Jv is a foresight process in which two or more parties come together in order to expand their business wings and profit and in order to minimize the risk involved in performing business activities.
Jv is not only a sharing idea of cost involved in a business but sharp investors use this as a doubling tool of expertise and profit because they choose their co-venture partner in such a way that he will not only add money in his business but also use his expertise and knowledge to take this venture forward.
Steps to JV:-
- First identify the objective of JV.
- Write down the outcome of JV.
- Analyze the target segment where you want to reach.
- Identify the potential partner who already in the same segment.
- Than DO SWOT analysis of those prospects and firm.
- Determine the type of your joint venture
- Design your expansion plan and budget.
Then finally move ahead for final negotiation or discussion.