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Joint ventures typically involve two or more businesses coming together in some sort of partnership agreement for the purpose of expanding sales and boosting bottom lines. Most joint ventures are somewhat limited in terms of their scope and time frame, with most considered a short-term agreement that does not necessarily constitute its own accounting system.

However, as longer joint ventures become more popular, it is important to understand your accounting options in joint ventures to ensure the financial interests of both JV partners are properly protected.

Separate Books

Even if you determine that separate books are the best option for your joint venture, you will typically open a joint bank account to hold the investment of each JV partner, as well as any profits that are made during the agreement. This type of accounting is characterized by the following:

• Contributions by each partner are debited to the joint bank account and credited to individual accounts of each partner

• Expenses for the joint venture are directly debited from the joint account

• Sales are directly credited to the joint account

• At the end of the joint venture, the profit or loss will be directly transferred into the personal accounts of the JV partners

• The account will be closed, with equal disbursements made to all of the JV partners

While this tends to be the easiest type of accounting for joint ventures, it is usually reserved for those partnerships that will be perpetuated for some time. Short-term agreements will often pass on separate books in favor of maintaining the joint venture records within each partner’s own record-keeping system.

No Separate Books

When JV partners determine that a separate account for the joint venture is not necessary, they will need to account for the transactions under the joint venture partnership on their own. This means that each partner will open an account for the joint venture and one for his partner. This allows for accounting of expenses made on either partner’s account, as well as those done through the joint venture itself.

When it is time to balance the books, each joint venture partner submits his own ledgers to ensure the numbers all match up. This helps to hold each partner accountable while maintaining the integrity of the separate joint venture. While this accounting system may be slightly more complex, there is no separate account to close out at the end of the joint venture, which is why it tends to be a preferable method for agreements that are made for a shorter term. Profits and losses are simply tallied up, and each JV partner will record his own portion.

Like any business transaction, it is important to maintain proper books during the joint venture process. Whether you choose separate books or have each partner account for the joint venture transactions in his own books, this process is paramount to keeping the integrity of the joint venture intact. When partners are held accountable for the bookkeeping of the joint venture agreement, everyone can rest assured that individual interests, as well as the financial interests of the joint venture, are properly protected.

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 report on Joint Venture Marketing.

A joint venture is only as good as the results it brings to your bottom line. The first step in a successful JV is to choose your prospective partners carefully based on the mutual benefits you both stand to receive from your partnership. The next step is to assess your arrangement periodically to ensure you are getting more out of the agreement than you invest. We have tips to help you evaluate your joint venture and determine whether it is working effectively for you.

Your Customer Base

A growing customer base is one of the easiest ways to tell if your joint venture is effective for your business. The primary purpose of most JV’s is to bring more customers to your website or through the doors of your business. If you see a steady increase in your customer base since your joint venture began, the arrangement is probably working well for your business. Look at the number of customers clicking on your website every day, or gauge the business of your store for a week or two to determine whether your JV is doing the job in bringing more customers to you.

Your Profits

While joint ventures are primarily designed to bring more customers to your business, increased sales indicate that the customers driven to your website are legitimately interested in the goods or services you offer. When your sales increase, you know you are getting not just a customer base, but also a targeted base from your efforts. This ensures you get the biggest bang for your marketing buck by attracting customers that are more likely to buy from you in the first place.

Your Marketing Budget

The idea behind a joint venture is to get the best value for your marketing dollar. If you are seeing an exponential increase in customers and sales, with a much smaller increase to your advertising budget, your joint venture is working well. If you find yourself spending more and more on your advertising campaigns, it’s time to either meet with your JV partners to revamp your strategy or dissolve your partnership altogether in favor of a more lucrative option.

Your Relationship

When you and your JV partners share similar goals, it is much easier to make your venture work to the benefit of all businesses involved in the arrangement. Meet with your partners regularly to discuss the status of the joint venture and whether the current track appears to be the most beneficial one. When you can work harmoniously with your JV partners, it is much more likely that you can tweak your system when it doesn’t seem to be working effectively any longer.

Joint ventures are a popular, profitable way to build your business as long as they continue to work in your favor. Through periodic evaluations, you can decide if your JV is continuing to work for you and make necessary adjustments when necessary for the greatest value from your efforts.

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 report on Joint Venture Marketing.

