1. The Business Plan

Your JV can go nowhere without a road map. That’s where a well-written and defined business plan comes into play. If your joint venture plans to compete within a defined market, you will need to have a blueprint that defines who you are, what you will offer, how you will deliver it, and why customers should choose you over a competitor. The business plan is not the end-all strategic document written in stone. However, as mentioned, it is a blueprint in which you and your JV partner can develop your step-by-step competitive strategy.

2. Innovation

In order to compete with other businesses, you will need to have an innovative solution added to your product or service. If two retail stores carry and sell the same hiking boot, why should customers buy from one or the other? The difference will be the innovation in the product or the marketing of the product. If you are the shoe storeowner selling a hiking boot, you may team up with a bookstore seller to form a joint venture. Agree to offer a free local hiking guide to customers who buy your hiking boot selection, and include a coupon for the customer to buy any book at the bookstore for a discount. Through this strategic and innovative marketing technique, you can differentiate from the competition.

3. Marketing

Unless your customers know your product or service exists, you won’t have any customer. Your marketing strategy is the lifeline between you and your market. Develop a message that strikes a proverbial chord with your customers. Tell them why they need your product.  Explain the benefits to them. And let them know how they can get hold of your product or service. 

Your message must reach the right audience. Be sure to define your target market and discover the most effective channels of marketing, such as PPC ads, SEO, and advertising on related blogs and websites that will reach that market.

4. Endeavor to Lead

Part of your competitive strategy could be a notion that you and your JV partner want to become a leader in your market, or extend a lead from competition by joining forces. With your business plan blueprint in hand and innovation and marketing strategy set forth, you can set your JV to become a leader in the market you pursue. Find other ways to stand apart from the competition, such as

• Develop new products and services
• Create new markets
• Exploit and fill a niche
• Provide added-value to your product
• Extend the best in customer service and attention
• Be flexible to adapt to a fluid and evolving market

Your JV can be a giant success if you and your JV partner develop a winning competitive strategy.  Don’t rush or be hasty with your strategy. Take the time to develop all the above elements to ensure that your competitive strategy has the right wheels and the road to follow.

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 Marketing Wealth Report.

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Defining the Market and Problem

What does your customer need? This is the question you and your JV partner must ask when you sit down to develop your CVS. First, you should identify the target market that your JV is focused on.

• Define your current market – You can define your market through the combination of both you and your JV partner’s separate markets. Are you hoping to serve your current customers? Will you and your JV partner combine contact lists to pursue a sales letter campaign? With a combination of current markets, you can offer both sets of customers a new and value-added product or service.  Be sure to tap into this existing market.

• Create a new market – Will your JV create new markets though the development of a new product or service? You may find that your combined forces will open new venues of market sectors that you have not tapped into before and even fill a needed niche market.

However you characterize the market for your JV, you will need to define and specify the problem or need of the customers within that market. Do your customers need a particular service to be performed quickly? Does your market demand your JV product for household needs? Technology needs? Lifestyle needs? Be sure you know how to address the needs of your customer before you create your CVS.

Develop a Solution

With your marked identified and the problem clearly defined, you must then develop an innovative solution that your market will want to buy. Your solution should encompass the strengths of both you and your JV partner. The market solution is the reason you joined forces in the first place, right? 

It is necessary that the product or service solution that you offer your market have these three elements:

1. Innovative Idea – The solution you present to your potential customers should be innovative. Have you developed a better mousetrap? Is your service something completely new? Whether your JV offers a product, service, or both, your solution should be interesting and innovative so that customers will be attracted to the idea.

2. Competitor Differentiation – Why should your market buy your product or service? Make sure you offer your customers a good reason to buy from you, such as faster service, better quality, lower price, etc.

3. Value Proposition – And what, ultimately, is the value to the customer? Present to them your CVS in such a way that they understand the value they receive when they make a purchase. Customers want to feel good about spending money, and knowing they received value is one of the best ways to make them feel good.

Your successful JV depends on your ability to meet the needs of a defined market. If you have formed a JV, take these steps to assure that your product or service has a Customer Value Solution.

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 Marketing Wealth Report.

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1. Listen and Understand

Communication between you and your JV partner is a must. But that doesn’t mean that you bring your problems to the attention of your JV partner. It also means listening to their issues as well. You need to feed your JV partner psychologically by addressing their interests, wants, and needs. 

Listen carefully to what your partner has to say about the progress of your venture. Do they sound fed up? Are they excited and enthusiastic? Listening well can give you clues as to what you may need to do in order to keep your JV partnership thriving.

2. Empowerment

Empower your JV partner. That means trusting them to do what they say they can accomplish and trusting them to make good decisions. Don’t try to take the lead in every task that needs to be done for the benefit of the JV. Allow your partner room to soar and run with their talents.

3. ‘Tis Better to Give

Give as well as receive in your JV relationship. Partners who give emotionally, physically, financially, and socially are more likely to experience success. Give of your time to perform necessary tasks pertaining to the JV, such as bookkeeping, bundling and packaging products, or even making sales calls. Make sure your partner knows you are willing and able to share the load associated with your JV.

4. Inspiration and Motivation

Find out the strengths of your JV partner and encourage them. They may be a great salesperson, so encourage and inspire them to take the lead in acquiring leads and new customers. And don’t forget the rewards for a job well done. Motivate yourselves to reach a milestone by promising a celebration dinner at a fancy restaurant, for instance.

5. Appreciation

Don’t forget that people want to be recognized for the jobs they perform. A pat on the back can go a long way in showing your appreciation for the hard work your JV partner has put into the endeavor. Write a note of thanks for accepting and performing a particularly ugly task that neither of you wanted to do. Tell your partner you appreciate them for their customer service and care issues relating to the JV. Without ample appreciation, your JV partner may feel that you take them for granted, but nurturing the relationship will lead to benefits to both parties.

