Joint ventures, or JVs, are becoming increasingly popular in business today. They have shown an effective way to increase company size and profits -- even for businesses that have no product to sell.
A JV is the entity created when two businesses, individuals, companies or other legal entities enter into an agreement. The joint venture benefits both parties by combining skills, customer bases, capital or other products or services.
The concept of a joint venture is pretty simple when you're the one with the products. Obviously you'd want to look for a partner who can help you sell more products. Perhaps they'll have an established customer base you can use in return for a portion of the profits. Or, perhaps they have a complimenting product that you can sell as a package. The benefits to both sides are fairly easy to see and explain.
But what if you don't have a product to sell? That might make it a little tougher to see how a JV could benefit you -- or how joining with you could benefit a potential partner. If you aren't selling a product, you're probably selling a service or skill. If this is true, you are called a "dealmaker."
As a dealmaker, you must first find a business partner with a product that compliments your skills. For example, if you are a savvy marketing expert who knows how to manipulate the Internet, you would do well to find a company with a good product for sale online but a lackluster marketing campaign. Do multiple Web searches for great product ideas with boring websites and imagine ways you could help them improve.
Once you determine how you can benefit a potential partner, it's time to think about what you will ask for in return. When you think of a deal that sounds fair to you, write out a proposal to present to the company. If they accept, then it's time to begin the process of creating a joint venture, including writing a business plan, a binding legal contract and an exit strategy.
Another way to enter into a joint venture when you don't sell products is to partner with someone who wants to sell their products through your business. Stocking the shelves of a conventional store is costly and difficult, but when you are part of a joint venture, your partner provides all that for you.
Joint venture marketing, or JVM, is also becoming more popular as more and more people move to working online. JVM allows you to download free e-materials to sell on your website.
There are plenty of these free products available online. Many of them are labeled as Private Label Rights or Master Resell Rights products, meaning they are already packaged and ready to sell. All you have to do is add your contact information and it's ready to go.
The benefit to you, as the small business owner, is offering a product on your site, and the benefit to the creator of the product is free advertising. You might also have an agreement that the product's provider receives a portion of the sales of the package on your site.
The Internet has created a whole new universe of joint venture opportunities for those seeking them. JV collaborative groups comprise Internet marketers who work together to promote each other. When they all advertise together and promote each other, they each reach exponentially more customers than they can on their own. If you become a member of one of these collaboratives, visitors might be required to sign up for the newsletter or e-book you offer, helping to create a large list of subscribers. Within these products you send your visitors, you can include your ads and those of your JV partners as well.
These days, even businesses without products can benefit from entering into joint ventures. Take caution, however, because in the Internet age it is more important than ever to read the small print. Before entering into any joint venture agreement, make sure you know what is expected of you and what you can expect to receive. Once you are knowledgeable about them, joint ventures can be a great avenue for a growing business.
