Gaining the Edge by Partnering with Your Competition

When President Barack Obama won the 2006 election, he immediately went to his fiercest rival during the democratic primary with a job offer. Hilary Clinton was appointed Secretary of State, a powerful position that involved working with countries across the globe.

Many wondered how the two could form such a strategic alliance after slinging mud so venomously during the campaign. The answer was simple: President Obama understood the importance of transforming enemies into allies and then putting them into positions where he could keep a close eye on their subsequent moves.

You may not be running for president, but your company is in its own kind of fierce battle for customers that will go to the other guy if you don’t win them over first. Most business owners’ treat the competitor as the enemy, closely watching their every move and making strategic decisions based on what their competitors do.

If you’re a business owner in this situation right now, why not take a page out of President Obama’s playbook and transform that competitive business into an ally that provides benefits to your own business even while you are helping him?

Why Join Forces?

Most business owners will probably read this proposal and immediate discard it as contrary to everything they know about business. However, consider the potential rewards joint ventures with your competition might produce. Instead of constantly worrying about the customers your competitor is attracting, you can actually take some of that base for yourself as well as the sales and profits you stand to gain.

Trade concerns over what your competitor might be saying to customers about you for the confidence in knowing that the only information coming from the rival company is endorsements and referrals to your own establishment. Wouldn’t you sleep better at night?

Approaching Enemy Lines

Everyone knows that you don’t simply walk up to enemy lines unarmed and unprepared, so plan your attack before approaching your competitor about a potential joint venture.

First, look for competitors that do not sell an identical product to your own, but items that are related to yours that would attract a similar customer base. Do your research up front by learning what your potential partner’s strengths and weaknesses are and how your business could fill the gaps in their company plan.

Once you know how to approach your potential partner, plan a face-to-face meeting where you can sit down and present your joint venture proposal in a relaxed, non-confrontational environment. Offer a variety of options for your joint venture, including shared marketing tactics, endorsements and referrals and integration of products. Be prepared to be flexible with your ideas, in case your potential partner isn’t sold on your initial proposal. Once you determine the best structure for your joint venture, put the entire plan in writing to protect the interests of both parties.

Joint ventures are an excellent model of how transforming an enemy to an ally can be beneficial to both sides. By doing your homework and approaching a potential partner with care, you can both cash in on the agreement with additional customers, sales and a healthier bottom line for all.

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.

Beginning a Joint Venture with Limited Capital

A business needs exposure to grow, particularly if it is a small business just starting out in the industry. However, these small companies also tend to have limited advertising budgets, making it challenging to get their names out to the general public. Many business owners have turned to joint ventures to stretch their advertising dollars, but you may be unsure of how this approach can help, given your tight budget and recent foray into the field. We have tips to help you begin a successful joint venture, no matter how limiting your current financial situation might be.

Building a Business Brand

The first step in a successful marketing campaign is to build a familiar business branding that customers can easily identify. Joint ventures make this process much simpler by allowing newer businesses to piggyback on the names and reputations of more established companies. If customers are loyal to one brand, they will be more likely to purchase a brand associated with the original business.

You don’t need much initial capital to partner with bigger businesses; simply research the needs of the business you are interested in and find out what your company could bring to the table to make the joint venture partnership complete.

Pooling Resources

The best feature of online marketing is that it doesn’t cost a small fortune to use many of the effective tools at your disposable. The cost of Internet marketing can also be cut exponentially by pooling resources with other companies involved in your joint venture.

While one partner can effectively split the cost of marketing with your business, those with truly limited advertising dollars can sign on with more than one JV partner to reduce marketing costs even further. This approach offers the biggest bang for your advertising dollar by granting you maximum exposure to potential customers with little up-front costs involved.

Finding Cheap Tools

Online marketing offers a virtual plethora of advertising options, which range in cost from very pricey consultants to free tools you can easily learn to use on your own. Social marketing outlets like Facebook and LinkedIn are excellent options for expanding your company exposure with little or no cost to your business. Creating a blog also doesn’t cost much money, but can be a good way to establish yourself as an expert in your industry and market your company to potential customers.

You might also find that your JV partners have experience with particular advertising tools and are prepared to share their knowledge with you, especially if you can return the favor with expertise of your own in a different area.

Joint ventures are an effective marketing method, whether you have a little or a lot of capital to bring to the table. Research potential partners before you approach them to find out how your knowledge or resources could complement their own business offerings. Learn to use online marketing tools cheaply and effectively to enhance your public exposure. With a few handpicked JV partners at your side, your online marketing efforts are sure to bring a good value for your initial advertising investment.

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.

Tips for Successful Joint Venture Negotiations

Because joint ventures involve more than one business at a time, it pays to learn how to play nicely with others before embarking on your first JV partnership. The negotiation fun begins when you find a prospective partner to draw into your proposal and ends when you draw up a solid contract with the business. We have negotiation tips that will help the process flow as smoothly as possible.

Preparation

This step is important, whether you are approaching a prospective partner for the very first time or working out a contract that benefits both parties. From the very beginning, it is important to do your homework about prospective JV partners, ranging from the products they sell to the types of clientele with whom they typically work.  Learn a bit about their bottom line as well, including their possible profit margins, unique challenges and available resources. Knowing your JV partner well will benefit you in wooing new partners, as well as drawing up a contract that is mutually beneficial.

Providing Information

In addition to learning everything you can about your prospective partner, it’s important to be prepared to offer the key information about your own business clearly and concisely. Determine how your partner might benefit from working with your business and outline those benefits precisely in your original proposal. List the needs your business has and the way a joint venture will meet those needs so you can maintain consistent priorities throughout the negotiation process.