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 Marketing Wealth Report.

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1. Share Office Space

Sharing a space is a great way to save bundles of money on leasing expenses. Whether your business works in an office, retail store, or small industrial space, there are opportunities to mingle you and your JV partner’s business to gain synergy in your JV endeavors.

You and your JV partner could lease a single retail store if you both sell products that complement each other. For instance, you may have a bakery that specializes in cupcakes while your JV partner makes and sells artistic greeting cards and other gift items.  Sharing a single space can allow your customer to munch their cupcake treats while browsing the gift items.  If you don’t think that will work, just consider any Starbucks coffee shop and all the gift items they present their customers even before they reach the order counter.

2. Share Advertisement Space

Advertising can be a large portion of any business’s marketing budget. If you’ve ever purchased an ad in a newspaper, magazine, or even a theatre program, you know that little 2 X 2 inch space is a hefty investment. Why not design an ad with your JV partner that highlights both your services and products and even bundles items? By splitting the cost, you could even upgrade your ad to a bigger size and even add color to get more attention than two smaller, separate ad boxes.   

3. Co-Author Articles

Is there a trade publication that you and your JV partner could query? Try co-authoring an article to be published in a trade journal or other relevant magazine. Even if you don’t own businesses in the same industry you could write about a topic that highlights your JV efforts and how it affects your industry. Your article can gather much attention to your respective businesses or to your JV endeavors, and it spotlights you and your JV partner as an expert on the topic you authored. 

4. Create a New Co-Publication

Is there no trade journal for either of your businesses? Create one! You may have found a niche in your JV efforts that have a wide potential audience. Consider publishing a new trade journal, magazine, or online web journal.

5. Host Seminars

One popular way to gain customers is to host a class or seminar. Consider co-hosting a seminar where you both can discuss important topics in your field and make presentations about how you and your JV partner can benefit customers. 

A JV partnership can be more than strictly a way to bundle products and services. Use these ideas and think of other creative ways you and a JV partner can benefit from combining forces.

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 Marketing Wealth Report.

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Many lucky first-time JV partners turn out to be a good match, like two peas in a pod.  They understand the issues at hand, are willing to discuss important topics, and know how to approach their JV partner to get things resolved. However, many JV partners have personality differences that end up like apples and oranges grown from different trees in different parts of the country. If yours falls into this latter category, make sure you have a communication strategy in hand so that you and your JV partner can find the best ways to succeed.

Start Easy

Your joint venture doesn’t have to be complicated. If you think a JV partnership could be a great long-term arrangement with another business, but aren’t sure about working with the owner, find a small initial project for the two of you to try. Even if it is something you could do yourself, such as designing a brochure or writing a sales letter, sharing the responsibility of an easy task can break the proverbial ice and get your JV relationship on the right track.

Arrange Regular Meetings

Since communication is the key to success between you and your JV partner, be sure to arrange regular meetings where you can discuss your plan or strategy and make decisions where necessary. This may be more frequent at the beginning of your JV partnership, such as two to three times a week depending how complicated your arrangement and strategy is. Then once your strategy is in full motion, don’t neglect to continue meeting possibly once or twice a month to stay on the same page.

Share All Possible Information

Don’t be stingy with information when you and your JV partner meet. Be sure to share all-important information about your JV partnership strategy and results, such as bookkeeping records, customer contact lists, and expense receipts. Feelings can be hurt, suspicions may arise, and the JV partnership could even dissolve if your partner discovered you held back information, or vice versa.

Be Flexible

A JV partnership requires a great deal of flexibility. You may end up taking tasks you don’t want or even discover that your JV goals will take longer to achieve due to your partner’s limited time and resources. But remaining flexible shows your JV partner that you are committed to long-term success and are willing to do what it takes to make the venture work.

Joint ventures depend upon good relationships. Take the steps necessary to be flexible and open with your JV partner so that your joint venture has the chance to become a success.

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 Marketing Wealth Report.

Technorati Tags: asset leverage, Entrepreneurship, joint venture marketing, Making Money, Strategic Alliances

If you and your JV partner formed a separate joint venture company, you may want to discuss having you or your partner buy the other out. If the business strategy still works, but you or your JV partnership is calling it quits, then it makes sense to try and continue the business venture. If you wish to buy out the enterprise, you could try it on your own, since the business flow has already been established, or you could try to recruit another JV partner to keep the new business going.

Intellectual Property

Did you and your JV partner share intellectual or proprietary information? You will want to discuss how to unbundle your respective proprietary products or services and even sign a non-disclosure agreement (NDA) to assure that important business secrets are not revealed on either side of the JV partnership. 

Confidential Information

During your JV partnership, you may have shared some confidential information about you personally and/or business. Talk with your JV partner during your closing discussions to assure that certain information concerning you, your business, or your business clients does not get exposed. And, of course, be willing to keep the secrets of your JV partner as well.

Future Income and Expenses

Even if you and your JV partner dissolve the venture today, there may still be some residual business that must be handled and agreed upon. Determine who is entitled to future residual income from the JV activities, and who is responsible for making payments to unpaid vendors. You will also need to decide who will handle the bookkeeping of the future income and expenses if the activities do go on. 

Even if you and your JV partner drew up an exceptional JV agreement and included an exit clause and strategy, there will most likely be some issues that need to be resolved. A good plan in the beginning can help your exit be more smooth and painless, but continue your dissolution with a positive attitude and business-like manner so that your closing negotiations will come to a friendly conclusion. Working to keep trust between you and your JV partner can go a long way to continuing good relations with others in your business community.

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 Marketing Wealth Report.

Technorati Tags: asset leverage, Entrepreneurship, joint venture marketing, Making Money, Strategic Alliances