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What Is Joint Ventures

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What is a Joint Venture?
Joint ventures can take on many looks, but the basic gist is that two or more companies come together to pool their talents, resources and customer lists for the benefit of all. The joint venture allows you to share advertising dollars for a more effective campaign and gives you the opportunity to ride the coattails of a bigger, more established company in order to boost your reputation and build your customer base.
Most joint ventures take place between related companies that share a similar target market, but do not compete directly in the goods and services they offer.
Benefits of a Joint Venture
There are many reasons to consider jumping into a joint venture with another small business, including: * Access to a whole new target market through your JV partner * The ability to reach a larger market base through pooled resources * The opportunity to capitalize on the established reputation of a more experienced business * The sharing of risks, as well as resources, to make your advertising dollar stretch further * Access to resources you may not have had in the past, such as specific skills your JV partner brings to the table that you did not currently have in your own labor pool * Access to new markets and distribution networks increased capacity sharing of risks and costs with a partner access to greater resources, including specialized staff, technology and finance; * Growth without having to borrow funds or look for outside investors. You may be able to use your joint venture partner's customer database to market your product, or offer your partner's services and products to your existing customers. Joint venture partners also benefit from being able to join forces in purchasing, research and development; * Increased flexibility. For example, a joint venture can have a limited life span and only cover

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