Should You Test Run Your JV Partnership?
By Christian Fea
Forming a joint venture partnership can be a big step for many entrepreneurs and business owners who have made their own empire all by themselves. However, if you are a delegation-style business owner, you may have reservations about entering into a JV with another business owner.
If a JV proposal looks enticing and the only thing holding you back is the uncertainty of committing to a full JV partnership, there are ways you can test run your partnership without committing too much of your resources.
Joint venture partnerships take on many forms. In the most committed JV partnerships, the parties agree to share resources, such as money, staff, production facilities, etc., to promote their business, package each other’’s products or services, or even create, distribute and sell a new product altogether. These partnerships require much effort from both parties to ensure that a business plan is executed effectively and that profits are shared according to the agreement.
But what are some ways that you could partner up with another business owner that does not require so much time, effort, and resources?
Promote Each Other’’s Business
One of the most effective core JV strategies is to cross promote each other’’s business. This is simply done by informing your customers of the benefits and products of your joint venture partner. One possibility is that you and your JV partner could offer free samples of your products in the other’’s respective store. Are you a great cupcake baker? Offer samples to your JV partner’’s customers in her coffee shop. And you could offer free coffee samples in your bakery.
Another promotion strategy is to give coupons that are only good for customers of your JV partner, and vice versa. Have your partner’’s hardware customers come in to your store for a discount on a garden plant, while your JV partner could offer your gardening customers a coupon for a new hand shovel and gloves.
And don”t forget to lie out brochures and signs in each respective store that offers more information to each other’’s customers. With cross promotion, you each can enjoy increased profits simply by sharing customers, while avoiding any monetary commitment.
Bundle Products to Sell
Bundling is another good strategy for selling more and sharing the profits. In the above hardware/garden example, you could bundle a package of seeds or tulip bulbs with a set of your partner’’s garden tools. Another great bundling idea is for food service businesses. Package your specialty chocolates in a basket with your JV’’s specialty wine. Bundling is a great way to offer added-value to customers and potentially sell more product than just on their own virtue.
Share Customer Lists
An easy strategy could also be to share mailing or email lists. Choose a joint venture partner who has a similar target customer demographic as yours. You could then promote your business to their customers with mailings or email offers, while your JV does the same with your customer list. No additional resources need to be spent, nor does any profit need to be split. If this cross promotion works, you and your JV partner could ramp up your commitment and find another way to offer value to your shared customers.
Joint venture partnerships need not require a lot of effort using these simple strategies. If you have a successful test run with your JV partner, you might move forward with bigger ideas and have even bigger success.
About The Author
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 Joint Venture Wealth Report.