Have you tried unsuccessfully to gain a joint venture partner? Perhaps you have given presentations and proposals to other business owners who genuinely were not interested in a JV. Or perhaps you didn’t highlight your own credibility enough. Sometimes a great business idea for a JV is not enough to convince another entrepreneur or business owner to join up. You must earn their trust as a credible potential partner and rainmaker.

Savvy business owners and entrepreneurs are choosy about with whom they spend their time and build alliances. Association with other successful business owners may give them additional credibility and status. Therefore, it’s not just business success, but also the reputation at stake as well.

Subsequently, with this type of business owner with whom you want to partner on a joint venture, you must earn his trust as a credible business owner yourself. Success breeds success, as they say.  If you are after a savvy business owner who is careful with his associations, here are some things you might use to gain his trust:

Client Testimonials

Use your own customer testimonials. Don’t just tout your own success; let your customers do it for you. Your customers and clients can really help your company shine. Whether you provide the best customer service, or produce and sell the best widget, customer testimonials will be the driving force that tells other customers, and your potential JV partner, that you do quality work. Get as many testimonials as you can. A few are good, but 10 shining testimonials are great.

Press Exposure

What have you done in your business that has been noticed by the press? Keep a clip file of any and all media about your business. Perhaps you were interviewed by the local major newspaper or gave a radio interview. And better yet, you got a stellar review about your business in a newspaper or magazine. Clip those articles and reviews and show them to your potential JV partner. Again, praise about your business ability from others gives you additional and heightened credibility.

Endorsements

Positive press is nice, but endorsements from other reputable businesses in your industry or field of business can give you a lot of credibility. People with high status and reputation that say good things about your work are a boost toward greater success. For instance, if you invented a small product and famous pitchman, Billy Mays, chose it to be in his next infomercial, you and your product just enjoyed a jolt of credibility from his endorsement.

A potential JV partner with a discerning eye and a sense for reputation may be one of the toughest pitches you’ll make for a business arrangement. But if you feel that their status, business acumen, and product are a good fit for a JV with you, then it’s worth the effort.  Be sure to appeal to their sense of reputation and status by highlighting your own.

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.

Be careful of what you wish for, as you just might get it – with a joint venture! While working on your small business, you may find you want to grow, but are limited by the resources, money, contacts, or whatever business element that holds you at bay. Expanding small business takes strategy, time, and most importantly, money. But what if you had help with your expansion? What if you paired up with a joint venture partner who has the resources your business needs to get revved up and going at full speed?

Many business owners view JVs as a way to make a little income with little work. The truth is that JV partners get out what they put into it. With the right partner, your JV could take off like a turbo jet. But if you and your JV partner really want to expand into big business with your venture, here are a few ways you can do it:

Find the Niche

A successful, long-running business fills a needed niche. A niche, in architectural terms, is a receded empty space in a wall or corner. A good designer can “fill” the niche with the right art or other complementary object. Your job in business is to identify the “empty” space in an industry that you can fill with your product or service and is in demand by consumers. By specializing in a defined niche, you can take the lion’s share of the market.

Open New Locations

Your JV may be so popular and successful that you must expand by opening new locations. This may be simply opening chain stores within your local community or finding new retail stores across a region or country. This type of expansion usually requires a great deal of capital and additional HR staff to manage the locations and handle additional staffing.  Be sure your JV agreement is set up with a combined strategy for capital and JV staff management.

Acquire Additional Businesses

Rather than expanding one-by-one with new stores, you and your JV partner may choose the strategy of acquisition. By buying out an existing business, you can already have in place the locations, equipment, staff, etc., you need to hit the ground running. Again, acquisitions must be handled with a great deal of available capital or financing capability, and plenty of analysis with the use of ROI and feasibility reports. 

Go Global

If you have discovered the right niche that is in big demand, you may want to take your JV and focus on global expansion. Prepare your JV widget for mass production and exporting, or tailor your service for international sales. With a successful global expansion strategy, you can really see your business expand and profits jump.

There is no harm in thinking big. When you form a JV, don’t just consider the short-term gain from a small venture. Look ahead at the possibilities of big expansion for both you and your JV partner by combining your efforts and resources on a national or international level.

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.

Have you ever been afraid of success? Why is it that when presented with opportunities that can make your business grow or earn you more profit, most small business owners will reject it because it is too hard or takes too much effort? Your attitude toward making your business grow and become more successful plays a big part in how and if you succeed. That is why when presented with the option for a joint venture you should consider these three things that could make or break your success.

