A joint venture is when two or more businesses pool their resources and expertise to achieve a particular goal. They also share the risks and rewards of the enterprise.
Businesses may form a joint venture for many reasons, including business expansion, new product development or moving into new markets, especially overseas.
Such strategic partnerships potentially offer unique benefits. They can boost your resources, your capacity and technical expertise, and open up markets and distribution channels. However, building the right relationship can be challenging and may require significant time and effort.
You can use our joint venture checklist to help you find the right partner, decide on a legal structure and plan an exit strategy for when your partnership ends.