A joint venture is a contractual arrangement by two or more parties that undertakes an economic activity that is subject to joint control.
The following are three types:
• Jointly controlled operations
• Jointly controlled assets
• Jointly controlled entities
Joint control exists only when the strategic and operating decisions relating to the economic activity require the unanimous consent of all parties sharing control.
A venturer recognizes its interest in a jointly controlled operation by recognizing in its financial statements the assets that it controls, the liabilities and expenses that it incurs, and its share of the income that it earns from the sale of goods or services by the joint venture.
A venturer recognizes its interest in jointly controlled assets on a proportional basis. It also recognizes any liabilities or expenses it incurs, its share of liabilities or expenses incurred jointly, and any income from the sale or use of its share of the output of the joint venture.
Since joint ventures are partnerships, businesses can join together to work on a project for a set period of time. Having joint ventures with other businesses can increase your chances of beating your competition, increase sales and increase your profits quickly.
Joint venture also allows you to save money when businesses share operating costs. This means that all the partners, including you, will share costs for maintaining the website, advertising and other expenses but you will save money because you are not the only one spending for it.
By being a partner, your joint venture partners can give you referrals from their clients. This can really increase your profit and sales. It can also increase your reputation and more people will buy from you. In turn, you will also have to refer your partner’s website. It is a give and take relationship.
Since all joint ventures partners share the workload, you can save valuable time and money for your ongoing projects. This means that you have more time for yourself and also, you will not be working alone. It also creates a sense of teamwork and dedication.
By doing joint ventures with other businesses, you can have a lot of information from other businesses and also, get those information for free from experts.
Joint ventures also allow you to subscribe in discussion groups, online forums, and newsgroups that deal with your target audience. This is great if you want to increase your targeted traffic, and also increases your reputation and credibility. By participating, you also create a long permanent relationship with your clients and partners.
To find joint ventures, try to do this by typing in keywords that matches the product you are selling, or at least related to it. Once the search engine has finished searching, find a potential joint venture partner to present the proposal to. If it doesn’t work out, click on another link of website given by the search engine results on the first two pages.
Another way to find joint ventures is through forums, discussion boards, and newsletters. There are many companies that offer websites with discussion boards. Try to find the contact details and try to contact them. Present your joint venture proposal to your potential partner.
The last thing you have to do to find a potential joint venture partner is through writing an article. Write an article about your products and include in your resource box the complete information regarding your business and also state that you are looking for joint venture partners. This would make website owners to seek you out and propose a joint venture partnership to you, instead of the other way around.
To make your partnership work, your business should have a common goal, you can figure this out in their website. Look at their goals and objectives.
Another way to make a joint venture work is through writing each other testimonials. Not only that it is a great marketing strategy but also creates a more personal relationship between your business and theirs.
Always create projects together, this way you can enhance your business’s professional relationship. This can lead to a stronger joint venture partnership.
These are just some of the ideas you should consider when you want to do a joint ventures with other companies.
