joint venture marketing
joint venture marketing
The hard part about joint ventures is the actual work in convincing a potential JV partner about the merits of the venture. Once you have a JV partner in hand, the next step is communicating together and working toward forming a solid business plan that will guide you to success with the venture.
A joint venture marketing business plan does not need to be a fully composed booklet like the type mainly used for acquiring loans or other funding. Of course, the more detail you and your JV partner can put into your strategic plan, the better guide you will have. However, your business plan could be as simple as a one-page point-by-point strategic outline.
Goal of joint venture marketing Partnership
Your number one assignment in forming a JV business plan is to spell out the goal for each party. The goal doesn’t necessarily have to be the same. Your specific goal in the partnership may be to get access to wider marketing base, while your JV partner’s goal may be to increase revenue through the sharing of technology and expertise.
Be sure to spell out the goal so that neither you nor your JV partner has any miscommunication about why you are in the partnership.
Assignment of Duties
What specific duties will you perform? What will your JV partner do? Again, to avoid any misunderstanding in the division of duties to reach your JV partnership goals, write out the duties that each will perform along the way.
How will you and your JV partner split expenses? Is your JV partnership large enough that it may need a bank loan? In your JV business plan, know how you and your partner will fund the venture. It may be as simple as contributing $1000 each into a JV “kitty” to get the venture rolling. Wherever the funding comes from, clarify who will pay for what expenses and how much each is willing to contribute.
Will you and your joint venture marketing partner need additional resources in addition to money? Perhaps you will contribute some of your employee expertise, or your JV partner will utilize his distributing network to make the JV a success. Be specific in how you will allot the resources needed.
Division of Profits or Benefits
If there is a profit to be made and split from the joint venture marketing endeavor, how will the funds be allocated? Perhaps it will be a 50/50 profit split, or depending on one partner’s additional resource allotment, the profits may be split 70/30. Be sure you each know what you will be receiving from the partnership.
Finally, make an exit strategy in your business plan, which will allow you and your JV partner to know when it is time to fold the cards. Perhaps your goal is a short-term partnership that will terminate after a specific event. Or, it could be an ongoing joint venture marketing project until one or both of the partners says they are ready to terminate the agreement. Spell it out clearly so that you both know how to wrap up the JV cleanly and without ill will towards the other.
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.