The term business joint ventures refer to two independent

companies or more who agree to establish a new company.

These companies legally commit themselves to contribute

equity for the new company, as well as share their

technology and skills. In return, they share both profits

or losses and control over this organization. A joint

venture can be executed for a limited period or a

continuos period.

Business joint ventures have become the latest and most

viable business model for many online companies because of

the following reasons: Globalization has opened a world of

possibilities, where different languages and cultures are

no longer barriers. Today international travel has become

the norm.

The other reason is the internet. The net has leveled the

playing field. It has also made the use of technology have

the winning business edge. These companies see business

joint ventures as the next logical direction their

organizations must take, if they are to remain competitive

and profitable.

Do you own a profitable online business? Are you wondering

what’s next? Consider then, the many benefits a business

joint venture can provide you.

First, with a business joint venture, you’ll gain access to

other markets. This will then open additional or bigger

streams of profits for you.

Second - Think of the synergies you create in the business

joint venture. All of the partners benefit from the

exchanges of information, such as access to modern

managerial practices and the brain power of your manpower.

However, you must be diligent in picking the right

partners. It has to be a

win-win situation for all of you. Choose partners who

complement your strengths. Partners who’ll share resources

you do not have and can benefit from.

Third – Diversification, which means that by agreeing to a

business joint

venture, you’ll be spreading the costs and risks thereby

minimizing negative impacts.

Fourth – By entering a business joint venture, you’ll get

better access to

financial resources.

Fifth - By establishing a business joint venture, the

partners stave off

competition from other companies, and strengthen their

position in the industry.

How are business joint ventures created? Typically,

forging of joint ventures agreements are determined by the

following factors. The nature and the size of the planned

enterprise. The length of commitment – will it be for a

specific period? Or have the life of a corporation? Another

factor, concerns the identities of the participants and

regions in which their business operates. Lastly, the

commercial and financial goals of all the participants and

the method in which this shall settled.

Are there any negatives in establishing a business joint

venture? As long as all the terms and conditions of the

venture are carefully set out, there is no reason for it to

fail.

A business joint venture provides you all the benefits of

joining forces with other companies. Yet, you retain full

control over your company. The best of both worlds can be

found in a business joint venture.