Carry a Positive Attitude

An attitude that says, “I hate that I have to go to work today!” will be your demise. Why are you in business if you dislike it so much? Only those entrepreneurs and small business owners that absolutely love their job will make it a success. Attitude carries over onto employees as well. If the owner is unhappy, the employees will be unhappy as well and produce less. 

That is why your attitude needs to be in the right place. A positive attitude is what will make your business and any potential JV a success. Not your skill. Not luck. Not your extensive Rolodex. Give it ATTITUDE!

Deserve It

So many people carry around guilt or other psychological issues that weigh down their ability to create success.  Perhaps they had a rough childhood.  Or did not go to or finish college.  Perhaps a few failed marriages can get a business owner in a mindset that he’s not worthy.  With this kind of mindset, it is easy to see how someone may feel afraid of accomplishment or actually succeeding.

The fact is that everyone is worthy. And though none of us deserve success by default, as though the world owes us a living, it is up to us individually to accept our worthiness. Accept that were you to succeed in a joint venture – you deserve it! There is nothing morally, ethically, or even legally wrong with creating JV success. Go get it!

Release the Anchors

Sometimes we just need to let go. The issues we carry around with us can feel as heavy as the weight of the world. You may owe the IRS thousands of dollars in back taxes. Or perhaps your marriage is failing and the failure is creeping into your business. Or worse yet, you’re constantly get nagged by your spouse, parents, or friends about this ridiculous notion of running a business. Whatever anchors you carry with you must be left at the door when you go to work. 

Anchors, like those on a ship, will keep you stagnate and planted in one place without forward momentum. You must learn to let go of the issues that prevent your momentum and ignore those who do not believe. Only you have the power to believe in yourself.
Success is never easy.  But a positive attitude is always free. With your freedom from anchors that drag you down and a deserving attitude, you are unobstructed to move forward and enjoy a successful JV partnership.

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.

It’s time to dispel some of the myths that surround the issue of joint ventures. JVs are in fact a highly sought after form of business that can create great success and even wealth for those involved. However, as with any unfamiliar business venture, JVs sometimes get an undeserving bad rap. Let’s look at the most common myths of JVs.

Myth 1: JVs Are Complicated

If you were a top market share technology company trying to form a JV in another continent with another top communication company to develop a new cell phone and wireless technology, then yes, a JV could get complicated. But that type of JV is very rare.  Let’s face it – you’re a small business owner or entrepreneur who’s just trying to expand your business or business idea. 

JVs do not have to be complicated. You could form a JV where you simply perform cross marketing of each other’s products.  Or perhaps you share office or production facilities.  The fact is that JVs can be simple and take little effort.

Myth 2: JVs Require All My Time and Effort

Actually, a JV may take less time and effort than you put into your own business. A simple JV agreement may require a once-a-month sales letter mailing, or simply displaying your JV’s products in your store. The point of sharing customer contacts and mailing lists is to get more sales than doing it alone, right?

Also, your JV partner may have complementary strengths that make the entire process easier.  You may focus on the marketing and accounting functions while your JV partner does the production, packaging and distribution. How much more time would it take if you did all that yourself?

Myth 3: JVs Are High Risk and a Money Losing Prospect

A simple JV agreement where you earn a small portion of a sale of your JV partner’s product is virtually no risk.  In an affiliate type JV, you only make money at the time of sale and do not put any of your own money on the line. This is a simple example of a low risk JV, but the fact is when you form a JV, you agree to share the financial risk with your JV partner. You take a financial risk every day when you open your business doors, right?  The key is to control the risk.  JVs are a good way to control the risk and share the expenses.

Myth 4: You Will Lose Customers

If you are recommending products and services that are beneficial to your customers, doesn’t that create customer loyalty?  Your customers are not going to buy from you every time they go shopping or need your service. But by forming a JV that presents additional and quality services and products to your current customers, you have given them added value. Customers appreciate that and will reward you with return business.

JVs are one of the easiest and most successful forms of business partnership. When two businesses enter a JV agreement and agree to prudently control the financial risks and share resources, there is a high risk of success. Go get yours today!

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.

