If you are a small business owner or thinking of becoming one, you have probably heard the term "joint venture" or JV. All this means is a partnership between businesses that have specific interests in mind, such as combining their strengths or sharing their customers. When two parties enter into a joint venture, they are actually creating a new business entity entirely.

The term "joint venture" actually refers to the reason behind the partnership, and not the partnership or new entity at all. There is no legal requirement for entering a joint venture -- anyone can do it. Individuals, limited licensing companies (LLCs), corporations, farmers' markets, co-ops and any organization can form a JV. Similarly, the new company created by the joint venture can be an organization, corporation or other legal entity.

Joint ventures are quite common in large businesses. They're often necessary for the purpose of entering into certain markets. Some countries require that foreign companies enter into a joint venture with a company from within the country in order to do business there. And, even when a joint venture isn't required, having one partner located in the geographical region offers a local presence and helps keep a better eye on the market there.

Even where it's not required, joint ventures offer fantastic benefits when they're not taken too lightly. One reason many small businesses enter into joint ventures is to take advantage of the products, skill sets or customer base of another company.

Let's take an example: You run a computer sales store but don't offer computer repair services. Your customers continue to ask about these services, and you repeatedly turn them away, recommending the guy who owns the little repair shop down the street. You realize that you could both benefit by creating a business partnership, and he agrees to your joint venture idea. You both benefit. You no longer turn customers away, and he gets all the business plus a cut of the profits.

Although joint ventures offer a great many benefits to all parties involved, they can be disastrous if they're taken too lightly. Small businesses that are able to successfully enter into joint ventures generally possess five common characteristics: 1) Creativity; 2) Persistence; 3) Visualization skills; 4) Negotiation skills; 5) Client relationship skills.

Creativity is one of the most important of these characteristics. You must be able to think outside the box to see many different ways your business could benefit from a joint venture -- and all the different joint ventures your business could fit into. There are possibilities for just about anyone who's interested -- provided that you know where and how to look for them. It's also important to be creative when explaining your plan to a potential partner -- you don't want them falling asleep on you.

Persistence will come in especially handy as you begin to explain your ideas to those you'd like to partner with. This is especially true if you're approaching other small businesses who may not understand how joint ventures work.

Visualization is important because you've got to be able to see how your end of the joint venture will fit together with your partner's end. The two parts must lock together like pieces of a puzzle to form one cohesive picture. If you can't see that picture, your venture will have very little chance of succeeding.

When you're putting together your JV agreement and business plan, you'll spend a lot of time negotiating with your partner. You'll want to make sure you're getting exactly what you want out of the deal, and that means sometimes you'll have to be pretty hard-nosed. If you have difficulty entering into professional negotiations, forming a strong joint venture that provides the best benefits for you will be very difficult.

Finally, once your joint venture is under way, you're going to have to spend some time nurturing your client relationships. This is especially true if you're the partner bringing in the clients. Your existing clients may not understand the joint venture and may fear that their level of service will change. To ensure your client relationships stay strong, you'll need to stay in contact with your customers and work at understanding their needs. This way, you'll not only retain your customers, but you'll also know which offers, products and services they'll respond to.

Joint ventures offer great opportunities for those who enter into them thoughtfully, carefully and properly. If you do your research and make sure to uphold your end of the bargain, it's likely you and your partner will find great success.