joint venture marketing
We know that joint ventures are a great strategy to join forces with a partner and form a win-win business deal. But are all JVs winners? And what are the risks involved if you do become part of a JV with another business owner?
Risks are present in all aspects of business. Forming a strategic alliance in the form of a JV is no different. However, with all success in life and business, controlling the risk is the important task. What can you do to control your risk as part of a JV and make it a success?
First, you need to identify the potential risks. What do you value as a business owner? Here are some typical values that could be at risk with a JV partnership:
Avoid the Risk of Losing or Wasting Time
The great businessman, Benjamin Franklin, stated that “time is money”. Every minute you spend on your business should be in the pursuit of forwarding the success of your business. You spend time each day creating and building relationships, selling goods and services, hiring and training valuable workers to perform the tasks of your business, etc. If your time is lost, then your business suffers.
Rather than waste time with a JV that is destined for failure, you can control this aspect by choosing a JV partner wisely. Know that your JV partner is committed for the long term and has the ability to make good judgments.
Schedule your time effectively. Why waste hours in discussions with a JV partner that is unproductive? When you meet and communicate with your partner, make sure you are organized and ready to make recommendations and decisions.
Avoid Wasting Money
Cash is king. You need cash to continue to be liquid and fluid in your business. Know your limits to how much you can contribute to JV, and be honest with a JV partner about your limitations. Before a JV goes live, you and your JV partner should perform marketing research and other studies that provide valuable data about how and where your liquid capital contributions will be spent.
Avoid Losing or Wasting Proprietary Technology
Your JV should share resources in the pursuit of making a profit. However, you must be wise and cautious about sharing secret intellectual property. Sharing a printing press is one thing, but sharing unique software programming that you developed is another. Be willing to use your technology, but you don’t have to share your secrets.
Avoid Losing Credibility
Indeed, one of the risks of a JV is the risk of losing face with your customers or with other business associates. This is where choosing the right JV partner becomes very important again. If your business has a stellar reputation, don’t agree to a JV with a business owner known for cheating or poor customer service.
Joint ventures are inherently geared for success, just like two heads are better than one. You must be willing to share and participate, but take the time to be organized, research, and make wise choices so your JV will have the opportunity to blossom.
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.