joint venture marketing
Everyone gets into a joint venture with high hopes that the business arrangement will work in their favor and boost their targeted customer base. However, not all joint ventures turn out to be a match made in heaven, and sometimes partners have to agree to dissolve the arrangement prior to their pre-stated deadline.
If you’re in the midst of a joint venture that doesn’t seem to be working the way it should, consider some of these factors that may help you diagnose the problem and determine whether your partnership is healthy enough to continue.
When you begin a joint venture, it is important to define your objectives for the partnership and make sure both parties agree on what the objectives are. However, if these change over the course of your agreement, you may find that each partner has different expectations for what they hope to gain from the arrangement. At this point, you’ll need to sit down together and hash out the differences. If you can’t, it may be time to find new partners who share your objectives.
In order for a joint venture to work, both partners need to feel that they are giving equal time and effort to the union. If one partner begins to feel like they are carrying most of the workload and responsibility, resentment will grow. If one partner is feeling overwhelmed, it’s time to determine what the commitments are, and if both partners are willing and able to live up to them. If not, it may be time to move on.
Before beginning a joint venture, it’s important to take the time to get to know and trust your partner. The rising popularity of these arrangements has opened the door for many interested only in making a quick buck, rather than building a successful business partnership.
If you do your homework up front, you will be less likely to have problems later on. However, if your partner is not turning out to provide the business opportunity he said he was, it may be time to cut your losses and find a higher caliber partner.
In some cases, a joint venture may begin to falter because one or more of the businesses involved finds itself in the midst of change. Perhaps the targeted market base has fluctuated and the two companies are not as compatible as they once were. Maybe you have found that your business would thrive if you changed location. If changes occur during the partnership, don’t be afraid to reassess your business agreement and see if it will still work with the new company model. If not, break free of the partnership so that both companies can find more complementary partners once again.
Joint ventures are usually designed for success, but sometimes the arrangements don’t go as planned. If you find yourself regretting your arrangement, it may be time to meet with your JV partner to determine if your agreement is still working for both of you.
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.