Starting a small business can seem overwhelming sometimes, but many people dream of doing it because it offers financial and personal freedom. The main reason that starting a small business can be stressful for some people is that they lack the capital or expertise, even if they have a great business idea. For this reason, the fastest way to start a small business can be the leading marketing tool for many businesses – a joint venture or strategic alliance.
The reason that starting a small business can be difficult for some people is a lack of start-up capital. Forming a strategic alliance with another business or partner that has money to invest can solve this problem. Sometimes, lack of expertise and technology can make starting a small business difficult, but if you partner with the right business, you can enjoy the benefits of their talent and technology, while they can share in your profits.
Another consideration for a joint venture agreement is that you can enjoy better distribution channels and share in advertising expense, while they are able to venture into new product development to grow their profits at the same time. Toshiba is a company that believes in joint ventures on many of their new technologies. They partner with a variety of businesses and individuals for a mutually better profitability. When you are starting a small business, this is something to consider.
Joint Venture (effectively executed JVs) are the “best-kept secret” and most powerful way to grow your business in the shortest period of time (when you approach with the correct strategy… without the correct strategy you make no money. That is why most people who simply “network” really never make any money).
Simply put, a JV is a way of working together with others that will benefit all parties involved.
It isn’t difficult to form these strategic alliances to launch your new product. You don’t even need to have a product, you can just have the exclusive rights to market one or have the expertise to help another business launch or market their new products when starting a small business. No matter what type of joint ventures you look into, starting a small business can be easier when you consider the advantages of forming a strategic alliance with a business partner that will compliment your business idea and make you both more profitable together than on your own.
When you are starting a small business and are looking for the fast track to get it launched, considering a joint venture or strategic alliance is a good way to go. The reason for this is simple: small hinges can swing a large door and the same is true of forming a partnership with a complimentary business or partner that can help you both become more profitable.
Since most joint venture agreements are a 5 to 7 year agreement, this is the time you need to become financially stable when starting a small business, no matter what it is. In that amount of time, both partners can become hugely profitable and may decide to continue a joint venture into a number of other areas. Whether you are sharing resources and talent, email lists and advertising or just a good business idea, it is a great way of starting a small business.
|Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Over the past 13 years NCP has assisted more than 5,500 business owners form LLCs and corporations to get their business off to a fast start!
Go to http://www.TheUltimateJointVentureBootCamp.com to find out how you can master this ultimate form of leverage in Las Vegas on January 28, 29 and 30, 2011!