While joint ventures (JVs) can be a good strategic move for all businesses, they are particularly beneficial for entrepreneurs. A business may enter a joint venture if they are entering a new market place or geographical region. A joint venture will help take it to a new plateau.
The relationship between joint ventures and entrepreneurs is much different. An entrepreneur typically starts out with an innovative idea, and then develops that idea as far as he can. He will promote his product and maybe seek outside investors, hoping that he will be able to stay in charge and run his own business.
A problem may develop when the entrepreneur expands his business. A joint venture is an ideal solution, because it can open up a new customer base, distribution channels, and market penetration for the once tiny business.
A recent Forbes article discusses some of the ways as to how a joint venture can benefit an entrepreneur:
“The possibilities that can be created with JVs are only limited by your imagination. Some common examples include joint ventures that focus on research and development, marketing, distribution, access to new markets, geographic reach, etc. The list can go on and on, although I wanted to show how JVs can work from a marketing perspective.”
The article goes on to explain how an entrepreneur who sold training programs entered a joint venture with a larger company. The entrepreneur gained access to the information of the non-buyers of the finance training program, and sent letters to those who were looking to become a consultant. In the end, the larger company received additional profits from the non-buyers, where they wouldn’t have before, and the entrepreneur gained access to a very large potential customer base, ultimately expanding his business.
If you’re interested in joint ventures, contact us.
— by George Tyler