Joint Venture Your Way to the Top

Joint Venture Your Way to the Top
Joint ventures are a great way to team up with another
company or person who is looking to achieve similar goals.
By using your resources in a joint venture arrangement, you
can save time and money in achieving your dreams. Before
you set up your joint venture arrangement, decide what
exactly it is that you want to accomplish from the project.
Are you looking to access additional information and
resources, do you want to tap into new markets that your
potential joint venture partner is already tapped in to,
are you looking to extend your marketing reach? What is it
that you hope to accomplish? By having a defined target at
which to aim, you are more likely to hit the "bulls-eye"
and create a winning joint venture plan.

Joint venture vs. partnership: Benefits

Because the main difference between a joint venture and a
partnership is that a joint venture is normally temporary
or project based, there are tax advantages that can be
realized. First, each member of the joint venture retains
ownership of his or her property. Secondly, members of
joint ventures are taxed on the joint venture profits
according to whatever business structure has been
established for each business. Also, those participating
in a joint venture can choose to use as much or as little
of their Capital Cost Allowance (CCA) claim as they would
like.

Let's use an example of an inventor looking to bring an
innovative product to market. Normally, an inventor will
not have the resources and distribution channels needed to
mass-produce his product. Thinking creatively, the
inventor decides to research manufacturing companies with
capabilities he believes are needed to produce his product.
By joint venturing with the manufacturing company, the
inventor now has access to additional funds, production
resources, and distribution channels that could take months
or even years to develop on his own. The manufacturing
company has acquired a new product to provide to its
existing and potential customer base, thereby potentially
creating an additional stream of revenue. However, both
parties have retained their autonomy in regards to how the
profit share is utilized on behalf of each joint venture
entity.

Joint venturing your company

Suppose you don't have a great new invention to bring to
market. Say your company is service-oriented, providing
consulting services to the small business sector. Your
dilemma is reaching gaining greater market exposure to your
target market. How can you accomplish this without
spending an arm and a leg on advertising? How about joint
venturing with a bank or credit union that is currently
servicing your target market? They may be able to offer
your services as a resource that will help the businesses
they are financing to succeed. Naturally, the bank is
interested in the success of the businesses they're
funding, and a part of a successful business is a great
marketing strategy. You reach a broader target market, the
bank assists the businesses in which it has a vested
interest, and you both retain autonomy.

There are a myriad of joint venture opportunities
available. You can joint venture your way to the top if
you're willing to think outside the box, outline specific
goals for your joint venture agreement, and follow through
on the execution.

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Christian Fea is a Collaboration Marketing Strategist. He
empowers business owners to discover how to implement
Integration, Alliance, and Joint Ventures marketing tactics
to solve their specific business challenges. He
demonstrates how you can create your own Collaboration
Marketing Strategy to increase your new sales, conversation
rates, and repeat business. He can be reached at:
http://www.christianfea.com