With current economic pressures, many businesses have struggled to survive the pressure. Hence a number of entrepreneurs decided to get into business partnerships or joint ventures to share responsibilities and capital. Teaming up can be a great way for small business to get in on business opportunities and it enables small businesses to grow and expand more quickly and efficiently.  However, entrepreneurs should be aware that there is a significant difference between business partnership and joint venture.

A joint venture is a temporary business agreement between two parties who agree to take advantage of each others' abilities to do something productive and earn profits from the business collectively. Sounds very similar to business partnership but the main difference is that the members of a joint venture are teaming together for a particular purpose or project. Whereas the members of a partnership are joining together to share a common vision and run a business towards a common goal. Partnership might be formed for a permanent purpose or a long term and it requires permanent registration.

Entering into a business alliance can turn out to be the best thing for you; conversely it may turn out into a complete disaster. Hence it is important to know your partner before entering any agreements.  The following are the questions to ask yourself to find out if you're compatible.

• Do you have a similar drive, values and similar work ethics?
• Do you have the same vision, ideas and aims about running the business?
• Can you both communicate well with one another in a nice, polite, respectful and comfortable manner?
• Do you really trust this person?

If you've decided to associate with a person you must avoid any potential problems by making sure duties and responsibilities of each partner are clearly stated in a legal document. This document should contain the division of labor including who'll be responsible for making purchases; how much capital will each contribute; your assets; how decisions will be made, profits will be shared, quarrels will be resolved; a buy-sell agreement; and who will be entitled to what if the partnership doesn't work out.

Involve a lawyer and an accountant from the outset to help form your partnership and to draw up legal agreements. Each partner should always check every document that requires a signature and never just sign a blank cheque. Take your time and bear in mind that "A friendship founded on business is a good deal better than a business founded on friendship." Cited: Business- Know-how, 2009.

Sources:

• Ezinearticles
• Business-know-how
• Businessowner
• Entrepreneurship
• thedtihttp://www.thedti.gov.za/startingabusiness/howtostartabusiness.htm