You can not get a Small Business Loan? Consider a Joint Venture Partner

A joint venture partner or strategic partner, is sometimes overlooked as a funding opportunity. What is a strategic partnership or joint venture? And 'when two companies combine efforts to achieve a goal that would be difficult for them to achieve individually.

For example, it is possible that the product and the other company's distribution system in place to reach potential customers. If you market the product in common, they both win. It is not necessary to finance the cost of reaching potential customers, the company can expand its range of products, and therefore the value to its customers, offering your product. The company does not have to cover the costs of research and development of a new product.

Another example: You have a product that requires injection molded plastic components that are produced from expensive specialized custom equipment. Normally a company that provides injection molded plastic components would impose a hefty fee to build the equipment to measure, and also to pay for each piece produced. A strategic partnership could mean that in exchange for not paying for equipment customized on the front, you will pay the plastics company a small fee, similar to a royalty on sales for a limited time. You win, because there is no need to invest money in equipment and plastics company wins by having a greater revenue stream to generate customized equipment.

Another example: The product has customers in different markets and can be used for different purposes. Let's say that it is a new type of applicator for creams, lotions, soaps, and drugs. Another company has a lotion to treat skin irritations available by prescription only. You sell the exclusive rights to use the product to apply to prescription lotions that company. Since you have several other important markets for your product, giving up one, the application of lotions prescription, will not have a significant effect on your future, and you get much needed money now. The other company now has a product that helps in its identification of the brand and sales.

A final example: You have a customer database that is able to sell your products. Do you offer a company that has similar, but non-competitive products to use the database in exchange for a percentage of sales generated.

To find a potential joint venture partners look at trade magazines for your ads. Search newspaper business as the Business Journal http://www.bizjournals.com. Look for companies that provide products or services to your company, or those in a market that would be appropriate for your products. Participation in trade fairs. And, of course, search the Web.

If you do not want to take a loan or selling part of your company to outside investors, a joint venture partner may be exactly what you need. You can grow your business, find new business, or address a new market without spending any money. It 's a win win situation for both you and your partner in the joint venture .......