Joint ventures are a popular way to build small businesses today, but unfortunately, some companies enter into a joint venture that doesn’t produce the way they had hoped. All successful joint ventures begin with a plan, and by doing your homework and taking the time to set up it up properly, you can greatly increase your odds for success. This article will provide five ways to maximize the value of your new JV.
Choose Wisely
The first step in ensuring its success is to choose your partner wisely. The company should be in a related industry with a similar target market, without directly competing with your goods and services. It should also bring unique assets to the table that will compliment your company’s assets perfectly.
Write a Contract
Once you have a partner and a general agreement, get it in writing. A formal contract protects the interests of all parties involved in the joint venture and ensures that everyone does their part to make sure the agreement is a success. There are plenty of online templates for joint venture contracts, but you can also consult with an attorney that specializes in such agreements.
Use Technology
There’s plenty of technology at your disposal to make the most of your marketing strategy, including eZine articles, autoresponders and backlinks. Learn everything you can about these online tools so you can market your joint venture as effectively as possible. Compare notes with your JV partner to determine his strengths in the advertising department and then lend your own expertise to the process to maximize your marketing strategy. If necessary, hire a consultant in Internet marketing to get advice and information about the best marketing options for your needs. The more you advertise your joint venture, the more successful it will be.
Stay in Touch
Like any professional relationship, your joint venture will need to be properly nurtured if it is to grow. Plan to meet with your JV partner on a regular basis, whether it’s monthly or quarterly. This gives you the opportunity to assess the current state of your partnership and brainstorm ideas to improve the process. It holds both partners accountable, so you can rest assured that each business fulfills its obligations to the agreement. This also gives you the chance to dissolve the relationship in a timely fashion if you determine it isn’t working after all.
Prepare Your Staff
A joint venture is designed to increase your customer base, which could mean busier days for your customer service representatives. Make sure your staff is ready to handle the extra load with proper scheduling and staffing. Offer additional training, if necessary, to empower employees to handle customer questions and complaints as efficiently as possible.
Joint ventures can be an effective way to boost your profits, if you use them wisely. By choosing the right partner, making the most of the marketing tools at your disposal and preparing your staff for increased customer load, your joint venture will be much more likely to meet your expectations for success.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.