Monday, May 25, 2009

Why Joint Ventures Are Important To Your Business

This article is designed to assist businesses and entrepreneurs improve their profitability during good or bad economic times. It has to do with joint ventures/strategic alliances and how they work.
One of the keys to developing the proper mindset is to understand incremental profit. J. Paul Getty said, "I would rather have one percent of 100 men's efforts than 100% of my own." So many people want to have the whole entire loaf for themselves rather than teaming up with others and getting 40 or 50 percent of the loaf but do this over and over again. Understanding this concept will allow you to create much more profit for you over the long run than trying to keep everything yourself.
What is a key to a joint venture? Developing a rapport and the ability to work with someone who has a number of people they already serve and teaming up with them. By piggybacking on another businesses' goodwill with their clients, you can work out a split so both businesses benefit.
It is win-win for each business as the one with the clients can increase their profit, his clients get access to another quality good or service and the new business gains clients and profit!

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