joint venture marketing
Before you solidify a potential joint venture partnership, keep in mind some of the inherent human natures that could hinder your success. Joint ventures are a great way to increase your profits and reach new markets. But with the wrong person, you could face heartache and aggravation.
One thing to keep in mind is that people have a wonderful tendency to say, “yes” to great ideas, but some are lousy at finishing or following up on their side of the bargain. If you form a JV partnership, you need to know that your potential partner can be counted on to fulfill obligations set forth in your agreement and not harm your business or reputation.
Nobody Cares More Than You
Remember that no one cares more for your business and its success than you. When you form a JV partnership, your partner’s intentions are not for you business to succeed, but for his. Nobody else will work as hard as you on your business, and you need to make sure that your JV agreement is a win/win situation for both parties.
A new joint venture can be exciting for the parties involved and provides encouragement for the successful outcome. But when the week-to-week and month-to-month management of the joint venture reveals problems, either by low revenue, higher expenses, or more work than expected, you can be sure you’ll find out the full commitment of your JV partner. A partner with bad character will find ways to bail out or simply profit himself with no benefit to you. Though it’s nice to believe the best in people, you may find it wise to have an attorney draw up your joint venture agreement to protect your business interests.
Depend On Experience
If you are on the lookout for a potential joint venture partner, look for one who has had years of experience running a business and has a good reputation for being trustworthy. New business owners and inexperienced entrepreneurs may not fully understand the commitment required in a joint venture deal and can easily be tempted to take advantage of you. Rather than become equal partners, they may turn out to be followers, and you’ll be stuck doing most of the work but still sharing the profits.
With someone experienced in running a business, you know they are familiar with business elements, such as sales and marketing, production, HR, management, and even technology development like websites. If you think it will help, even ask your potential joint venture partner to provide references. Call them and ask about the individual’s trustworthiness and ability to handle a tough situation.
Be Cautious With Promises
Generally, you want to be careful when making promises to your potential JV partner. It is always wise to sit down with your JV partner and formulate your mutual goals and outcomes. However, be careful of obligating yourself to a situation that could mean more time, effort, and money than you are willing to exert.
For instance, you could determine that your JV partner will handle all print advertising and you will be in charge of all online marketing. Without realizing it, you could end up putting hours of your time developing a website, or hiring a professional to design one. And your online promotional efforts may take a lot more than just updating a website. You may want to try social media marketing, or even perhaps start a blog about your joint venture products and services. All that could mean a whole lot more effort on your part to maintain a website, write blog articles, and find other ways to promote your JV partnership online. Make sure you all the duties are equally divided between you and your JV partner so there are no hurt feelings or dissatisfaction.
Ultimately, you must be willing to trust your partner and take a chance on forming a successful JV. But taking steps to get to know your partner and determine whether they possess the right character that leads to a successful venture can be the critical insurance you need to protect your interests.
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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