Appointing a person dedicated to finding joint ventures with your small business is something that could prove to be very lucrative. If you do this, then naturally that person will need to know marketing and learn about JVs. Contacting other people with good prospects can actually be a very easy process. Even if it takes a year to land your first joint venture and it succeeds, it will be a huge victory. By having just a little experience, you will become a JV machine that is profitable with every choice that you make.
Leverage is the best way to sum up the intention of joint ventures. Leverage is something that, if you’ve done any studying of history, you know was useful for a bunch of different applications and situations. Leverage has been called one of the most powerful forces humans can use. The nature of a Joint Venture is to use leverage–every company that is involved benefits and uses the combined power for their own benefit.
The goal is to create a joint venture to give you the highest level of leverage you can get. If everything comes together the way that it should, that is when the work that leads up to the launch will pay off. The payoff, depending on the size of the businesses with which you have joined forces, can be as high as millions of dollars.
Another business is only going to want to do a JV with you if you can convince them it’s in their best interests to do so. Large companies are particularly challenging when it comes to getting their attention for joint ventures. Keep in mind that your joint venture will be far from the first they’ve been approached with. When a company is large, well known or highly regarded, it gets offers every single day. You have to not only be persuasive in your mode of communication, but your actual offer must have some actual value to them. Make sure you have an offer that’s worthwhile before you approach a larger company. If you’re not sure you have what it takes to land a mega JV, why not get your feet wet and try some smaller ones first?
If you’ve got business contacts which are able to be developed into potential joint ventures, you should make sure to keep in touch–and this is why. You can call and talk to them, which is easy enough to help you build an alliance for your JV. Just talk to them about the industry and see if the both of you are interested in the same things. This approach helps it seem like you aren’t simply trying to develop a joint venture. When you can offer them something that is valuable to you both, it’s time to turn your talks more serious. If you come up with an idea, don’t share it just yet, start working on its development on your own. If you feel like the idea is genuinely valuable, you can write it down and send it to the other person.
Make a conscious decision to take on at least one joint venture this year. It’s something that you can do and once you do it, you won’t ever see your business the same way. If you continue with them, then your business will certainly grow along with your profits.