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Joint Ventures

Why Form a Joint Venture?

written by Jean Murray

I want to share this article with you, because it’s the fastest way to get new clients/customers without spending any money on advertising.

Businesses form joint ventures for several reasons:

  • To combine resources. A bigger entity may have more clout in an industry or more resources to ensure the success of a venture.
  • To combine expertise. In technical businesses, one company might have expertise in one part of a venture while the second company might have expertise in another part. For example, Company A might be good at creating software, while Company B has experience creating the hardware that’s needed for a venture.
  • To save money. Two companies might consider a joint venture to save money on advertising, maybe at a trade show or in a trade publication.