Looking to Engage in a Joint Business Venture?

Looking to put up a fashion retail store but is short on capital? Perhaps you have but you are having second thoughts since you don’t have much knowledge about this specific business.

A joint business venture may be the deal for you.

Image credit: Google Enterprise

Maybe you have enough capital to get the business going but have not a single clue where to start and where to find the best deals on wholesale sunglasses. Well if you are eyeing a joint business venture, you may want to read about its advantages for a little help on your decision.

In a partnership, you will have additional resources. Since it is owned and operated by two or more people, financial responsibility isn’t entirely dealt on you. And it’s not completely about money as resources can take many forms such as idea and manpower. Even if you don’t have capital but you have a really good idea that you think has potential, you may find someone who can be your partner and do the initial funding.

It’s not just the resources that you share/pool. You and your partner/s will also share profit by the terms agreed upon. Conversely, you will also share risks and losses by the same ratio as in profit-sharing. This way, troubles are somewhat eased because they are shared by every partner.

Naturally, you will have access to a wider, deeper market. In a partnership, you will have access to customer database/s that you previously didn’t have. If one of your partners have a wide and deep database, you could be encompassing a demographic that you feel is impossible if you were in a sole proprietorship. Just think about the diversity of people a single email from you will reach.

These may all sound good but of course a joint business venture also has disadvantages. We’ll tackle them in part two of this article.