joint venture marketing
Small business owners are in a constant improvement mode. One must improve business to make more profit, reduce expenses, and beat the competition – or face the fate of over half of all small business startups: failure and locked doors. One way business owners step up their improvement strategy is by forming a joint venture.
A JV is a powerful partnership whereby the strengths, knowledge, experience, and resources of two businesses combine forces for a specific business purpose. If you are interested in forming a JV, or have already formed a JV, what is your reason for success? Here are a few most popular considerations for forming a JV:
Of course, one of the main goals of any business is to make a profit. A JV is no exception. The combined forces of the JV partners work together to make more sales through strategic marketing of products or services, and they reap bigger profits than they would have made on their own.
Increased profits could translate from other strategies of a JV, such as reduced expenses. When JV partners both chip in for expenses such as marketing or research, their share of the workload is reduced, thus generating more profit potential.
Find New Market Channels
A JV strategy may not necessarily turn a profit. Some business owners may be looking to find bigger and better market channels. A strategic JV might be one where business owners simply share mailing lists, carry a free advertisement for the other business, or even share distributor information.
New market and distribution channels can help the single business owner expand his own business and find profit down the road. Don’t ignore the business growth potential of acquiring more customers through a JV partnership.
Develop New Technology
A JV may exist to perform research and development of a new product or service. Two smart business owners who have proprietary technology could combine resources to form a better product for consumers. A giant example is Sony Ericsson, a JV formed by Japan electronics leader, Sony, and Swedish telecommunications expert, Ericsson. They joined forces to share technology and marketing resources. They are one of the top global leaders in innovative mobile phone manufacturing.
Diversify the Business
A JV could simply be a means of diversifying products or services for a business owner. For instance, a printing company may join forces with an independent graphic designer to offer not just printing services, but design consultations as well on business logos, brochures, catalogs, etc. Never overlook the power of offering more for your customers.
A small business needs keen strategies to get past the statistics. One-third of new small businesses will close within two years. Just over half will fail in four years. It’s not enough to simply hang a shingle and cling to the hope of, “if I open, they will come”. Keep your business strategies brewing. And consider a JV to help not just for profit sake, but also for your own ultimate business success.
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.