joint venture marketing
A joint venture is a partnership where businesses come together and share knowledge, market information, and profits. Joint ventures come in all shapes and sizes. The good news for small business is that large companies see value in partnering with smaller companies due to the small company’s ability to maneuver quickly in the marketplace, while providing specialized expertise and unique market insight. A small company can be a valuable joint venture partner to a large corporation; so don’t be afraid to think big when you think joint venture.
Benefits of a Joint Venture
- A joint venture with a larger corporation can shorten your learning curve when it comes to developing new products and gathering market intelligence for strategic market expansion.
- A small business can also glean information regarding the implementation processes and procedures that will improve productivity. Learning from companies who have already been around the block a time or two can significantly save time and money for the small firm who is ready to grow and willing to listen to the expertise of a larger company.
- A joint venture can be a source of additional resources and capital for you. Not only does partnering with a larger more established company enhance your credibility, but it can also open doors to resources and funding that were previously unavailable.
One small company, who successfully partnered with industry giants, was Mello Smello. An unknown husband and wife team partnered their unknown company with 3M and Disney to create scratch and sniff stickers of Disney characters. The end result was a multi-million dollar business. Not only were there additional monetary resources, there were additional sales resources and distribution channels that would have taken years to develop if the husband and wife team had chosen to go it on their own.
Tapping into Joint Venture Resources
A significant resource that should not be overlooked as a benefit of a joint venture is the additional marketing resources that become available. Whether you’re a small business partnering with a larger company or a small business partnering with another small company, chances are you will have the opportunity to promote your product or service to a customer base that you were previously unable to access.
All business is essentially broken down to the cost of obtaining a paying customer. By tapping into your joint venture partner’s customer base, you dramatically shorten the customer solicitation cycle, which can translate to huge savings in advertising and marketing.
Not all joint ventures have to be multi-million dollar deals. Joint ventures between small businesses with similar or the same products and services can serve to free up much needed resources. For instance, say there’s a tradeshow in which you would like to participate, but the exhibit fee is a bit too much for your marketing budget. By forming a joint venture with another small business in a related or similar field, you can both save money and expand your potential market by jointly attending the tradeshow.
Look to create a joint venture that offers benefits to both parties, and you are sure to reap the rewards!
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