Starting a business is risky. Not everyone survives that easily. And those who do, first need to hurdle many challenges before finally being able pick up some speed. According to studies, 95% of businesses created during the financial year fail. Those who survive their first year, fail by their 3rd, 4th, or 5th year to competition and financial mismanagement. The lack of capital or the misuse of capital is highlighted as a key precursor to most business failures and it is also the most inevitable. But what people do not know is that they can soften the impact of this predicament by considering a joint venture business early on. Scott Letourneau, an experienced entrepreneur and CEO, believes that joint ventures are the most powerful leverage anyone can use to grow their enterprise.
As we all know, there are a number of reasons behind the creation of a business. Some aspiring entrepreneurs are ambitious and want to establish an enterprise in order to make a difference and help people. Others just want to leave the corporate world and have their own company so they could earn more money, get more time, and exercise more freedom. Regardless of the intentions, the application of the techniques of joint ventures in business allows entrepreneurs to maximize their potential in order to succeed with a fully competent, fully realized and winning entrepreneurship experience.
The effectiveness of applying joint ventures is strongly dependent on how well entrepreneurs follow the rules of the agreement. As a foundation, those interested should accurately begin this master plan in accordance to the standards. As with all business agreements, a joint venture business begins when there is a need or an opportunity presented. This need can be observed from the environment, from a particular market you have been exposed to or from people that you know or businesses that you’ve dealt with before. If you see that there is an opportunity for you to serve something of value to some entity, whether an individual or corporation, and equivalently receive reciprocation, then you have a viable basis for a joint venture.
But whom do you seek when you finally have a plan in the works? Spike Humer, a joint venture mogul, suggests that you approach people you know and people you’ve built relationships with when you explore a joint venture business. According to him, relationships are the valuable commodities of this period. You can do anything or have anything if you tap into the right relationships. But then again, you can also partner up with people you can easily approach or people whom you have transactions with.
This is where networking comes in to play. Whether through social media or by talking to people you know and getting personal referrals, you are actually empowered to find suitable partners for a joint venture. The key to networking is being able to segment your connections. Identify which among your associations are well suited to your needs and present to them your ideas, hopefully to receive feedback on who they know that you should pair with. Once you’ve got this part settled, you’re about halfway through of the start up process for your joint venture business.