Thus, increasing your business’s credibility. Your chances for success are greater due to your joint venture partner. Joint Ventures Have Increased Success Rate.

You may be able to sell the asset to your joint venture partner. As a result, you can sell thoseĪssets once the project has been completed. Venture will specify who owns what assets. Reach an impasse then know that you have a way out of the relationship. Possible, it is best to stick it out until the project is completed.

Have ways that a business partner can end the relationship. In addition, your business exposure will be less since because it will only cover a portion of the products or services that your business offers. This is a great way to test relationships with potential partners. The Joint Venture will expire after the contract has been completed and all warranties have expired. Remember that the Joint Venture is not a long-term commitment. Your investment in the project will be less than if you elected to tackle the project by yourself. This allows each party to limit their exposure. Profits & Risks Are SharedĮach JV partner will share the profits or losses as well as the risks associated with the project. This is not a long-term commitment like an equity investor or partner. Once the project is completed the relationship will end. Temporary RelationshipĪ joint venture is a temporary relationship. In addition, to the added capital and equipment that can be used on the project. Your JV partner may have specialized technology and staff that you know have access too. If your business is not as established as your Joint Venture partner this allows you access to their resources. The joint venture allows both parties access to each other’s resources. Next, we will look at the second advantage. Resulting in a better solution to the government’s problem than each party could have accomplished individually. This allows both companies to brainstorm on the government solicitation together. The first advantage is the unique insights and expertise that your business partner brings to the table. Next, we will look at the advantages of joint ventures. Before you venture down this path let’s look at the 12 advantages and disadvantages of Joint Ventures. Especially if your business lacks the resources, capital, and marketing knowledge to make it happen. What are the Advantages and Disadvantages of Joint Ventures?Īs a government contractor, you realize that teaming with a business partner can be a great way to capitalize on Government Contracting opportunities. 12 Advantages & Disadvantages of Joint Venturesįind out the 12 advantages and disadvantages of joint ventures.

Disadvantages of joint venture