Joint Ventures

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Joint ventures, or otherwise known as strategic alliances, are a type of business partnership where organisations come together to share knowledge, markets, and profits.

Whichever form it takes, it is a partnership based upon win-win outcomes.

The beauty of a JV is that more often than not the only cost in setting them up is your time.

So if you select the right businesses to partner with you can be onto a real winner!

For example, I was recently approached by a trade organisation. They wanted to offer my sales courses to their paying members for a 20% discount.

What was in it for them?

Well, by offering my courses to their 2500 member list (all businesses) they were offering their members something of value and at a saving to them as most of them wanted sales training.

Well, now they could get it at a reduced rate! Also, when it comes to renew their membership at the end of the year it is another benefit that they can use in their proposition.

They were making no monetary gains out of it. The deal was in the best interests of their members.

What was in it for me?

Well, free marketing for one!

I did not have to lift a finger as details of my courses were communited to all of their members on a monthly basis!

A true win win!

I often get called in to help companies find suitable JV partners as the benefits can be immense!

If you are looking to set up your own joint ventures here are 4 tips to help you on your way:

Have clear objectives

Know what you want from your JV from the outset.

Do you want more sales? to build credibility?, to use the JV for marketing purposes? to reduce your costs?

Also, it is important to ensure that your partners goals fit nicely with yours. They don't need to be the same but they must be a good fit.

Hunt your partner down!

Take your time over finding the right partner.

Just because you may make some money out of the JV does not mean that you should take any partner on board. Make sure that your cultures do not clash. For example, your partner might be in the JV business for the short term, make their money and then get out whereas you want to nurture long term business relationships.

Think win-win

When planning out your JV with your partner in all of your dealings with them, whether they be legal, negotiations or the ins and outs of who is doing what, make sure that there is a win-win agreement for both parties at all times.

Relationship building

Make sure there is plenty of ongoing communication, understanding, trust and information sharing between you and your partners. Remember, this is a relationship after all!