Business is all about survival of the fittest. Running a smart business, on the other hand, is to grow when others fight to survive. What do you do when competition intensifies and you need to expand your customer base? Join hands, we say!

A Joint Venture, popularly known as a 'JV', is a strategic partnership entered into between two or more firms to take advantage of opportunities, share in profits and distribute risks. But like they say, every coin has two sides. If you are already tempted to pursue a Joint Venture, be careful to find out more than just the bare minimum.

Why a Joint Venture? Entering into a Joint Venture, preferably with more experienced firms, can help your business in several ways. You can access new markets without having to start from scratch, reach new customers, adopt technologies rather than develop them, diversify risks..…. the list is endless. An alliance with established market players can boost the credibility of startups considerably, help them realize profits faster and deal with competition more resourcefully.

Things to remember: Not all alliances can give you the results you desire; make sure that you and your partner share the same wavelength when it comes to business. While a Joint Venture can open doors to several opportunities, it is essential that you decide what you want from the venture; is it new customers, access to better technology or human resources? Then, zero in on prospective partners. See to it that your goals and the expectations of prospective partners match. Once the legalities are through and the Joint Venture is officially on, comes the difficult part - executing the grand plan.

How to go about it? More often than not, the Joint Venture is a new identity and hence it becomes important to outline policies and a corporate culture for it. A whole new business plan might be called for. Managing the human capital could be tricky, but do all you can to quell the insecurities about transformation at the workplace. Communicate any change in the rules, regulations and leadership, effectively.

The other side: A successful Joint Venture calls for team work. If sparks start flying after the first meeting, then the Joint Venture could be as good as dead! This means losses and a great amount of time down the drain. Other than this, partners become liable for each other's mistakes. Profits will have to be shared, and many times, making decisions might seem difficult, if not impossible. Partnerships of this kind are often short lived and could come to an abrupt end.

Since most Joint Ventures are new undertakings, one is almost certain to need a new business plan. Consult a business architect for help with the same. "Strategic Partnerships: An Entrepreneur's Guide to Joint Ventures and Alliances" by Robert Wallace, could be a useful resource for startups.

A Joint Venture could be the ideal way to grow faster in a competitive environment; however a clear understanding of the common ground between partners is important for the survival of the entity. Set well defined goals to avoid confusion at a later stage.