Considerations before diving into a joint venture — 5 insights

Megan Wood -   Print  |

If considering a joint venture, first think about various benefits and obstacles you'll find in your market, according to Diagnostic Imaging.

Here are five insights:


1. A major JV advantage is the ability to collaborate with other business partners to make decisions, and the entry into related businesses that previously had high barriers to entry.


2. Within a JV, you will share the financial responsibility with the other entity, sharing the risks and costs.


3. A partnership like a JV allows each partner to grasp resources they didn't previously possess.


4. Aligning cultures, management styles and incentives will prove as obstacles to creating a successful JV, however.


5. Disparities in commitment to project goals by either partner as well as poor tactical decisions by either party will harm the JV end goal.


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