joint venture marketing
A joint venture offers the opportunity to boost your profit margin quickly and effectively. However, deciding to create a JV and actually building a positive and strategic business alliance can be two very different things. If you are serious about developing joint ventures that get results, we have five skills you should cultivate to ensure your success.
The Ability to Network
You can’t have a joint venture until you find a prospective partner who is willing to say yes to your proposal. That’s where good networking skills come into play. You must be willing to meet with potential partners face to face through trade shows, development and training or other industry events. You must also learn to write a powerful proposal that is sure to get noticed and considered. When you have the networking skills down, you have made the first step toward a successful JV partnership.
The Art of Negotiation
Once you have the interest of a potential partner, it’s time for the negotiation games to begin. It’s important to understand the value of “give and take” in the negotiation process to ensure both businesses have equal interest and everyone is adequately protected. Effective negotiation will make all the difference between a JV that is allowed to flourish and one that falls flat before the ink on the contract is even dry.
The Willingness to be Flexible
As you enter into a joint venture, there are at least two businesses with an equal interest in making sure the partnership is as successful as possible. While you may enter into this process with a set view mind, your partner may have some very different ideas of how to succeed in your efforts.
By keeping an open mind and remaining flexible to the details, you are more likely to capitalize on the innovations and resources both companies bring to the table.
The Desire to Build Strong Client Relationships
Good relationships with your customers are another component of successful joint ventures. When you have positive relationships with current customers, you will be more likely to draw them to your JV partner’s goods and services as well. If you work to build relationships with new customers that find you as a result of the partnership, you’re also more apt to transform first-time shoppers to loyal clients who keep coming back for more.
The Knack for Resiliency
Not every prospective JV partner will say yes to your proposal, and not every partnership you enter into will prove to be successful. When you determine that JVs are one tool you want to use to build your own business, you must prepare yourself for the inevitable rejection and failure that may accompany your efforts. Those who continue to persevere in their endeavors will be the most likely to see the rewards over the long haul.
Joint ventures are a highly effective way to promote a business today, but they are not without their share of risk and pitfalls. To increase your odds of success, work to cultivate these characteristics within your own business model.
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.
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