Why Your Business Needs a Joint Venture to Grow

Did you  know that only 2 % of business owners understand joint ventures, and how they can be beneficial to them and their company? Most of the top Fortune 500 companies gain significant revenue from these joint venture partnerships and are able to find great business success through undertaking them. Understanding joint ventures is a huge component of growth if you want to become the leader in your market or industry and continue to grow your business. 

What is a joint venture?

A joint venture is when two or more businesses get together and collaborate on a specific project. Within a joint venture there is collaboration and the businesses share their profits, losses, expenses and resources with each other. This joint venture is a legal entity that is separated from the rest of the businesses interests of the companies. They are generally characterized by sharing ownership, returns and risks as well as sharing governance of the project. This is when 2 companies align their goals for mutual benefit from their collaborative project. 

Joint Ventures: Fast Facts You Need To Know 

The most simple and common joint ventures are known as referrals aka commissions and financial advisers often recommend joint ventures and referral agreements because they perceive them as being a low-cost and low-risk option to grow a business.The ongoing payment for referrals keeps the relationship between the companies involved in the joint venture going and incentivises the continuation of the relationship. 

By understanding that only 2 % of entrepreneurs recognize and utilize the importance of joint ventures, you will have an advantage in your market that you can take action upon to grow and build your business. 

It is for this simple reason that CADMEN properties has been able to access one of a kind deals before they hit the market, and establish a flow of capital that others don't have access to. When you have the right joint ventures in place, you will not need significant budgets on marketing and advertising. This saves you time and expenses that can be put to use further expanding your business. We have similar programs across all branches of CADMEN, follow Build and Grow Business to learn more. 

Credit to Money, People, Deal by Stefan Aarnio for source information.