Reasons for Joint Ventures During Uncertain Economic Times

When the economy is in a downturn there are several really good reasons for joint ventures as a way for a struggling company to get the little extra business required to stay afloat and live to do business another day. Joint ventures provide many opportunities for companies to grow into new markets, extract additional revenue from their existing client base, and develop a strong network of other businesses that can be relied upon for supporting their customers to ensure a high level of customer retention. During tough times people do not spend as quickly or freely as during good times and so it’s very important to do everything possible to service existing customers and make it as comfortable as possible for new customers to try a product or service for the first time.

Develop New Customer Acquisition Strategies

One of the best reasons for a joint venture during a time of economic uncertainty is the potential to acquire new customers. Acquiring a customer is expensive and time consuming and the beauty of joint venture marketing partnerships is the potential to market to a partners existing customer base a product or service. Gaining access to customer lists or the capability to have a logo and company description sent out from a V.P. of Sales to existing customers can be a make it or break it opportunity for a small business in a tough economy. If a product or service your company is selling fits well with a partners existing offering you might receive new sales and never have to touch the customer because the partner is handling all of the customer facing activities and delivering your product or service to them directly.

Earn Additional Revenue

Earning additional revenue from an existing client base is an excellent reason for joint venture marketing relationships to be established with companies seeking to market to the demographic of existing customers. During tough economic times companies might be willing to negotiate better referral fees and percentages of revenue for each closed sales lead increasing the value of the partnership. Most small businesses are not servicing their customer’s entire needs and so it’s easy to identify at least 3 or 4 great potential partnerships that could support customers’ needs and put money in the company’s pockets simply for making products and services available to the company’s customers.

Create a Strong Web of Support

It is vital to create strong network of partners during a tough economy. It’s important to remain active pursuing the best and most attractive joint venture opportunities. Companies do fail during bad economies and so it is imperative that if a business has an important joint venture partner that is supporting its clients and putting money in its bank account that there is a backup plan in case a partner goes out of business. While it may not be the number one reason to continue to pursuing joint ventures during tough times, if a company that your business has a relationship with fails, it’s important to be able to quickly replace them with a new partner and promptly provide customers the confidence needed to not jump ship. Failing to not have a backup plan in place for servicing client requirements that are supported by joint venture partners is a big problem, but can be resolved by creating a strong network of associates and even partners that are in place, but not yet fully active.

There are many good reasons for joint venture marketing in a tough economy as well as during good times. Focus on developing strong JV partners to limit potential risks that may occur during a down economy and make sure to continue to track down new opportunities. Every joint venture partner is a new potential channel to acquire fresh customers and at the same time is an opportunity to gain additional revenue from an existing customer base.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

How To Increase Your Wealth Through Joint Ventures

How to increase your wealth is probably one of the most asked questions in the world. The challenge is there are no guaranteed answers for success. Progress depends on your capabilities, education, efforts and opportunities. The potential to increase your wealth on your own is one thing, finding a partner for a joint venture agreement opens up an entirely different pathway.

A joint venture is a business agreement, and the parties are all about contributed equity. In other words what do you bring to the table? So, where do you start when asking how to increase your wealth through joint ventures? Here are a few steps to consider:

Choose the right partner

This is often the hardest part, as the first step is generally the biggest challenge. Everybody will guarantee you the best deal and easy money, but do not fall for it. Carefully consider what your future partner is offering that balances out your areas of weakness. Choose wrong and you can fall further behind the curve because of wasted time and other resources.

Before you even approach someone or respond to a joint venture partnership offer, learn all you can about the individual or organization. Try to discover:

• How well is their business performing?
• What is their motivation for the partnership?
• Are they open to the idea of collaboration?
• Do you have the same business goals?
• What is their reputation in the marketplace?
• What does their financial background look like?

Sharing information and technology

If you want this to work, both sides must act as one. The joint venture partners need full access to technology and financial reports essential for the endeavor. While you need to have a strong working relationship, do not let your guard down as it relates to financial reporting. It is especially relevant to keep track of any business moves, no matter how insignificant they may seem. You should share all relevant information with your joint venture partner, and demand they do the same to avoid surprises down the road.

Take advantage of your partnership

Of course, in a good way! In today’s economy, it’s a challenge for small businesses to survive alone. Withholding key business information can hinder the success of the endeavor. Share market insights, marketing tools and customer contacts where relevant to the success of your joint venture. A partnership can also save you money by eliminating new employee hiring costs. If you attempted to expand on your own when creating new products or services, new staff is often a significant part of the investment costs. Reducing your expenses is an effective answer to the dilemma of how to increase your wealth.

