A joint venture (JV) is the entity created when two businesses join in a partnership for specific, often strategic, reasons. JVs can be a fantastic way for small businesses to increase their customer bases, and for businesses to share their skill sets to offer new or better products and services. However, in order for a JV to be successful, it's essential for both parties to take the agreement very seriously and do all of the homework involved.

If you rush into a joint venture, at best you will be wasting time and money -- or at worst you could destroy the business you've worked hard to create. To avoid these pitfalls, you must choose the right partner, create a shared vision and make sure you stick to an organized business plan.

Choosing who you want to partner with is the most important part of setting out on a path toward a successful joint venture. Your partner must be someone you trust -- or ideally a person or organization you know very well. There are plenty of slimy smooth-talkers out there who would be more than willing to take your money and run. If they're promising you fame and fortune overnight, it's probably too good to be true.

Take the time to research your potential partner. Look into their past business practices, ask for references and proof of past successes. Make sure they can deliver what they're offering.

While it's important that you know your business partner well, it may also be a bad thing to know them too well. Joint ventures with family members or close friends may not be wise. For one thing, if things go bad, you run the risk of losing your business and your personal relationship. In addition, because you know the person so well, you may be tempted to skip important steps, like creating a business plan and drawing up a formal agreement. As a result, in the end, you may find that you didn't have the same goals or understanding at all.

You'll want to look for a good balance in a partner -- someone you know well enough to trust, but not so well that your personal relationship will get in the way. Your partner should possess a skill set that will compliment your own. For example, perhaps you're really great at marketing products, but you lack organizational skills. Look for a partner whose organizational skills can make up for your shortcomings and who, perhaps, needs assistance with marketing.

Making sure that both partners share a similar vision is also very important. In order to reach a common goal, both parties must define it and see the path to reaching that goal. If you and your partner have disparate ideas about your goals, it's not likely your venture will last very long. You can't reach two different goals if they are in direct conflict with each other.

Good organization can help ensure that your and your partner's visions match. To begin, create a business plan that clearly defines what you want to achieve and when you expect to achieve it. The plan also explains who will bring which assets and skills to the table.

In addition to a business plan, a formal agreement is necessary. The agreement serves as a contract between you and your partner. It spells out exactly what each partner's responsibility in the JV is.

Establishing a successful JV also requires that you organize your time. Don't spread yourself too thin. Understand that a new business takes a lot of time and energy. Don't expect to be able to focus on two projects at the same time. Choose a time in your life when you have enough time, support, and resources to really focus on the JV.

With the right partner, shared goals, and clear organization, a joint venture can be one of the best means of increasing your company's size, skills, and customer base. Just make sure you spend time learning everything you can about how the joint venture will work for you, who your partner is, and how you can reach your goals together.

Justin Bryce has been a contributing author for this website
and is an acknowledged expert in the field of Joint Ventures.
He can be found on the Internet at this website:
http://www.lazy-internet-marketing.com