Ten Reasons to Engage in a Joint Venture

By PChip | Category: Business Management |

handshake Depending on how you look at the term “Joint Venture” and how you utilize a joint venture, it can mean different things to people. That’s the reason why there are slight variations in definitions for the term. Which definition you choose as your “official” one may vary from what other people consider the official definition of a joint venture (JV). However there are some very strong commonalities in the definitions:

1. A JV is an agreement between two or more people or businesses
2. JV’s provide benefits to all parities involved
3. JV’s are built around relationships

A Business JV

If you look at a JV from the business perspective, it is a strategic partnering and legal agreement between organizations, individuals, or businesses to mutually accomplish business objectives. The parties agree to work together in a manner that involves contributing equally, and they usually share assets, costs, risks, profits, other rewards, and/or the controls of a business endeavor. The venture can be for one specific project only, or it can be a long-term continuing business relationship. JV’s may or may not involve the exchange of money between the people involved. Many of them don’t.

The Creative Team JV

One example of a recognizable JV in the digital scrapbooking industry is what you see in most Creative Team (CT) situations. Like any other JV, the two participating parties share benefits.

Depending on the extent of the JV, designers may benefit by having their products go through a quality control process before they put them up for sale. Their products are seen and become more identifiable in online public galleries. They have sample LO’s and other projects to show customers, or get a boost in advertising for distribution announcements, etc.

Creative Team members may benefit by receiving free products. They gain recognition in the industry as professionals. CT’s may get additional exclusive products and sales or one-on-one training not offered through other venues, etc.

Reasons to Consider a Joint Venture

If you have a need for certain resources/assets or you have resources/assets that could fill the need of another - look at the possibility of a JV. There are many reasons to consider entering into a JV and here are just a few:

• to share or eliminate costs and risks
• to share or gain access to customer resources
• to access financial resources
• to collaborate on new product development
• to accelerate revenue growth
• to have a greater influence on the evolution of an industry
(by combining the strengths of like-minded parties)
• to better define industry boundaries
(build a stronger presence in unclear territory)
• to share people resources
• to combine branding
• to help diversify your businesses

When you have a want or a need to fill in your digi-scrapping business, remember to think outside the box and consider a JV as one possible option. Do a little research into what other people may be able to share with you. Do some introspective detective work as well and see if you can find something within your business that you can share or offer another.

Wait Not for the Other to Ask

If you want to JV with someone, don’t wait to be asked. Step up to the challenge and open a conversation with the other person and see if they would consider venturing with you. A question never asked is a question that goes unanswered. Be prepared to ask or be asked for a JV.

No Is Not a Dirty Word

If a JV isn’t right for you or your business, say no. There’s no reason to enter into an agreement that feels wrong, or timed wrong, or not what you are looking for. Saying no is the best thing you can do in times like that. If you ask someone else to consider a JV and they say no - don’t take it personally. It’s a business decision for them as much as it is for you.

Joint Venture Tools

Every business uses tools they feel are helpful to them. Businesses may have similar or even the exact same tool and yet use them in totally different ways. Designing software choices for digi-scrap professionals varies widely. Yet every digi-scrap professional has at least one and sometimes several software tools. We all use our designing software in similar ways while at the same time we each have own preferences and styles as well. JV’s are no different. They can be such powerful tools for your business. I encourage you to use them as they fit your needs.

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What’s Going On Behind the Scenes? « dsd-professionals.com October 17th, 2007 12:52 pm :
[…] up waaaay too much of my time. I’ll be glad to get it off my desk. Then there’s a Joint Venture (JV) I’m working on with a couple of sweet gals at a Yahoo Group I discovered recently. This […]
Olga October 17th, 2007 5:20 pm :
Very interesting article about how to make use of joint ventures in the digiscrapping sector, and a good way to outlined the benefits for both parts.

Thanks so much for it and best wishes. :O)
joint ventures offers January 23rd, 2008 1:11 am :
I have now cleared all my doubts. I have got much impact from your article. Nice post.

My hearty thanks.
DSD-Pro Business Reports » Digi-Scrap Business Report Issue #0004 March 31st, 2008 12:20 pm :
[…] Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention. Pricing may be the subject of a JV type exchange. […]