You may have heard about the popularity of joint ventures today and how business owners are using them to build a targeted market base and increase profits. However, you aren’t completely sure whether your own business is ready to undertake this kind of partnership.
If you are feeling a tad apprehensive about the idea, consider these factors to determine whether it’s time for you to take the next step in your marketing efforts.
What is Your Strategy?
Before you set out to find a JV partner, consider your own business strategy. While joint ventures can fit the bill for many business owners, they aren’t the right fit for everyone.
When you take the time to define your own business goals, you can see whether a joint venture is an appropriate strategy. It also helps to know your goals beforehand to ensure you and your JV partner are on the same page in terms of what’s best for both businesses.
What can You Bring to the Table?
Evaluate the strengths and weaknesses of your own company. Any potential partner will want to know how your business will benefit theirs in the partnership you form.
Know what you have to offer before approaching any prospective partners. By defining your own business needs, you’re better prepared to approach potential partners.
Where is Your Customer Service?
When you implement a joint venture, the idea is to grow your customer base quickly. Make sure your staff is prepared to handle an increased customer flow before you set out. Service training and adequate resources to care for more customers should be in place prior to a marketing blitz; otherwise, you may only succeed in frustrating new customers who will never set foot in your business again.
Are You Ready to Sign?
Before you begin a partnership with another company, it’s important to familiarize yourself with the legal aspects of this type of business alliance. No joint venture should ever be considered “official” until a contract is drawn up and both partners have signed on the bottom-line.
Before you begin searching out prospective partners, educate yourself about the common legal issues facing joint ventures so you’re ready to address them as soon as you locate another business interested in partnering with you.
Joint ventures can be an excellent marketing tool that will give you plenty of bang for your advertising buck. They’ll allow you to team up with other businesses for the purpose of increasing your targeted customer base and bottom line. However, a little preparation goes a long way in ensuring you are fully prepared to embark on a new partnership and manage all of the benefits and possible issues that might accompany your agreement.
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.