Benefits vs. Risks

When embarking on a joint venture, write down a list of all the benefits each partner stands to gain, as well as any risks that might be undertaken. Risks should be reduced to a minimum throughout the negotiation process, so that both parties are comfortable with the arrangement. Leveraging current resources, rather than creating new ones can do this. Put benefits into writing, so each JV partner has clear expectations and possible recourse if expectations are not met.

Writing a Contract

All good negotiations begin and end with a comprehensive contract that protects the interests of all partners. The contract should include the overall purpose of the joint venture, the benefits the partners stand to gain and a solid timeline. If you are unsure how long to continue your joint venture, set a specific date to review the partnership and assess its success. Include concrete criteria to fully evaluate the partnership, as well as a fallback option if the arrangement is not going as planned.

Beyond these basic steps, effective negotiation is characterized by honesty and transparency between both JV partners. Remember that most joint ventures continue on for some time, so start yours out on the right foot with negotiations that are truthful, open and professional. Keep the process going with regular contact with your JV partner to assess your current arrangement and make adjustments as necessary in your plan. An effective joint venture offers many potential benefits, including a broader customer base and higher profit margins for everyone involved.

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.

Low-Cost, High-Impact Joint Venture Marketing

You may have heard the term “joint ventures” before, since this marketing method has quickly gained steam among larger companies and small business owners alike. However, you may not be sure what joint ventures are or how they would benefit your business. This article will take a look at the low-cost, high-impact nature of joint venture marketing that makes it an effective option for nearly any business today.

Expense, Exposure and Profits

Many small business owners make the mistake of thinking that the more often they can get their business name into the public eye, the more sales they will make. They spare no expense to provide their business with exposure, although high advertising costs can often put a business into financial trouble.

While exposure is an important component of marketing, it is not the only tool available. The right kind of exposure will ensure your profits increase, and this means encouraging customer confidence at the same time you are familiarizing them with your name. Joint venture marketing is tailored to building customer confidence at the same time it increases exposure by linking your business to another company the customer already knows and likes.

Multiple Marketing Channels

Customers gather their information from many different venues today, so the more venues you can use effectively, the better results your advertising efforts will reap. However, advertising in a variety of venues can be a costly endeavor – often more costly than many small businesses can afford.

The best solution is to partner with another business to share the cost of advertising so you can reach more customers in a variety of venues for less money overall. You can work together to produce website content, share back links and invest in tools like autoresponders to produce the best results for the least amount of money. Joint ventures allow you to stretch your advertising dollars so you get the biggest bang for your marketing buck.

Targeting Your Advertising

Your newspaper advertisement or website links might be seen by hundreds of individuals a day, but only a small fraction of those people might be legitimate potential customers. Advertising agencies understand that it’s not just about maximum exposure; it is more about getting your business name out to the people who are most likely to buy from you.

Joint ventures are perfect for this effort because related businesses with a similar client base usually work together for maximum impact. This means that the customers that head to your JV partner will be more likely to buy from you as well. You get targeted advertising without spending the big bucks for professional market research.

Joint ventures offer low-cost marketing options that reap high-impact results. By partnering with related businesses to share advertising costs, you attract a targeted market base for a lot less money. The ability to build customer confidence quickly through your JV partner means bigger sales and healthier profits with minimum advertising investment involved. It is no wonder that so many businesses of all sizes are turning to joint ventures to boost their bottom lines today.

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.

Tips to Coordinate a Successful Joint Venture

Joint ventures provide some of the best value for your marketing dollar today. By riding the coattails of a larger company, or combining resources with a business similar in size to your own, you can exponentially increase your customer base and your bottom line.

The success of your joint venture begins at the outset with the establishment of your very first JV partnership. We have tips to help you coordinate a successful joint venture right from your first contact with a prospective partner.

The Screening Process

The right JV partners will set the stage for a successful joint venture overall. To ensure you find the best possible partners for your arrangement, consider the following:

• The nature of the partner’s business and how well it relates to your own

• The reputation and history of the partner’s business

• The overall purpose and goals of the other business for the joint venture

• The ability to work well with and trust the partnering business

• The benefits both businesses will stand to gain from the joint venture

The more carefully you screen your potential JV partners, the more likely you will be to embark on a successful joint venture.

The Legal Process

Once you find a prospective partner that meets your pre-screening qualifications, it is time to deal with the legal aspect of the joint venture process. No matter how comfortable you feel with your JV partner, you want to have your full agreement put into writing and signed by both parties. Potential issues to address in your JV contract include:

• Management issues – who will manage what

• Availability and allocation of common resources

• Mutual gains and how they will be disbursed

• Accounting principles for the joint venture

• Taxes and potential deductions

• Specific business plan, including purpose and goals

There are a couple of options for drawing up a JV contract. First, look for templates online that have been specifically designed for this purpose. Second, hire the services of an attorney that specializes in business issues like joint ventures to handle the legal part of the process for you.

The Partnership Process

After the relationship is in full swing, there are a few factors to keep in mind to ensure your joint venture continues to motor along smoothly:

• Strive for regular communication between partners to assess the arrangement and make necessary changes

• Keep your word to your partner in all business endeavors, so a circle of trust is built within the joint venture

• Set a time-line to reassess your partnership and determine whether to continue the joint venture or disband in favor of other potential arrangements

• Aggressively market your joint venture, using all possible Internet options, to ensure the partnership brings you the best return

Joint ventures are a popular method of growing a business today, but many companies are still shying away from the concept for fear of getting roped into an ineffective arrangement. With these tips in mind, you can rest assured your joint venture will be as successful and harmonious as possible.

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.

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