The capacity

Let’s face it some businesses never reach the top on their own. It doesn’t always mean they’re not smart enough but having the right resources could have made the difference. A joint venture partner can help your business grow efficiently and cost effectively. Otherwise you may be full of exciting ideas, but with limited resources, those ideas will never come to life.

Entering a joint venture may be a tough decision, but it is worth taking a chance. Thousands of companies have found JV partnerships are an effective way to answer the question of “how to increase your wealth”. However, in order to achieve success and avoid risky situations, it’s necessary to define the process and take it one step at a time.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

A Reality Check About Joint Venture Strategies

Many business owners have only a limited understanding of joint venture strategies and gain only a little knowledge from hearing others discuss their experiences. A marketing conference speaker using the latest popular buzzwords perhaps easily impresses them. However, after the conference the attendees struggle. Ultimately they realize that they actually lack sufficient knowledge of the fundamentals to develop practical and winning joint venture.

Start with a full plan

Always know the proposed goals of the possible joint venture. Otherwise, how can you adequately decide if they meet the desired risk-reward basics? Sustainability is the key principle involved here. A number of businesses on paper have all the assets and capital needed to propel a business to new heights. But further examination shows the financial objectives considered are actually not economically sound. The risk-reward factors perhaps do not consider the cost of financing, timelines, legal implications and so on.

Formulating joint venture strategies focusing only on the prevailing economic conditions can spell doom to a business. How exposed is the business to future changes in economic forces like crude oil prices, fluctuating world currencies, new regulations, and transportation bottlenecks? A sound JV strategy should still offer the necessary profit margin, even when evaluating worst case scenario situations.

Understand why you should form a JV partnership

The parties outlining their joint venture strategies should identify key synergies, which explain why forming a partnership is the right decision. There is absolutely no reason to have a joint venture agreement if both parties feel that they are better off alone. The potential partners should offer something the other does not have, and vice versa.

Money cannot be the sole determinant factor. Sometimes simple considerations like geographical location will impact success. Joint venture strategies that take advantage of resources unique to a certain location can also be a good ingredient for a mutually beneficial agreement. In these cases there is an increased demand for an equally high supply of something. A good example is companies that deal with energy, mineral or natural resources. This is why some foreign entities will scramble to have a share of Middle Eastern, African and Asian companies.  

The human factor

Multinational companies must fully examine what personnel resources both sides have to offer. Technical expertise, relevant experience and proven track records are resources a potential partner can perhaps offer in place of finances. On the other hand, if their staff is not ready it can wreak havoc on the budget and timeline. Too often a good percentage of joint venture strategies will stagnant behind schedule, because of the time spent training employees. Unfortunately, sometimes this training was not properly forecasted so this significantly impacts budgeted time and resources.

It boils down to doing your homework before signing the joint venture agreement. Simple pitfalls can be avoided or circumvented with a properly prepared partnership. When evaluating joint venture strategies, what is seen on paper is not enough; consider on-site appraisals even if the cost is significant. It is important to make sure you have the real picture.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

How to Find Joint Venture Marketing Partners

Working with another company through a joint venture marketing agreement can be a good business decision, especially for companies who have limited resources but are willing to take the risk. Teaming up and creating a new business entity with its own assets and sharing the risks and rewards from the project may be just what is needed to accomplish what seems impossible to do individually. But the question is how to find joint venture partners who are a good fit for your business.

Finding joint venture partners

There are two possible solutions to finding the right JV partner. First, look around your immediate and local market for prospective partners and talk to them directly. The other is getting in touch with them through a “feeler” question or comment. A feeler usually draws out the hint, opinions or purposes of others in a group of people who might be interested into contacting you. One of the best places to find prospects is through social media channels such as Twitter and Facebook, however your first stop should be LinkedIn, which is the leading social media channel for professionals. You will find in most cases, that what you are looking for is just a click away.

Strategies for finding potential joint venture partners

In looking for possible JV marketing partners, you should ask yourself what are the qualities in a business partner that you’re looking for. Are you lacking in funds? If you want additional capital but are not interested in getting business loans, then finding a business investor is what you need. Look for them in your own business community, or even from your direct competitors. Sometimes your competitors are just waiting to be asked for a possible merging. Teaming up with a competitor is sometimes easier than getting somebody who has no knowledge of your business at all.

Industry journals are also valuable resources for scouting potential partners. Look for advertisers who might be interested in joining the venture. Scan your circle of business associates as it’s easier to approach someone you may already have an acquaintance with. They can be reached at conventions, conferences or seminars that you’re attending.

