joint venture marketing
While joint ventures are one of the most effective ways to build a business, the right partner will make all the difference in just how profitable your joint venture can be. When you do your homework up front to find the best fit in a JV partner, the benefits and rewards are far-reaching indeed. We have five traits of a successful JV partner to look for when beginning the joint venture process.
The performance of the company is an essential characteristic of a successful joint venture partnership. Companies that consistently perform well individually will also be more likely to be an asset to your joint venture. Don’t be afraid to ask about the performance of potential partners, in terms of sales, profits and reputation.
Complementary Brand Values
When choosing your JV partner, you should look for a company with a complementary brand value to your own. Avoid companies that you would be directly competing with; instead, look for businesses that would have a similar target market, but sell a completely unique product or service to yours. A wedding florist and stationer are perfect examples. This allows you to combine your brand values for the best possible results.
When you partner with another company in a joint venture, your corporate identities tend to blend as well. This is beneficial if you are working with a company that boasts a stellar reputation in your industry, but not ideal if the company has a poor reputation for service or quality. Check into potential JV partners by reading customer and industry reviews to ensure you find a partner who boosts up your own business rather than dragging it down.
It goes without saying that you should choose a JV partner that is financially stable, but many business owners are hesitant to ask another company for a peek at their bottom line. There is no reason why you should not be privy to at least some of a company’s financial information before partnering with them to ensure your partnership is a stable one. Choosing a partner that is not in a good financial place may result in losses for your business as well.
When each company brings its own brand of marketing savvy to the table, the effectiveness of the joint venture is exponentially amplified. Perhaps you are a master of online marketing, while your JV partner already has a massive customer list to boast. When you put your heads together, you can make the most of your marketing efforts by expanding and stabilizing your current market base. You also get to split the cost of advertising, giving you a lot more bang for your marketing dollar.
Joint venture partners come in a wide range of types and sizes, allowing you to customize your joint venture to your specific business goals. However, the wide range of choices can also make it difficult for you to know which company will be the best fit for you. When you choose your next JV partner with these criteria in mind, you will be much more likely to enjoy a successful, profitable relationship.
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.
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