Like any business that expects to succeed, your joint venture needs to have a plan – a business plan allows you and your JV partner to form a blueprint of your success and a strategy for achieving it. If you are forming a new JV, or have an existing JV without a business plan, here’s how to get one started right away.
A business plan doesn’t have to be a novel-length document. It could simply be a few pages that describe you and your JV partner, why you’re in business, and how you expect to achieve success. However, a more complicated JV that may require outside financing may require a more detailed business plan with professional biographies, marketing strategies, and financial projections.
Whatever the length and detail of your joint venture, here are the basic elements that all business plans need to have:
Executive Summary
Though this section is at the front, it should be written last after all the details have been thoroughly completed. The Executive Summary should be written meticulously and concisely and serves as an intro to the business plan. It should be about a few paragraphs, or no more than a few pages long, and contain just the fundamental nuggets of the rest of the document. Think of the summary as a “sneak preview” that will tantalize the reader into the rest of the document.
Company Description
This section should discuss your vision statement, the people, and business profile. It should contain details about you and your JV partner and include a bio your experiences and expertise. You will also want to talk about what why the JV is in business and what you plan to sell.
More detail in this section could include:
– Organization & Management
– Product or Service Line
– Management Details
Market Strategies
You need to identify who your market is and how you will market to them. Discuss why your product or service fills an identified and unsaturated niche. Show details of market research performed. And be specific about your marketing strategies and goals, as well as how you and your JV partner will work together to tap into potential customers.
Competitive Analysis
Your JV is not the only one doing business in your niche. Include this section so you clearly identify who your competition is and why your product or service offering stands apart from the rest.
Financial Projections
This section is essential if your JV is looking for outside financing, such as loans or investors. Even if you do not show the plan to anyone else, it’s a good idea for you and your JV partner to formulate financial projections showing your expected cash outflows and anticipated revenues. A financial expert who can develop accurate projections based on dependable research should complete a detailed financial projection.
With a dependable business plan in hand, you and your JV partner have a reliable blueprint for achieving success. If you don’t already have one, get together with your JV partner and discuss forming a plan right away. It will help lead you down the road to a thriving JV!
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 Joint Venture Marketing Wealth Report.