They might think that everything will go well according to plan. Typically, businesses only realize this after working with their joint ventures for a while. If you and your joint venture partner have different objectives, pursue separate goals, or manage the business in opposing ways, it means you’re not a great fit for each other. This scenario tells you that both parties had a miscommunication, and if it continues further, it will be best to part ways. For example, your JV partner makes a decision that doesn’t follow the joint venture agreement. You might initially gain a great first impression with your joint venture partner, but things won’t work without consistent communication. You can choose to team up with a joint venture partner and make marketing fun and valuable for yourself. By collaborating with non-competitive businesses, they can achieve their goal (whether to expand on a new market or gain more attention) without putting too much pressure and stress on themselves.

One of the main reasons why joint ventures work is that many businesses would like to stray away from competition temporarily. Take note, many small businesses are doing the same thing, so it can take time for you to find the right joint venture partner that can boost your appeal to your target audience. Forming a joint venture with a well-known brand will help you gain exposure and boost your credibility faster. Now, a joint venture can speed this up for your business. It can take months or even years to gain traction from a customer base. One of the biggest dilemmas of a small business is when they’re faceless to the public. Start learning the ins and outs until you (or someone from your team) can finally master a certain skill. So, for example, you can work with your JV partner’s Facebook ads manager if you’re struggling with your campaigns. Your small business can enter into a joint venture with a different business and gain access to that asset. This is not the only way to acquire intellectual property. And if you think you have limited access to it, perhaps you consider hiring more people to your in-house team. So if you’re going to join forces with a larger company or a popular brand, there’s a possibility for business growth and expansion through a joint venture strategy. Startups and small businesses typically have limited resources and access to capital for scaling projects. Possibility for business growth and expansion Some businesses explore more about a certain niche and realize that they can market to them. Enter a new marketĪlthough you’ll be closely working with a complimentary, non-competitive business, a joint venture will give you a chance to enter new markets quickly. If you want to learn about a different niche or industry, a joint venture is the ticket. Like I said earlier, your target market has other wants and needs. In a joint venture, you’ll share expenses with your partner on a project or campaign, putting less of a financial burden on you. For most small businesses, it’s like a gamble that never guarantees any worthy returns. Launching a marketing campaign on your own can cost you more. Your joint venture partner is expected to contribute a certain amount of funds, assets, and other resources to the project or campaign, depending on the terms of the arrangement. Is your business looking for new opportunities to invest in a project or campaign?Ī joint venture can help you test the waters and minimize the risk of seeking opportunities for new investments. On the other hand, a joint venture typically has a shorter duration since it only aims at a particular goal. Duration: A partnership can last long until a business is operating.

A joint venture can be made by individuals and business entities as corporations and even governments.

Members: A partnership can be made of two or more individuals who form a recognized association in operating a commercial space.

On the other hand, having an agreement on paper is not a requirement for a joint venture. This requires an agreement that explains the terms and conditions of the partnership.

Formation: A partnership is legally bound.

This gives you more flexibility on which goal you’re planning to achieve. Meanwhile, a joint venture’s purpose doesn’t revolve around earning a higher profit. It aims to run the business for the long haul and earn more profit. A partnership isn’t limited to achieving one project or goal.

Purpose: This is probably the most obvious difference between the two structures.

Four key factors differentiate a partnership from a joint venture. Most people use these two terms interchangeably, but they’re not the same.

Benefit of joint venture