Benefits of Joint Venture Partnership

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					?Before you set up your joint venture arrangement, decide what exactly it is that you
want to accomplish from the project. For more help visit to:.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.

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.

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.
For more help visit to: .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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posted:4/10/2011
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