Joint Venture Kenya: The pros and cons of joint ventures
Just like any partnership or strategy, there are always benefits and risks involved. You cannot escape that because that’s part of the business. However, knowing about it can help you navigate the ins and outs of a joint venture.
When learning all about joint ventures, you’d also have to consider the pros and cons of it for your business. Don’t worry because we’ll help you out here at Joint Venture Kenya. Browse through the website to learn more about this.
The benefits of going into joint ventures
There are two sides to the coin when it comes to pros and cons. Let’s first focus on the positive side which is the benefits. Here are some of the good things that come out of joint ventures:
- First of all, your business would be able to penetrate markets, resources, individuals, capital and even technology that it would otherwise not have access to.
- Competition is reduced, especially if you’re working with a direct competitor or the supplier of one.
- Your business or company can easily accomplish a goal or project because there’s a separate entity helping you out with the needs that your company would struggle with. This can lead to an increase in profits and productivity.
- You can bypass time-consuming bureaucratic processes and requirements that the other involved parties already have met.
- There’s no need to completely combine organisations with the involved party just to make sure that the project is working smoothly.
The above-mentioned benefits can sometimes outweigh the negative side of a joint venture. After all, the drawbacks completely depend on how the two parties handle conflict.
The risks of going into joint ventures
On the other hand, there are plenty of risks in going into joint ventures. You have to be aware of the negative side that may otherwise hinder the processes and vision you have for the project.
Here are some risks and drawbacks to keep in mind when joining joint ventures:
- It may be difficult to work with other businesses since the two parties may have different directions in mind. You’ll have to sort out disputes that can hinder the process of the project.
- When things end up badly, you’ll be left with wasted time, effort, money and resources. Moreover, the whole project can end up as a failure, especially when two parties are not in agreement with one another.
- If you fail to create a separate entity for the joint venture, you’d end up opening your company to additional liability and other legal risks that would deplete your resources and finances.
These risks may seem major at first but these are all worst-case scenarios that probably won’t happen if you’re smart about the whole process.
Contact Joint Venture Kenya for more information!
Now that you know the benefits and risks of joint ventures, you’re now ready to face what lies ahead when you finally enter one here in Kenya. Don’t worry because we’ll guide you through the whole process so you can avoid any of the cons in the abovementioned section.
What are you waiting for? Contact our team through our official Kenyan channels. Whether it’s on our social media accounts, email addresses or even hotline numbers, one of our representatives will be happy to answer your queries and concerns. You’ll only have to wait for 2 to 3 business days for our response!