Joint venture is the most powerful emerging marketing tool of the modern times. What exactly am I doing in a joint venture? It indeed is quite simple; you just need some elementary knowledge of business strategies. Joint venture forms a partnership in a way that benefits all the parties involved, a kind of referral relationship. You don’t have to be a “big fish” to make your mark in the business world, even for your small business joint venture can be proven out to be a lot beneficial.
Another common query that comes to your mind is What Kinds of Joint Ventures Can I Do? Joint ventures take many shape and forms but the most important thing to remember is that it’s always a “win-win” situation for all the business partners involved. There are many common joint venture ideas that have proven to be quite successful for “new fishes” trying to establish themselves in the market.
The most common venture is to trade the mailing lists and your customer databases with another company that targets the same demographic as yours. But before entering this venture, make sure you have chosen the right partner and your details are not going to the wrong people. Secondly, you can trade the advertising space in newsletters and other publications. Placing literature in each other’s stores or links on each other’s websites gives an added exposure to your business.
And lastly, creating a formal relationship is the key for a successful and last-longing business relationships.
It is important to remember that while some joint ventures involve formal written agreements and an exchange of funds others are as simple as a co-operative marketing agreement settled with a handshake.
Another question that baffles the minds of most of the business entrepreneurs is With Whom Do I Form a Joint Venture? In reality, any business can form a joint venture with someone. The most important element to consider when choosing a partner for a joint venture is whether your two companies have the same target audience. Notice that only target audience needs to be same not the entire product and services you offer.
You can have a successful partnership with a key customer, a non-profit or businesses whose services or products complement yours .All of them act as potentially valuable resources, you can cash on later for your business.
Simply think logically about what other products or services your customers would interested in buying .You should make sure both of your companies have quality products and services to sell though otherwise you both will end up losing on the deal by losing the trust of existing customers giving your business an extreme loss.
Is it starting to sound easier? Don’t get me wrong; joint ventures are time consuming and often-high maintenance. However, it’s not astrophysics, and it can be a no-cost way of generating far more business than you ever could have on your own—and of building a lasting friendship with your joint venture partner, which will give your business a great edge above your competitors.