The 7 Biggest Benefits Of A Joint Venture

Last updated 19/06/2019

Joint Venture, Developer, Investor

1. All new expertise

A joint venture offers a great opportunity to expand upon your partner's specialised knowledge.

You can increase your technical expertise while offering them your own. Joint ventures enable you to gain access to new staff, equipment and capital.

Two - or more - heads really are better than one!

2. Access new markets and distribution networks

You can experiment and expand far more comfortably when you have an expert by your side. Joint ventures allow you to expand into a new sub-sector or gain valuable insight into a new local market.

Safe in the knowledge that the logistics and regulations are taken care of by your local experts.

3. Fantastically flexible

A joint venture can be hyper-specialised with a limited lifespan. So you don't need to worry about an extensive commitment. Your partnership will be time sensitive, and there are ways to exit a joint venture.

This means you can enjoy fantastic flexibility with reduced risk.

But if you love your partnership, you can use it to build great long term relationships between your companies.

Win win!

4. Successful synergy

Great partnerships bring the best of both businesses. Great things can come from the combination of company cultures and ideas, but there's more!

Joint ventures bring in Financial synergy that lowers the cost of capital.

They also bring operational synergy that makes everything efficient.

5. Increase your customer base

You can market your product to a whole new customer base thanks to your joint venture partner. You also have the opportunity to offer your partner’s products and services to your own existing customers.

It’s a win-win for the both of you!

6. Build up your brand

Collaborate for increased credibility. Choosing a well known and respected brand for your joint venture will prove that you're one to watch. And a trustworthy business to boot!

Your partnership will also give you increased market visibility.

7. You’ll be in it together

So, you’ll be sharing talent, industry know-how and expertise.

If that’s not enough for you, you’ll also share the costs and responsibilities. Should the worst happen, this means you’d share the losses and the costs of failure too.

But don't be pessimistic.

A joint venture lowers your risk. This gives you more opportunity to explore the market and expand your business.

Best of all, you won’t have to worry about finding the money all by yourself.

Bonus - Joint Ventures are especially popular for building international relationships. This is the ultimate way to expand your market area, and allows you to cooperate with different cultures!