Why You Need a Joint Venture Partner

Written by Marc on July 19th, 2007

I think the title of this article is self explanatory ? at some point your business or organization may need a joint venture partner.  Why?  Below are four common reasons why you might want a joint venture partner:

Lack of Expertise

You may have good skills but are lacking in certain areas.  In my case, I am good at seeing the big picture and designing websites, but I lack content creation skills.  So, I went out an found someone to partner with who excels at writing and complements my skill set.

Lack of Capital

Perhaps you have some inside information on where to get a screaming real estate investment deal but don?t have the money to take advantage of your good fortune.  If you were to partner up with someone that has the money required to make the deal happen you could take care of the management and groundwork, and then you both profit.

Need to Grow

If your organization is doing well and you are considering expanding into new markets or new types of businesses, a joint venture partner may help.  In this case, they either would take over the day to day operations of your existing venture, or head up your new business venture.  Not only will they offer their expertise and possible capital, but they also offer their time ? which every business owner will agree with me is a limited resource.

Mentoring

I put this here because it does have some merit.  For example, if you were interested in developing condominiums but didn?t have a clue on how to go about it, you could find a mentor to teach you how to do it.  In turn, you would work for them (usually for free) in exchange for them sharing their wisdom.  The reason for this being a joint venture is that the mentor profits (or can profit) both from your expertise and work you do for them, and the person that is receiving the mentoring can profit from the lessons they learn.

Read more articles on Business Ideas and Entrepreneur and Online Opportunities and Real Estate Investing.

Leave a Reply

CommentLuv badge