Survival Tip: Harness the Power of Joint Ventures

Strength occurs in numbers. Nothing can be more powerful for economic survival than combining the resources of various companies through the power of joint ventures, co-branding and strategic alliances.

A joint venture or strategic alliance is a form of partnership where businesses come together to share knowledge, markets, and profits. It's typical for a small business to balk at the thought of sharing customers and revenue but the sum can be greater than the parts.

What can you gain from forming a joint venture or strategic alliance?

• access to larger markets and greater customer base
• reduced marketing expenses and risks
• tap others with better core strengths

While a joint venture can reap many rewards for small business, one has to take the necessary cautions by doing due diligence and creating a joint venture agreement.