As CEOs of our respective companies, we all know too well that to get our business to the next level requires a great team. What good is growing sales when you do not have a fulfillment and operations team to deliver your product or service to the market? What few companies consider part of their team and their growth strategy is forming and nurturing joint ventures to grow their business faster.
A joint venture is an alliance that is formed between two or more companies that all market to the same target market to jointly (hence the word joint venture) market and sell the collective products and services to the target market. In other words, you are in essence providing a one-stop shop for your customers to buy from by promoting each other’s businesses. This article will cover how to target, form, and nurture joint venture partnerships to out your growth strategy on a meteoric rise.
Joint Venture Targeting
In marketing, the most important aspect to know before you make one phone is to know whom your ideal customer. The same principle applies when targeted who you would like to forma joint venture with to grow your business. The first element to consider is to make a list of products and services your ideal customer for your business buys on a regular basis. For example, if you own an insurance business that sells business insurance to medium sized businesses, those mid-sized businesses also buy health insurance, bookkeeping services, IT outsourcing services, office supplies, etc.
The next step is to take the list you created and fill it in with people you already know in your network that already is in that business. In a joint venture partnership, you are not only asking your partner to promote your business to their network but you will also be endorsing their company to your customers as well. This is where the synergy of a joint venture happens. It is a lot easier to forma joint venture with someone you know, like, and trust versus someone you are just getting to know.
Forming You Joint Venture (JV) Partnership
The nice thing about a joint venture partnership as opposed to a business partner are that it can be easily formed and broken. However, what the two do have in common is that everything must be in writing. In other words, will there be revenue sharing or a referral fee? Will the partnership be exclusive or will you be allowed to bring on competitors? How will the joint venture be broken and what are the minimum performance standards of each party?
The most important element in a joint venture agreement, other than the compensation to each party for promoting each other’s business, is what level of activity will be performed. For example, in our business, our JV partners must host at least one webinar per quarter where we each provide value through education each other’s customers based on what each of the JV partner’s business does. As part of those joint webinars, we expect each partner to bring in no less than ten (10) of their customers to the webinar. If they do not promote the webinar, then we terminate the joint venture relationship.
Nurturing Your JV Partnerships
In this busy world we live in with all of the demand our business asks of us, often times the reason a JV relationship fails is because it is not being nurtured. The most important work in a JV relationship is the word “relationship”. Let’s face it, you and your joint venture partners will be endorsing and promoting each other’s businesses.
Our team meets once a quarter over lunch to discuss what is going on in each other’s businesses and to plan our promotional events for the next quarter. We also take time to spend quality time with each other’s families in order to get to know them better. As great as telephones, email, and GoToWebinar are, nothing beats deepening a relationship better than face-to-face meetings.
Finally, the true power of JVs is promoting each other’s businesses to your customers. If your business serves 100 customers and your JV’s business services 100, you could potentially double your customer list within a few months by being endorsed by your partners. If you are looking to grow your business faster, then I highly recommend joint venture partnerships.
Cornerstone Consulting has developed the 30-Minute “Business Accelerator” which we conduct over the phone with you. Here is what we can accomplish together in this fast-paced, zero-nonsense session:
- Lead Magnet: According to the Harvard Business Review, less than 3% of companies in America can articulate their competitive advantage to their market. We will review your marketing material and make any modification necessary to attract more leads to your business, on demand.
- Revenue Boost: Frustrated by your sales numbers the past few years? We have helped hundreds of clients achieve an immediate boost to sales using one strategy that works like a champ every time. We will detail the strategy out for you in detail and create a roadmap on how to easily implement it.
- Increase Employee Performance: Are you frustrated by the performance of one (or more) of your employees? We will show you the two biggest motivators for your employees and how to use them to boost employee performance.
The 30 Minute Business Accelerator is conducted by the CEO of our company, Charles Alvarez, who has worked with more than 200 corporations including Shell, Enterprise Partners, Crestwood Midstream Partners and many well-known privately held businesses in the Houston area. Please be assured that this consultation will not be a thinly disguised sales presentation; it will consist of the best intelligence Charles can supply in a thirty minute time span. There is no charge for this, but please be advised that the call must be strictly limited to 30 minutes.
To secure a time for this consultation, please click here to access our calendar to schedule your time. After you select a date and time, we will provide you with a pre-consultation questionnaire that will prepare both you and us to get you the maximum value in the shortest amount of time.