In our quest to develop the perfect small business, we as entrepreneurs often ask ourselves what we can do to make running a business easier.  We find we like to play our strengths, be it in sales or managing employees, and we spend less time on the tasks we despise, perhaps accounting or marketing.  By asking the question, we may discover that a joint venture is a perfect way to rid ourselves of the struggling tasks.

By performing a detailed search for the perfect JV partner, you may be able to make your business thrive by focusing on the business duties in which you excel.  But how do you find the perfect JV partner?  You may find one, a few, or even many potential JV partners, but before you start on the path to joint venture land stop to consider these important keys to identify the ideal partner.

1. Complementary Strengths

Remember, you may want to find an ideal JV partner who has strengths complimentary to yours.  You may want to focus on the sales portion of your JV while your partner focuses on marketing.  What good does it do you if you both want to perform the same tasks?  Look for a JV partner who can compliment your working style so you both get more done.

2. Similar Goals and Values

What are your goals and what do you value in business?  Profit?  Making a difference?  Producing jobs for local workers?  Be mindful of the goals and values of your potential JV partner because if yours and his do not align, you could end up with friction in the future.  A JV requires that both partners be on the same page as far as your goals and how you want to achieve them.

And in regards to sharing duties and profits on a joint venture, what do you value?  Do you both want a short-term JV for a specific project?  Or are you both looking for a long-term lasting and successful partnership?  Get those values and goals in line or a rocky JV you will have.

3. Compatibility

Similar to a marriage, you will need to be sure that you and your potential JV partner are compatible.  You may find that your potential JV partner is an independent soul who likes to work alone and do things their way.  How would that help your business?  Or perhaps you have a family and you want a JV partner who understands your commitment to spend time with your family as often as you can.  If you team up with a JV partner who expects you to burn the proverbial midnight oil to make the JV work, you may be incompatible as partners.

Take these three key aspects of a successful joint venture and consider them carefully when evaluating a potential JV partner.  By identifying an ideal partner at the onset, you will have a much easier time making your JV 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.

One of the most challenging tasks that you will have in forming a joint venture is not finding the right partner, but making the pitch and getting them to say “yes” to your proposal.  JVs are not the usual business paradigm that many entrepreneurs and business owners are accustomed.  Whether it is a lack of knowledge or experience of JVs, other business owners may be doubtful and unconvinced of the benefits a JV can bring to them.

What should your strategy be to approach and convince a potential JV partner?  Here are three important elements to keep in mind when you begin your path to JV success:

Build a Relationship

The most important thing about forming a JV partnership is trust in each other.  Relationships are the key to any business success.  When you approach a potential JV partner, it’s important that you are likeable and sincere so that you gain the trust of the other person.

• Build rapport – Find the common ground.  What do you have in common?  Are you both in the same industry?  Did you go to the same college?  From the same state?  Find the common ground that will build a connection between the two of you.

• Make them feel important – When you give a compliment or praise, your potential JV partner you make them feel important.  Building rapport and making them feel important are great ways to get them open to your ideas.

Teach the Benefits

The best way to overcome skepticism or resistance to a JV is to teach them the benefits.  When you help your potential JV partner understand what’s in it for him, it clears a path to the “a-ha!” moment when he ponders the possibilities.

• Money money money – Hit on the lucrative points as often as you can.  Letting them know that a JV can help them make money with less effort is probably the biggest benefit they will want to know.

• Autonomy – Agreeing to a JV does not mean they are jumping in as 50/50 business partners.  They still get to keep their autonomy in running their own business.  A JV simply means they will agree to join you in a specific business deal or venture.

Pitch the Proposal and Close the Deal

Once you have a good rapport going and softened the resistance to joint ventures, you are free to move ahead with your specific proposal.  What do you want your potential JV partner to do?  Give him the broad view of the proposal and then go into specifics on how you think it will be successful. 

Don’t forget that your potential JV partner has opinions too.  Ask him what he thinks about your proposal and whether he has any ideas to add.  Giving them part ownership of the proposal will help them feel more attached to the deal.

Your JV proposal requires the steadiest of hands in convincing a potential JV partner.  Your respect and enthusiasm will go a long way in sealing the deal.

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.

If you are convinced that a joint venture can lead to great profits and other benefits, you may be on the hunt for a potential JV partner.  You have the enthusiasm, the spark, and the drive to make a joint venture work.  However, the only thing missing is a partner.  If you are going to recruit a JV partner to join your venture, you need to build an irresistible offer.

