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venture (often abbreviated JV) is an entity formed between
two or more parties to undertake economic activity together. The parties
agree to create a new entity by both contributing equity, and they then
share in the revenues, expenses, and control of the enterprise. The
venture can be for one specific project only, or a continuing business
relationship such as the Sony Ericsson joint venture. This is in
contrast to a strategic alliance, which involves no equity stake
by the participants, and is a much less rigid arrangement.
Organizations can also form joint ventures, for example, a child welfare organization in the Midwest initiated a joint venture whose mission is to develop and service client tracking software for human service organizations. The five partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource.
The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability.
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Joint Venture Building Trust
venture is a form of partnership where businesses come together to bring
in the knowledge, marketing, and profits. They can take various forms to
complete the two companies’ together. Big companies can form alliances
with quicker results. In addition, small companies have an opportunity
to merge together and form strategic alliances with big name companies
for expanding and making the small company larger with the big company.
According to Commonwealth Alliance Program (CAP), businesses anticipate strategic alliances to there account for 25% for all the revenue by 2005, and a total of 40 million dollars. Small businesses cannot ignore the rewarding of joint venturing to make there company grow bigger. Using the knowledge to expand the market, developed new products, productivity can be time consuming and costly.
By forming, a joint venture can gain lead-time share the expertise in the company and lower the cost. At what time you start a new business, usually it is a struggle with trying to get the ventures acceptance with in their market, needless to say the struggle of getting customers to buy from you.
Joint venture can dramatically improve your credibility in bringing more customers to you. By forming a joint venture with a very good partner, you can expand your sales force and also lower the cost distribution. Do not rush into a joint venture without understanding the key concepts and partnership ventures.
It could be poorly planned and you also have to make sure you have the right partner to do this and make it work for both of you. So if are planning on joining a Joint Venture learn all the secrets of joint venturing to be successfully and to make your business grow faster.
The cost for planning Joint Venture is inexpensive, regardless of who says otherwise, and the cost for not having a plan with your partnership is more important, because if not you could loose profits, failed relations. You will have to know from the beginning what you and your partner is trying to accomplish.
You can start by reducing the product cost; expand sales, or better marketing skills. Your partner may have different goals, but compatible with yours. It is best to have a partner based on mutual trust, since it is win- win relationship.
If you have a small business, it's best to focus on long-term relationship with you and your partner, that also cares about gaining market quickly, then this business will grow fast. It is also very important to understand the legal aspects of dealing with this. Keep in mind that this is a win-win situation.
Now once your joint venture is formed the real work takes place. It is built on communications skills, trust, and understanding how to run the company. Positive thinking with your partner is also very important. Take your time to understand everything and you will succeed in your Joint Venture expedition and you will do well into the future.
The main idea is to join a partner that offers both sides a winning outlook. If you join, partners in Joint Venture that offers no future, likely you will waste time, energy and money.
Before starting your Joint Venture hunt, you might want to become informed, since you will need to know what JV entails. Some of the best advice in Joint Venture is available online.
If you are interested in raising funds for your business to join in a Joint Venture expedition you might want to go online and do a bit of researching.
The site focuses on funding companies by offering them the ability to post a profile. The company will post the profile and provide returns on the attractions. You will have to pay a fee, however the company will offer payment plans, making it convenient for you.
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