For those companies who have enough capital but lack expertise to further expand their business, look to schools, and the web or specialty institutions as possible leads. The internet has plenty of sites that provide access to freelance service providers. You can browse their qualifications and goals, and who knows, maybe he is the one that you have been looking for to team up with.

There are no limitations as to where you might find a joint venture partner. It could be a friend, or a friend of a friend. You just need to share your insights and visions of the joint venture marketing partnership you have in mind. Who knows, maybe the person sitting next to you in a restaurant or airplane turns out to be your future JV partner.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Talking Points You Need to Know Before Forming a Joint Venture

There are many situations in the diverse world of business today that justify the need to enter into a joint venture marketing partnership. After hearing about joint venture marketing, someone might be excited about having their business transformed by creating an alliance with another successful and related business. However, the business world is full of rough-and-tumble personalities which will require you to tread cautiously in order to function efficiently and avoid getting the short end of the stick so to speak when it comes to a JV agreement. Here are several key points you cannot afford to ignore before entering a joint venture partnership.

Do the companies complement each other?

First of all, the potential partners should deliver a product and/or service that complements or at the very least is related to both companies. Obviously you’ll want to avoid partnering with a business that competes directly with your company’s products or services. Offering complimentary products or services in your new joint venture will go a long way to make the partnership a successful one. For example, home décor products would go well with a company that provides consumer electronics.

Does your potential JV partner have a compatible strategy?

The scope of the other partner’s strategy should not clash with yours. If you have a long-term plan in mind, it wouldn’t make sense to partner with a company that’s only in the market for the summer. Keep in mind the scope of your combined strategy will also influence things such as marketing plans, employee recruitment and training, and other short-term goals you may have for your business. Additionally, the combined strategy, whether it’s capital intensive or labor intensive will depend on the size of the businesses involved.

Another factor to take into consideration when reviewing whether or not you and your potential partner’s strategies are compatible is each company’s timeline. Know how soon the other partner plans to do some crucial tasks. Know how often they borrow or pay off loans. Without time lines, a business is just drifting with the current, lunging at any piece of business that drifts downstream. This is clearly not how a profitable business should operate. It’s also wise to crosscheck what customer base the other business already boasts. What quality is there and what room for improvement exists?

Is your potential JV partner financially sound?

Finally, the capital base that exists should be given top priority at the outset. Can you picture entering into a joint venture marketing agreement with a company that is going to declare bankruptcy tomorrow? Often, the integrity of both partners to the businesses will take a beating if one of the two declares that he cannot meet financial obligations. It’s highly recommended to have an attorney draft up an agreement to clearly outline which obligations, whether financial or otherwise, will be handled by which partner. That way, it’s not one person holding the reins of the agreement. The golden rule is being willing to treat the other partner’s business as if it were your own.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Ventures: Pros and Cons for a Small Company Working with a Large Company

When deciding whether it’s the right move for your company to enter into a joint venture project there are many things to consider. When two companies of about the same size enter into a JV marketing project, it is much safer for both parties. However, when a very small company is approached by a large company to team up, there are different risks and benefits they’ll need to consider that two companies of the same size do not have to think about.

The opportunity for a small company to join with a large company on a joint venture marketing project presents the small company with many benefits that it might not be able to acquire otherwise. The larger company’s revenue is going to naturally be more than the smaller company’s intake, making it possible for the smaller company to make a great deal of money on the venture. The large company would not be interested in the project if it was not going to make enough money to be worth their wild, meaning that a successful venture will result in a large amount of revenue for both companies. While the larger company would be able to make that amount of money in other fashions, the smaller company would not, making profit the number one advantage for a smaller company to work together with a larger one.

A joint venture marketing project also presents the smaller company with the opportunity to expand its business. There is a good chance that by completing the project, the smaller company will learn skills that will aid in the expansion of the business. The small business may also be put in contact with other businesses through the venture that it would not have otherwise had contact with. This could also aid in the expansion of a small business.

However, there are also risks involved when a small company decides to work with a larger company. While a larger company would be able to go weeks, or even months, without seeing any profit from the venture, a small company would not be able to easily survive that long without getting paid. Also, unless the larger company agrees to pay for more of the project than the smaller company, it will be a very expensive venture for the smaller company. Even if the revenue at the end of the venture is great, the smaller company might not be able to survive until the end. Because of this, detailed time lines are essential when companies of two different sizes team up together. The project usually needs to be completed in a short stretch of time so that the smaller company is not injured.