When you approach a potential partner for a joint venture deal, you’re really asking them, “Do you want to go into business together?”  You must remember that they are already in business and the real barrier you need to break down is their resistance and skepticism to joint ventures.  How do you do that?  Here are some tips you should use to build an irresistible JV offer.

Build Rapport

As a business owner or entrepreneur yourself, you know that people like to do business with other people they trust.  You must present yourself as a trustworthy and competent business partner.  Therefore, before you can even begin presenting an offer, you must present yourself.

Talk a while with your potential partner.  Perhaps treat them to a meal (all tax deductible, of course) where you can relax and get to know your potential JV partner.  Find the common ground you share, whether it is being raised in the same state, growing up cheering for the Cowboys, or being the youngest of siblings.  Your common ground is the basis for building rapport.  Find that connection that gets you both on the same level and playing field.

WIIFM?

While you are making your proposal your potential JV partner is thinking, “What’s in it for me?”  Your job, after establishing rapport, is to present exactly what’s in it for him.  Well before you meet with your potential JV partner, you must create a list of benefits that he will enjoy.  These benefits could be, but are certainly not limited to:

• More profits – Who doesn’t want to make more money in business?  Show how the JV will put more money on his bottom line.

• Less work – One great thing about JVs is the sharing of resources.  Sharing the work load means more time spent on developing his business or making money.

• Bigger customer base – Don’t forget that you both will be combining current customer bases and building a new one as well.  Get him thinking about his future marketing contact list.

Show Specific Details and Data

Don’t give vague figures and ideas like, “This will be great!  We’ll make lots of money!”  You need to show specific details about how your proposed JV will succeed.  Work up charts, graphs, tables, or any visual element that will help your target partner visualize the success of your proposal. 

Remember to keep it simple.  Though you want to provide specifics, keep the details simple to understand.  A potential partner bogged down in a mire of confusing details may not be ultimately receptive to the proposal. 

Your irresistible JV proposal is just the beginning of a potentially long-term relationship.  Take the care it needs to develop into an attractive and stimulating offer.  The result could be a “yes” on your JV proposal and great success with your venture!

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.

Your joint venture is a great way to expand business and experience additional revenue with less work.  However, in order to access additional revenue, you need to tap into existing and potentially new markets with your JV offering.  Your marketing message is one of your key strategies that will determine whether your joint venture is a success or not.

Market Research

To have a viable marketing strategy and an effective marketing message, you and your JV partner need to know what your customers need and want.  A proper market research strategy can provide valuable information and insight into the behaviors, motivations, and intentions of your customers.

Market research can be performed formally or informally.  Informal research can be performed simply by asking your existing or potential customers their opinions on a particular product or service your JV wishes to offer.  A formal market research plan, however, will be more in-depth and provide a great deal more of quantitative and qualitative data.

Your market research can help you formulate a successful marketing message with information about:

• Demographics – What is the education, income level, age, gender, etc., of your customer?

• Geography – In what areas will your joint venture product or service most likely be successful?  Metro?  Rural?  Midwest?  Coastal states?

• Business Markets – Will your product or service be more successful as a B2B or straight to consumer?  Where will your customers likely buy your product – retail stores?  Online shopping?

What Motivates Your Buyers?

When you develop your marketing message, keep in mind the motivations and behavior of your predetermined customers.  You can learn a lot about your customers’ motivations from reliable market research that tells you why customers need your product and how much they are willing to spend for it. 

Create a message that tunes in to their motivations.  Your product message should explain how it can help make life easier or better.  Do they want a cleaner house?  Environmentally “green” products?  More free time?  Better tasting food?  If you know what motivates your target consumer, you can more easily convince them to buy your product.

Testing Your Message

A marketing message is not done with the first draft.  An effective marketing message is something that is flexible and adaptable to market changes and responses.  Let’s say you have developed what you feel is a great sales copy to post on your joint venture product website.  In order to determine if it is the best message, you should test it against others.  Develop a short and long version of your sales copy.  Or even two or three sales copies with different approaches.  Use them all at once during a set sales campaign and use the statistics you gather to determine which one attracts more customers and makes more sales.  By continual testing, you can discover and develop the most effective marketing message.

Getting the word out to your customers is one of the most important key aspects of a successful JV.  Choose to focus and work with your JV partner to come up with an effective marketing message, and you will have great chance of JV 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.