communication is a key part of building 
the relationship. 
 It 's usually a good idea to arrange 
regular, face-to-face meetings for al l  
the key people involved in the joint 
venture.
Source: www.infoentrepreneurs.org