Any small business owner or entrepreneur can benefit by partnering or creating joint ventures with other small and large businesses. Collaboration with other businesses on promotions and projects offers a wealth of opportunities for both businesses to excel by expanding the pool of people available to work on a given task. It also generates shared goodwill among the participating business and opens the door for any businesses involved in joint ventures to attract new customers.
1. You Get More Help
When you partner with another business on a collaborative venture, both businesses gain from the addition of more staff. If your business seems to be struggling with a certain task, when you partner with another business, you have additional support that you can tap for assistance. Your business may be able to take over a task with which your partner business struggles, and your partner business may be able to take over a task that poses a problem for your business. This leads to:
2. Collaboration Puts Experts in Their Area of Expertise
When you collaborate on joint ventures with other businesses and have the ability to tap their staff and share your staff, it creates more opportunities for experts to work in their area of knowledge. When you work on a joint project with another business, if that business has a marketing guru on staff and your business has a networking guru, each expert can work in his or her area of expertise on the joint venture. Not only does this increase the chances of your project’s success, but it also enhances employee job satisfaction. When highly-skilled staff get to work in their area of expertise and enjoyment, they’re more likely to feel happier and more fulfilled in their work, which is also likely to increase their productivity and your company’s profitability.
3. Your Business Will Attract More Customers
Partnering with another business brings you free referral customers without your business having to do anything to attract them. By collaborating on a joint promotion or other venture, your name gets promoted by your partner business. Essentially, your business gets advertised for free to customers who are likely to be in your target market. Additionally, you generate a sense of trust among customers who already patronize your partner business. If they already trust and feel positively about the partner business, and then that business advertises their collaboration with your business, those customers develop positive feelings about your business simply through the association.
4. Both Business Attract New Customers
When you collaborate on a venture designed to increase business visibility, both businesses benefit. Through only one promotion or event, you both reach new potential customers.
5. You Generate Goodwill
When you work collaboratively with other businesses, you generate goodwill within that business. This in turn benefits your business in multiple ways. Your partner business may want to collaborate with you more frequently in the future, thereby increasing customer visibility for both of your companies. Additionally, your partner business may be more likely to offer you help in the future if you need it, since you’ve worked with them in the past. Moreover, employees of your partner business could turn into new customers of yours.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture and Referral Marketing firm. He exemplifies how to profit from Joint Venture and Referral relationships by creating profit centers with minimal risk and maximum profitability.
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