The recession that is currently plaguing the UK brings with it opportunities to be innovative, creative and to ultimately make new businesses work in the specific financial environment the country finds itself in right now.

While some industries and markets are understandably suffering significantly in the midst of the economic downturn, there are others that provide wonderful chances to succeed. As such, it could be the perfect time to start thinking about launching your own business. However, rather than diving in headfirst all alone, it can pay to set up a joint venture with a friend, family member, associate or simply somebody with a similar business plan to your own.

Of course, the question you are sure to be asking yourself is why should you give up 100 per cent control of your fledgling business and share the rewards with somebody else? Well, when you think about it, there are numerous advantages to pairing up compared with going it alone.

Firstly, the capital you have available to you as a duo will be much larger. Rather than relying on your own savings and funds, you will have somebody else to contribute. The result of this is that you are in a position to spend more heavily to get things up and running. Whether you want to buy new equipment, pay staff or splash out on an advertising campaign, it all costs money and having as much as possible during the expensive start-up period is a massive bonus.

On the back of this, you will incur less risk when starting a joint venture as opposed to a solo business. Understandably, the profit will be halved between you and your business partner, but on the other hand you do not have as much to lose.

A particularly good idea can be to team up with somebody or a business from another sector, ideally another country. This will hugely increase your marketing potential and immediate audience, as you can launch in more than one area simultaneously.

By working with your partner, you will also find you benefit from his or her ideas and knowledge. Should you set up a business on your own, you might become set in your ways. It may come as a shock, but your plan is not always the best one, so having somebody else to run things past who contribute their own suggestions is a shrewd move.

You might even find that your talents lie in different areas. While one of you might be talented when it comes to book-keeping, the other could well be an advertising guru. Straight away, these are vital positions that you can each fill rather than having to employ somebody else.

No option is likely to tick every single box for you, but as a relatively low-risk and beneficial plan, thinking about a joint venture is surely a good move. So make your first steps towards a joint venture today and benefit from its numerous and substantial advantages sooner than you think.

For more information, you can acquire our Joint Venture Agreement, bringing you one step closer to setting up a business in partnership with another person or company.

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Published on: July 31, 2012