Leveraging basically means that you wisely use your power, no matter where the location may be. This totally describes joint ventures. It is a good thing that no one is a loser with a joint venture. If the members of a joint venture are not thrilled about what is going on, then the whole thing will fall apart. There isn’t incentive for a company to enter into a joint venture if they aren’t expecting something in return. But this rarely occurs because the other business realizes what will take place if the outcome is not good. Everything in a JV is negotiated, and corporations can spend months setting them up. But don’t think your small business can’t use this leverage because it’s there for you to take.
It’s easy to sump up joint ventures with a single word: leverage. If you study history you will see that leverage is used for all sorts of things. It is rare to find something that holds more power than leverage. The nature of JV’s includes leverage because each company is benefiting from the combined power of both for their own gains.
Your goal as you set up joint ventures is to gain as much leverage as humanly possible. If everything comes together the way that it should, that is when the work that leads up to the launch will pay off. The payoff, depending on the size of the businesses with which you have joined forces, can be as high as millions of dollars. If both the joint venture and the other company are large, you might want to get a lawyer. Hire a lawyer who deals with joint ventures. You should rethink your plans to get into a joint venture, if you cannot afford an attorney who specializes in them. Start with a smaller joint venture instead. Grow your business until you have the money to pay for a good attorney. Then you simply move up to larger and much greener pastures.
When you are new to the game, you have to learn how to make concessions. This is very normal and not unusual, but don’t let the other party take complete advantage of you. Because you are new to the game, the other party might have intentions of getting over on you. You must learn when and how to make fast decisions, as well as when to fold. Keep in mind that you should be a professional at all times and always remain in control of the situation. After doing a couple of joint ventures, you will have the confidence to do more. In addition, your skills will get much better with time.
You should be sure that one of your business goals for this year is to participate in at least one joint venture. This is doable, and the reason for it is you will never look at your business the same. Then, if you keep doing them, you won’t just make more in profits, you’ll expand your business at the very same time.