It is also possible that the larger company will completely absorb the smaller company. This could be an advantage or a disadvantage. Some small businesses do not want to join larger ones, but instead prefer to remain small. However, if a small company is looking to become part of a larger business permanently, then it is possible a joint venture marketing project with a larger company will ultimately result in this.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Defining the Relationship in a Joint Venture Marketing Plan

Business is all about developing relationships and forming partnerships to get your business off the ground. A poorly planned joint venture is destined to fail from the very start. One way to ensure this doesn’t happen is to create a joint venture agreement that is aligned with the goals of your JV.

Reciprocal

Reciprocity is very simple. If you’re good to your partner and create revenue for them, they’ll want to reciprocate. The referral mechanism for a reciprocal agreement could be as easy as displaying your partner’s business cards or adding its logo to your marketing materials. You are basically saying you give your partner’s company your stamp of approval. Think about how your pediatrician can recommend a good nutritionist for your kids, or how many Wal-Mart locations have a McDonald’s inside the store; this is reciprocity at work.

In mid-July, American Airlines, British Airways and Iberia were finally able to announce their joint venture. The European Commission had approved their partnership which allowed them to expand their code sharing. The companies were able to sell their partners’ flights under their own name and flight number. This venture gives American Airlines more cities to sell flights to and from Europe.  British Airways and Iberia would be able to use American Airlines extensive network in Canada, Mexico, the United States and South America. This is an example of a multi-national company successfully designing a reciprocal relationship that should fit the needs of both organizations. However, small local companies can do the same.

Profit Sharing

Profit sharing also means risk sharing. When you decide to choose a profit sharing joint venture, you’re also agreeing to share half the risk and half the potential losses. To avoid confusion the contract must clearly state that both companies are equal partners. All profits, risks and loses are shared equally between you and your joint venture partners.

Delta Airlines and Air France/KLM put together a $12 million per year profit-sharing venture which would allow the companies to become a single carrier on North Atlantic routes. This offer also extends to a previous venture between Northwest and KLM which has been in place since 1997. This is the most advanced model of successful international of airline cooperation. The benefit to customers and the businesses are paramount. Where can you form a joint venture marketing agreement with a local partner that will answer the needs of your customers?

The Best of Both Worlds

Recently SkyWest and Virgin Blue Group signed a 10-year joint venture agreement which will provide Australia with up to 18 Virgin Blue-branded aircraft. This venture makes it possible for SkyWest and Virgin Blue to operate at a number of existing and new destinations in Australia.

If both reciprocal and profit-sharing agreements seem like a good option for your business, you’re in luck because a joint venture marketing agreement is completely customizable. All you have to do is put what you want in writing to be presented to your potential partner at negotiations. You may have to make some compromises, but that’s the case in most business partnerships.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

4 Ways to Capture the Attention of a Prospective Partner

You know that joint ventures have become a lucrative way to build your business with little up-front costs. However, knowing joint ventures are a good idea and actually launching one can be two very different things.

The first step in any successful JV is attracting the right partner to the mix. Once you have identified the business that can help you explode your profits, the second step is to get that prospective partner to sit up and take notice of your proposal.

We have four ways to capture the attention of a prospective partner and raise the odds of a joint venture success.

Stand Out from the Crowd

If you’re going after a larger company, understand that they may be receiving multiple proposals that are similar to yours. Make sure your proposal stands out from the crowd by letting your unique characteristics shine.

Take some time to think about what sets your company apart from the competition, and highlight those points in your initial proposal. At least the other business owner will take notice of what you have to offer, which will make him more likely to accept your proposal.

Personalize It

You may be sending out multiple proposals in a single pop, but there’s no reason why your prospective partner has to know. Personalize all of your correspondence, highlighting specific reasons why you want to work with their company. Customize your own benefits to show partners why they might want to work with you as well. Everyone likes to feel like they’re someone special and prospective JV partners are no exception.

Professionalism is a Must

Joint ventures require a high degree of professionalism if they are to be successful from the beginning. While your correspondence and face-to-face meetings can be pleasant and even friendly, they should never lose their professional edge. This means proofreading all correspondence for errors before mailing and dressing the part whenever you set up an appointment with a prospective partner.

Creativity is a Plus

Creativity will help you stand out from the crowd and show your JV partner what you might be capable of handling in the marketing department. You don’t have to get too crazy with your creativity to show you think independently; try including photos or customer testimonials with your original proposal or offering marketing samples at your first meeting. Joint ventures are dependent on savvy marketing and creativity is the first step in marketing that gets results.

