A A joint venture takes place when two parties come together to take on one project. In a joint venture, both parties are equally invested in the project in terms of money, time and efforts to build on the original concept. While joint ventures are generally small projects, major corporations also use this method in order to diversify. A joint venture can ensure the success in smaller projects for those that are just starting in the business world or for established corporations. Since the cost of starting new projects are generally high, a joint venture allows both parties to share the burden of the project, as well as the resulting profits.
Joint Venture (JV) Steps
1. Market survey with report.
2. Business matching with project plan.
3. Final business & financial planning.
4. Agreement (Letter of Intent).
5. Joint Venture (JV) agreement.
6. Project – long term support.