joint venture marketing
joint venture marketing
According to Hot Growth, a list of America’s fastest-growing small companies, several of the most popular online auction and technology corporations are now billion dollar companies. Past list members who have graduated to the big time include Abercrombie & Fitch, Whole Foods Market, Cisco Systems, eBay, and Apollo Group.
So as you can see these household names started out small and joint venture marketing has been a key factor in their success. A few suggestions include:
Making a proposal
Try not to aim too high with your offers even though it is tempting. As a small business, target your offer to another small company with complimentary but not competing services. Establish successful joint ventures with small companies which will get your business noticed by the bigger more powerful ones. A reputation as a solid business owner who knows how to turn joint ventures into gold for their partners will benefit you in many ways. Businesses naturally gravitate towards other successful businesses. Advertise your company by announcing joint ventures through press releases and articles in trade magazines. The competition will quickly become aware of your presence, as your business expands and there’s a chance that powerful companies might come up with proposals to joining forces with your company.
Decisions that Make Sense
Research companies that are aimed at the same audience your business is trying to reach. When choosing a joint venture partner company look for things like, do they have joint venture agreements with your competitors? Does your potential partner have other joint ventures that did not work out, if so why not? You should make sure your company and the potential partner companies have similar goals for this agreement.
Agreements and Contribution Plans
Dividing everything 50/50 and seeing your partner as your equal is a great way to do business but it may create problems when a decision is needed and both parties cannot see eye-to-eye. If these problems are worked out ahead of time in the agreement, it will save time later. The agreement should also specify a way to unwind or even exit the joint venture if deadlocks cannot be broken. Similarly, both parties should work out a clear contribution plan, which clarifies both who invested what and who is required to put additional cash into the venture moving forward.
Take careful consideration when choosing a joint venture business partner. Make sure to research all possible partners, aim your proposal to other small companies first and let the big ones come to you after, making a successful reputation.
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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