Marketing The Spoils and Pitfalls of Joint Ventures
Joint venture actually refers to the reason for the partnership and not to the entity created by the joint venture. Anyone can enter into a joint venture agreement. The forming partners can be individuals, corporations, organizations, limited licensing companies (LLCs), or any combination of these. Likewise, the resulting entity can be an LLC, corporation, or any other legal structure.
Joint ventures are quite common in large businesses. They're often necessary for the purpose of entering into certain markets. Some countries require that foreign companies enter into a joint venture with a company from within the country in order to do business there. And, even when a joint venture isn't required, having one partner located in the geographical region offers a local presence and helps keep a better eye on the market there.
Even where it's not required, joint ventures offer fantastic benefits when they're not taken too lightly. One reason many small businesses enter into joint ventures is to take advantage of the products, skill sets or customer base of another company.
For example, let's say you have incredible computer repair skills. Your only problem is that you don't have much of a customer base and very little money to advertise. To help your business grow, you approach a local computer sales store that doesn't currently offer repair services to its clients. You propose a joint venture where the store refers its clients to you, and only you, for repairs. The benefits? You get a steady flow of business at no cost to you, and the store adds valuable repair services to its list of offerings to clients.
Joint ventures can be cause for celebration for all parties involved -- or they can be a huge disaster if you're not careful. Successful joint ventures have five common characteristics. They are: 1) Creativity; 2) Persistence; 3) Visualization skills; 4) Negotiation skills; 5) Client relationship skills.
Creativity is a key skill in successfully seeking out and developing joint ventures. You must be able to see all the ways that your business could fit into various joint ventures. There are joint venture possibilities for virtually anyone and any kind of business if you know where -- and how -- to look. Creativity is also important when you're explaining the benefits of a joint venture to a potential business partner.
Persistence is particularly important when you first approach your potential partners. Small businesses have a lot going on, and the owners can forget you if you're not careful. You might also have to explain what a joint venture is if they don't already know.
You must have good visualization skills because you have to be able to predict how your side of the JV will benefit your partner, and how the two sides will fit together. Think of it as a jigsaw puzzle. If you're forcing the pieces together, you need to find a better fit. No breaking out the saw, now.
When you're putting together your JV agreement and business plan, you'll spend a lot of time negotiating with your partner. You'll want to make sure you're getting exactly what you want out of the deal, and that means sometimes you'll have to be pretty hard-nosed. If you have difficulty entering into professional negotiations, forming a strong joint venture that provides the best benefits for you will be very difficult.
Once you have successfully entered into a joint venture, you will need to find and build a client list. If your partner is providing clients for you, you must be extra attentive to their needs and make sure you don't lose them for your partner. If you have clients, they might be wary of your new business and fear that your products or services are about to change or become more expensive. It's important to keep in close touch with them and explain the changes in detail.
If you properly research what it means to enter a joint venture, and look at all the different possibilities before choosing a partner, you are likely to succeed and reap great benefits for your efforts. The main thing is to be assertive, honest with your partner -- and most of all, to make it fun! Justin Bryce has been a contributing author for this website and is an acknowledged expert in the field of Joint Ventures. He can be found on the Internet at this website: http://www.lazy-internet-marketing.com
Related Tags: benefits, joint ventures, joint venture, joint venture information, joint venture opportunity, successful joint venture
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Is SEO Optimisation Important Today?
Those who have tried setting up their own websites know just how competitive the online market reall - How to Shop Fearlessly, Look For Bargains, And Save Time and Money on the Web?
With the advent of online shopping, going to outlets and discount shopping centers may become an act - Roll Up Stand Changing Vendor Booths
Most people have been to trade shows, home shows, state and county fairs and other places where ther - Achieving Your Advertising Goals With a Roll Up Stand
Advertising is a common function of a business. However, it requires creativity and hard work to ens - Trade Show Displays and Expos
Trade Shows and community business Expos provide a captive audience for your business, to get the wo - How to Make Sure Your Newsletters Are Sent Out on Time
There are three key elements to making sure your newsletter is delivered on time: People, planning, - Portable Displays - Trade Show Displays
Portable Displays are the best option for exhibitors when it comes to Trade Shows. Portable Displays - Banner Displays - a Great Portable Display
Banner Displays are considered one of the most portable displays when used for trade shows. They com - Small Business Reputation Management - Your Small Business Information Could be Wrong
Bad information could be out there circulating on the Internet this very minute about your business - Eight Guidelines For Writing Newsletters That Engage Your Readers and Build Your Business
Want to write newsletters that engage your readers and help to build community? Whether you are a sm
Most viewed articles in this category:
- Adsense Is Making Me Rich
I want to talk to you about the power of Google AdSense and how you can use it to generate not hundr - How to Increase Your Business Using the Esoteric Science of Radionics
As a small business owner, there are an amazing number of difficult skills I need to master so my bu - 14 Top Lead Generation Tips
According to former Harvard Business School professor David Maister, typical marketing practices are - More Marketing Dope
Direct marketing can make you very successful, but you’ve got to understand the basics. Here a - The State Of Paid-To-Surf Programs Today
What a difference a year can make. 12 months ago, auto surf programs were at their peak. More an - Should You Open Up An Ebay Store?
Ebay has provided some amazing opportunities for many people to earn online. This widely popular au - Is Adsense A Good Idea?
For many webmasters, Google AdSense has become a great revenue generator. Since the program pays th - The "Coat Of Arms" Revisited
Recently I listened to a interview with Mark Joyner and Gary Halbert about Gary's famous "Coat of Ar - Brand Loyalty
It's a challenge getting consumers to remain loyal to a particular brand. Unlike the good old days w - The Hottest Affiliate Ebooks Out in the Market Today!
Affiliate Project X is a great affiliate marketing ebook. Totaling only 50 pages you could have your