| Before you set up your joint venture arrangement, | | | | and distribution channels that could take months or |
| decide what exactly it is that you want to accomplish | | | | even years to develop on his own. The |
| from the project. Are you looking to access additional | | | | manufacturing company has acquired a new product |
| information and resources, do you want to tap into | | | | to provide to its existing and potential customer |
| new markets that your potential joint venture | | | | base, thereby potentially creating an additional stream |
| partner is already tapped in to, are you looking to | | | | of revenue. However, both parties have retained |
| extend your marketing reach? What is it that you | | | | their autonomy in regards to how the profit share is |
| hope to accomplish? By having a defined target at | | | | utilized on behalf of each joint venture entity. |
| which to aim, you are more likely to hit the | | | | Joint venturing your company |
| "bulls-eye" and create a winning joint venture plan. | | | | Suppose you don't have a great new invention to |
| Because the main difference between a joint venture | | | | bring to market. Say your company is |
| and a partnership is that a joint venture is normally | | | | service-oriented, providing consulting services to the |
| temporary or project based, there are tax | | | | small business sector. Your dilemma is reaching gaining |
| advantages that can be realized. First, each member | | | | greater market exposure to your target market. |
| of the joint venture retains ownership of his or her | | | | How can you accomplish this without spending an |
| property. Secondly, members of joint ventures are | | | | arm and a leg on advertising? How about joint |
| taxed on the joint venture profits according to | | | | venturing with a bank or credit union that is currently |
| whatever business structure has been established for | | | | servicing your target market? They may be able to |
| each business. Also, those participating in a joint | | | | offer your services as a resource that will help the |
| venture can choose to use as much or as little of | | | | businesses they are financing to succeed. Naturally, |
| their Capital Cost Allowance (CCA) claim as they | | | | the bank is interested in the success of the |
| would like. | | | | businesses they're funding, and a part of a successful |
| Let's use an example of an inventor looking to bring | | | | business is a great marketing strategy. You reach a |
| an innovative product to market. Normally, an | | | | broader target market, the bank assists the |
| inventor will not have the resources and distribution | | | | businesses in which it has a vested interest, and you |
| channels needed to mass-produce his product. | | | | both retain autonomy. |
| Thinking creatively, the inventor decides to research | | | | There are a myriad of joint venture opportunities |
| manufacturing companies with capabilities he believes | | | | available. You can joint venture your way to the top |
| are needed to produce his product. By joint venturing | | | | if you're willing to think outside the box, outline |
| with the manufacturing company, the inventor now | | | | specific goals for your joint venture agreement, and |
| has access to additional funds, production resources, | | | | follow through on the execution. |