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Advantages And Disadvantages Of Joint Ventures!

Date Added: January 16, 2009 07:29:00 AM
Author: Reshma Jalta
Category: Business & Economy
First thing is partnering with a company that will compliment you well. Like getting married, you need someone who can be your better half, having similarities is great but if everything you bring to the table is exactly the same then where can you go from there? What you want form a joint venture is to have opportunities to gain capacity and expertise. You should be able to gain as much from the other company as they can from you. That is what will make a great joint venture. You should look at how you can enter related businesses or new geographic markets or gain new technological knowledge. If you plan on entering into international joint ventures, for more details visit to www.joint-venture-guide.com explore access to greater resources and international specialized staff and technology. These are all possible advantages if you play your cards right. Another advantage of a joint venture is that any risk involved is shared, so less pressure on you. Also the flexibility in a joint venture can make your life a lot easier. The life span of the agreement can be just enough to cover what you want as a joint venture is not a life time partnership. You have to remember that a partnership is like joint custody over kids. A joint venture is joining forces for one particular project and not putting two companies together forever and ever. 80% of all joint ventures actually end with one party selling out to the other. Of course with all advantages there are disadvantages. Firstly, the steps it takes to get to a joint venture is hard. It takes time and effort to build a relationship with another company before getting to the joint venture stage. When you get there, for more details visit to www.jointwebventures.com then there's the agreement process. Since two brains will be running one body, you need to know where your place is, who has more say in what area, expertise need to be balanced, effort should be equal etc. If the objectives of the joint venture are not clear in the beginning then it will definitely cause problems in the future. For international joint venture, things may be a little harder as different cultures, styles and ways of managing are different. The two company heads are not the only two people who will be interacting and other people should be able to communicate with each other properly, not clashing of heads involved. Good thing all disadvantages have solutions, and that's the agreement process. If everything is agreed upon in the beginning and it's on paper, then you have less chances of messing up.  
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