Understanding when to start a joint venture and who to do it with is important. More about this listed below.

There's a long list of joint ventures that spans various sectors and businesses around the world, a few of which have culminated in the creation of the world's most successful companies. That said, there are different types of joint ventures and selecting the ideal one significantly depends upon the goals of the entities involved and the nature of their respective organisations. For example, project-based joint ventures are a type of partnership that combines two entities from various backgrounds to reach a common objective. This could be a JV between a business entity and an academic institution or short-term partnership between a business person and a government such as Farhad Azima and Ras Al Khaimah's joint venture. Vertical joint ventures are also another popular vehicle for growth as these combine 2 entities that co-exist in the same supply chain like buyers and suppliers, and they provide increased growth opportunities for both parties.

For decades, joint ventures in international business have actually culminated in equally helpful results, and entities such as Geely and Concordium's recent joint venture is a good example on this. There are many reasons why businesses enter joint ventures but potentially the most essential of which is to leverage resources and gain access to knowledge that one business may be missing. For instance, one business might have exceptional marketing and circulation channels however does not have a streamlined production center. By partnering with a business that has a well-established production process, both entities benefit considerably. Another reason JVs are popular is the truth that companies share costs and risks when starting a joint venture. This makes the partnership more appealing as both parties would share the cost of labour and marketing, and they both take advantage of lower production costs per unit by leveraging their capabilities and integrating knowledge.

Company growth is an ambitious goal that any entrepreneur thinks about at some time during their professional career, however, it can be a very difficult and pricey procedure. It is for these reasons that some business people choose joint ventures when attempting to get into brand-new markets and areas. Launching a world-class joint venture such as Telkom Indonesia and Telstra's joint venture can significantly increase the chances of success as partners pool their resources and connections in an attempt to maximise efficiency. For example, a company wanting to expand its distribution to brand-new markets and areas can benefit from partnering with local players. In this manner, it can gain from an already existing local distribution network, not to mention having access to knowledge and proficiency on the target market. Beyond this, policies in certain jurisdictions restrict access to foreign companies, indicating that a JV contract with a regional entity would be website the only method to gain admittance.