joint venture marketing
joint venture marketing
The amount of people who will participate in a joint venture project depends on both the size of the companies and the size of the project that is being attempted. For two very small businesses it might be as simple as two company owners meeting together to discuss their plans. Usually, however, the team structure is more complex.
The governing body
It is common practice for both companies to have an equal number of representatives participating on the project. This way neither company feels as though it’s at a disadvantage. This governing body will protect the interests of all involved in the project. While they will have loyalties to their own company, their primary goal is to see that the project is completed fairly and successfully. The greater the size of the company, the larger the team can be. It is important that there are enough people who are part of the governing body to get the project done according to the projected time line, but it’s also important that the companies do not pull too many people away from their regular responsibilities. While the joint venture marketing project is important, it’s also important that the rest of the business continues to function effectively. It is not uncommon for companies to hire new people just to make sure that the business does not suffer.
The management team
It is also customary for there to be a management team. These people will be given the task of overseeing individual aspects of the project. Dividing the work load up allows for more personal attention to be paid to every aspect. These people are often supervisors or managers from their respective companies. They work hand-in-hand with the governing body; overseeing tasks that have been divided up and assigned for completion. It’s important that the company be able to keep the people in their group on task at all times while being able to add creative insight to the project. Oftentimes their jobs are more difficult because in addition to being part of the management team for the project, they are also still required to effectively do their job as supervisor or manager for the rest of the business.
The financial team
There is usually a financial team as well. As the investment of most joint venture marketing projects can be quite high, the job of the financial team is to keep all of the finances in order and try to keep the cost of the project within the projected budget. They research the best deals on anything that needs to be purchased and calculate the projected revenue for each aspect of the project. The more ways they can find to make and save money, the more successful the project will be. They also have the task of making sure the cost of the project is divided up between the two companies in the way initially agreed upon. Because of this it is very important that there are an equal number of people from both companies represented on the financial team. Neither company wants to feel that it is at a financial disadvantage for any reason.
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.