Joint venture (JV) partnerships are a great way to boost your business. It’s amazing how forming an alliance with others who sell products and/or services that are complementary to yours to the same audience can set a fire under your business. By forming a JV partnership, you’ll create new marketing channels, tear down competitive barriers, and improve productivity.
A well-formed JV partnership will:
Expand Your Market Base
As soon as you form the JV partnership you have expanded your reach outside of your own market base into the JV partner’s market base. This can give you access to hundreds of new potential clients. It takes a lot of trust to tell your connections about someone else; it’s important that you fully understand the repercussions of the partnership. You’ll expand your market base, and so will they.
Help You Develop New Products/Services
They often say that two heads are better than one, and that could not be more true when considering the benefits of JV partnerships for business owners. Creating a new product with another entity can spark more creativity and new ideas than you thought possible. Combining the years of experience and skills of each partner will make all the products and services better than ever.
Enhance Your Overall Skill Set
You’re good at organizing; the partner is creative. You’re good at the numbers, while your partner is good at improving the look and feel of your online real-estate. Both offer something important to the partnership and together it’s a one-two punch that can’t be beat. Most partnerships always say that they are better together than apart.
Increase Your Credibility
People like to buy from those who they know, like and trust. By connecting yourself to someone who is a mover and a shaker in certain circles, your credibility instantly goes up to meet theirs and vice versa. You may have a close following among your connections, and when you introduce this new JV partner they will share in that close connection that you’ve already formed, and vice versa.
Build Your Contact Lists
At the core of the JV partnership is the desire to expand your reach and have access to the other person’s contact list. As time goes on, more and more of their contacts will become your contacts and you’ll build your contact list faster due to that connection. The opposite is true as well. Your partner will benefit from your connections as much as you will benefit from theirs.
To succeed in JV partnerships, it’s important that you choose the right partners and set clear goals. Put everything in writing, and make sure that you choose your partnerships well. You want to be proud of your connections and you can’t do that if you align yourself with people that you don’t trust. If you trust them, and have studied them enough to know their values, it is likely the JV partnership will be successful all the way around. Boosting your business with a joint venture is the icing on the cake.