Improve Your Business with a Joint Venture Agreement
What is a Joint Venture?
A joint venture is when two or more organisations contribute their knowledge, resources and finances to gain a tactical and strategic edge in the market. The parties usually share a common goal and are similar businesses that pool together their resources for a project in order to achieve their objective.
Are you considering a particular lucrative project? A joint venture may be the right path for you.
Whether you’re lacking in expertise or experience in the property sector, or feel you aren’t equipped with the right information to make informed decisions; at Tic Finance we believe in exploring opportunities. Within our wide array of resources, our joint venture services allow us to support many different approaches to property projects at various scales.
Depending on the nature of your enquiry we’ll consider other types of business in other sectors too.
What are the Advantages of a Joint Venture?
How a Joint Venture Can Benefit Your Business:
It is often the case particularly when starting a new venture, that as a business owner you can feel a little lost. Not knowing which direction to take, or how exactly to promote success can be daunting. However, entering into a joint venture alongside an experienced and suitable company is a great choice to make. Not only can it help you share your expenses and investment, but it can also allow you to gain deeper knowledge of your project and its industry.
Here are just some of the general benefits of a joint venture:
- New market penetration
- New revenue streams
- Gain enhanced know-how
- Enhanced credibility
- Increased strength against competition
- Improved economies of scale
- Potential intellectual property gains
Different Types of Joint Venture
There are a few different types of joint venture, which can each offer something different to your business. Some joint venture examples include:
A short-term collaboration is ideal if you only require a joint venture for a specific project or limited time. This is a good option if you aren’t looking for a long-lasting business relationship. The majority of joint ventures are short-term, and here at Tic Finance we can help your proposed project reach its full potential with a short-term joint venture.
Limited-function Joint Ventures
Rather than a complete merge of businesses, a limited-function joint venture is based on co-operation or co-ordination between joint venture parties with a focused objective in mind.
Full-Function Joint Ventures
A full-function joint venture entails the complete merge of two businesses and is designed on a much larger scale than a limited function joint venture. The intention of a full-function joint venture is a full merging of the businesses involved to create an autonomous economic entity, this often happens with a new company in exchange for shares.
Full-Scale Worldwide Mergers
This involves an international joint venture on a large scale often with the joining of international companies. As a result, a new company or subsidiary is created.
Potential Risks of a Joint Venture
Things to Consider:
- The new set of partners may have different objectives for the joint venture or the objectives may not be totally clear and communicated to all parties involved.
- Imbalance in the levels of expertise, investment or assets brought into the venture by the different parties may result in different priorities.
- Different management styles and cultures between parties may cause misunderstandings.
How We Can Help with a Joint Venture:
- Pick up the phone for a friendly chat with us.
- One of our team members will assess your enquiry and potentially arrange an appointment to meet at our office for a free consultation.
- We’ll continue to discuss the aspects of your proposal and our plans to help you achieve your goals with a joint venture.
- Once we’re confident we can invest, we will propose a bespoke offer presenting mutual and fair benefits.
- If both parties are happy we will come to an agreement and begin the venture.
Why You Should Choose Us
- We’ve been assisting others for over 10 years.
- We’re open 7 days a week and passionate about what we do.
- We proudly boast an expert team of financial professionals who can provide their industry knowledge and expertise and apply it to your business with a ‘joint venture’
- No project is too big for us to consider.
Our Core Values:
- Client Focus
- Being Dependable
- Working Together
- Upfront Honesty
If you’re interested in improving your prospects and gaining expert advice, support and guidance with a joint venture; then please get in touch now!
Our team are available 24/7, 7 days a week.