Finding JV partners is hard enough, but once you locate some good prospects, you need to be prepared to grab their attention. These four tips will help you exude a professional image that prospective partners are sure to notice and appreciate. When you can successfully make your company stand out from the crowd, you will be more likely to attract the partners that hold the greatest potential in helping you build your business.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

The Customers are Coming! Now What?

When you launch a joint venture with another company, the idea is to build your business and bring in more customers, right?  What happens when you suddenly find yourself with an influx of customers?

While most business owners may be thinking that’s a problem they would like to have, it still can be a problem if you are not prepared for the increase in business. We have tips to help you prepare for the influx of business that could be the positive result of your joint venture efforts.

Get Your Staff On

If your joint venture efforts include a special promotion to attract new customers, you may find yourself overwhelmed with new business for a number of weeks. Make sure you are properly staffed for the increase, even if it means bringing on extra help for a short-term assignment. For those who can’t afford to hire extra personnel, automating many of your processes can help lighten the load for the employees you do have.

Stress Service

When businesses get busy, customer service is often one of the first assets to get sacrificed to the crowds. Make sure your staff understands that an increase in business is the perfect time to improve the service level, so all of these new customers come back for more.

Now is the time to provide additional training or incentives for your staff to ensure every customer that comes through your doors or clicks on your website has a satisfactory experience with your company.

Back Up Your Product

It isn’t unusual to run out of product when business suddenly increases. While you don’t want more inventory than you can sell, make sure you have a way to get additional merchandise expeditiously if it turns out there is a bigger demand than you expected. Drop shipping can be one option in these situations, although overnight delivery and additional suppliers are other choices worth considering.

Always Say Yes

When you have many new customers trying out your business for the first time, it’s important to be as accommodating as possible. Empower your employees to be able to say “yes” to most of your customers’ requests, even if it means bending the rules to keep them happy. Loyal customers are much more accepting of “no” answers from time to time than brand new customers.

Add Some Freebies

To entice those potential customers to buy from you, add some freebies to the initial order. It might be a free sample of a related products or a discount on their subsequent purchase. Keep in mind that Internet companies are a dime a dozen, so you might have to sweeten the pot to get a customer to do business with you, rather than the next company on the search engine.

Joint ventures are one of the most effective ways to increase your customer base, but you need to be prepared for those additional customers once they visit your business. With these tips in mind, you will be ready to handle that influx of potential customers, so newbies become loyal clients in no time at all.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Online and Offline Joint Venture: The Perfect Match

There is no doubt that some of the easiest joint venture happen online. However, that doesn’t mean you should disregard offline businesses as potential JV partners, just because they don’t fit your initial profile. With a bit of effort and marketing savvy, you can create the perfect business arrangement between online and offline companies. We have tips to help you make these types of joint ventures a complete success.

The Audience is the Key

Whether your JV partner is online or offline, the most important feature to look for is a company who shares your target market. If you are in the wedding photography business, look for other wedding service providers, such as florists or caterers. If you sell computer software, look for a company that provide products and services that complement technology.

By choosing a company with the same target market, your joint venture is more likely to be successful, no matter how you decide to market it.

Have Marketing Ideas in Place

Before you approach a potential joint venture partner, have some ideas on how the two of you can work together to increase customer awareness of both your business. This may require a bit more creativity if you are combining an online and offline business, but it is far from impossible.

For the online business, simply placing the other business name, address and phone number on the company website is a good start. You can also offer free advertising in your email newsletters with full company information included.

For the online customer, consider creating a brochure about your business that your JV partner can hand out to customers. You might also write a tip booklet or other promotional material that potential customers will find too handy to toss. These simple promotional items can be placed in your partner’s business where your target market can be easily reached. You can also offer discounts or even free samples at their business to entice new customers to check out your website when they get home.

Approach Potential Partners

Once you are armed with a few marketing ideas, it’s time to approach potential partners with your proposal. The best way to do this is in person, possibly with a phone call first to schedule a time that is convenient for the other business owner.

When you enter the person’s business, be complimentary about their store or the goods they sell. Explain the benefits that he will receive from your proposed joint venture. Show your ideas about how to effectively market your joint venture so that both businesses win. If you present your proposal in this fashion, you are much more likely to gain a new business partner for your efforts.

There are plenty of good JV partners to choose from today, as long as you don’t limit yourself to a preconceived notion about what these businesses might look like. Even companies that don’t have a strong online presence can be effective joint venture partners, if you choose a business with a similar target market and have a solid marketing plan in mind before either business signs on the bottom line.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

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