Aboriginal Buying Group

Pursuing a joint venture is a great business strategy that could result in lasting profits and friendships. However, as much as we like to trust other people, especially those with whom we do business, you should always approach a potential JV partnership with a mindset of protecting yourself and your own business.

Why Protect Yourself?

Why should you want to protect yourself when entering a JV partnership? Through activities that may be intentional or accidental, you could face losses that could set your business back or even devastate it.

• Lost Income – Unscrupulous JV partners may be untrustworthy in revealing true profits resulting from the JV, or even outright steal your share of joint income.

• Lost Secrets – Your business secrets and proprietary methods and information may be susceptible if left in the wrong hands.

• Lost Employees – Your best employees may even be tempted to leave you and work for your JV partner.

• Lost Customers – Your established customer base may be swiped and convinced to switch their loyalties away from your business.

• Lost Reputation – In a worst-case JV partnership, you and your business may face malicious attacks or unfounded accusations.

Taking a look at this list should give you plenty of incentive to protect yourself and your business in every step you take. There are no guarantees that your business partners will always be upfront, forthright, or even ethical with you. 

What You Should Include in a JV Agreement

The number one thing to remember is to ALWAYS get an agreement in writing not only to protect you, but also to ensure there are no misunderstandings. Here are just a few important items you should include in a JV agreement:

• NDA – If you have any proprietary secrets or intellectual property you want protected, include a Non-Disclosure Agreement. An NDA will give you legal protection in the case where your business secrets are revealed or stolen.

• Indemnity – Another set of protections you may want to include in a JV agreement is indemnity. An indemnification inclusion will indemnify or hold harmless you or any of your business associates, managers, or even your family, from any liabilities, claims, or lawsuits resulting from the other party.

• Other Liability – Know how your JV will be liable for other business practices, such as customer returns or vendor accounts payable.

• Term of Agreement – Your JV agreement should include whether your JV is expected to run in perpetuity or if there is a specific timeframe for the venture. This portion could be written as a “let’s see how it goes” condition, with a limited initial term that would extend if both JV partners are satisfied with the venture.

• Money Handling – Set up in writing who will handle all the monetary transactions and how information will be fully disclosed and shared between JV partners. This includes all sales, chargebacks, refunds, accounts payable, and profit distribution.

A joint venture should be a pleasant and profitable experience for both parties.  But setting up some of these important protection clauses before your JV begins can save a lot of heartache and unpleasant business experiences.

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.

Building a successful joint venture requires strategy. However, there is a process, which you and your JV partner must follow in order to create a winning competitive strategy against current and potential competitors. Read on to find out how your JV can stand apart from the crowd with a winning competitive strategy.

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.