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Joint ventures have long been touted as a smart and potentially prosperous business strategy.  Working in tandem with another business can bring big profits and open successful new markets. But before you ever consider approaching another business for a joint venture, you must determine whether you and your business are ready. 

A JV can mean major changes to your business operations. It may mean changing your overall business strategy and goals, as well as adjusting and possibly expanding your employees and workers to achieve those goals.  It could also mean realigning your business resources to help assure JV success.  Are you ready for these changes?

If you are interested in pursuing a joint venture, give yourself some time to sit down and perform a self-analysis of your situation and readiness for such a venture. Here are some important questions you might want to ask:

What Are My Strengths & Weaknesses?

This is a big question that can determine what you bring to the table in a joint venture. Do you have particular expertise in technology or in sales? Are you a hindrance in organization and managing money? You need to know what you do best and where you need improvement. This will allow you to help narrow a potential JV partner who could help with your weaknesses and to whom you could offer benefits to as well.

Can A JV Help Me Compete With Other Businesses?

Are you struggling with competition? If you are trying to stand out from other competing businesses, you might think of ways that a JV can help you emerge as a leader in your industry. Rather than focusing on marketing directly against a competitor, a JV may offer ways that help attract new customers and help you stand apart from the crowd.

Am I Cooperative?

Do you consider yourself a person who is easy to get along with? A JV requires flexibility and cooperation between partners. If you like to only do things your way and run your business with an iron fist, you may not be a good candidate for a JV. However, if you are open to new ideas, like to explore creative ways to improve business, and enjoy working with other people, you may have an aptitude that fits well with a joint venture partnership.

Are My Employees Open To a New Venture?

If you have a business with employees, you should think of their attitude and morale if presented with a joint venture. Some employees and managers may view a JV as a threat to their job security. Or they may not like the idea and jump ship after you announce a JV to them. Be sure that your employees are open and ready for changes that may be necessary to help a JV become a success by talking to them beforehand and getting their input.

Your potential JV awaits you only if you know you are ready to enter into one. Get yourself mentally prepared and your business framed for a JV. With the right attitude from everyone involved, you will have the support you need to move forward with a JV idea.

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.

There are at least a million and one ways to form a joint venture and work together in business. One of the fastest-growing business fields is e-business or online commerce.  With an e-business, you can work with virtually any potential JV partner anywhere in the world to develop, maintain, and grow your online presence and profits.

Here are some proven and wise strategies you should consider when starting an e-business JV:

1. Decide What Your JV Will Offer

Part of your JV planning process is brainstorming and deciding what your e-business will offer customers and how you will deliver it. Will it be a service or product business? If it is a service, who will provide it? Will it be a service given in person or presented from the JV business website? 

If product oriented, will it be co-manufactured or assembled? What shopping cart software will you use? Who will manage the orders? Who manages the supply chain and shipping? Will you offer more products as the e-business grows? These are important questions and must be answered in order to form an effective online business management strategy.

2. E-Business Process Management

Your e-business process management must align with your business objectives. Once you are able to visualize your business objectives, you can begin setting up a process management system that can help your JV achieve those objectives.

Your e-business process management system is the tool or tools your joint venture partnership chooses that will deliberately and systematically manage your e-business process. A large part of the process management is the software and hardware you decide to use that manages and maintains your website. Where will your e-business website be hosted? On your own server or at a third party? Who will design the website and what bells and whistles will be used? How will your customers be managed throughout their browsing experience from the landing page to checkout? There are many expensive, cheap, and free tools available that can help you run and manage your joint venture e-business. Find the ones that work for your e-business and budget.

3. Mind Your SEO

A successful online business, just like a brick and mortar shop, must be able to attract customers through advertising and from web searches. In addition to paid advertising your website must be built and managed with search engine optimization, or SEO, in mind. 

SEO is a process where you make your e-business website easy to find for your customers who search for your products or services through keywords on a search engine such as Google. Here are just a few of the important elements your website should have to help it get noticed by customers:

• Well-designed – Your e-business website should be easy to read and navigate. Don’t fill it up with too many graphics or try to put too much information on one page. Make sure your readers can easily understand your text copy and that all images are used sparingly.

• Keywords – Saturated throughout your website should be important keywords that pertain to your business. Keywords are the lifeline between your website and search engines.

• Links – A website is ranked not only by how relevant the keywords, but also by how popular it is. Try to get links to your website from other popular websites such as Yahoo! business directories, review sites, message boards, and from other online businesses.

Be sure to formulate a good online business joint venture strategy that will help your internet presence grow and become profitable.

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.

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.

All around our economy, we find evidence of successful joint ventures. Look in the newspaper. Watch it on the news. Find it on billboards and advertisements. The most popular JVs have exerted a large influence on our society, our economy, as well as technological developments. 

In America, and in most advanced countries in the world where the government has great influence and regulation over mergers and acquisitions, companies find that joint ventures are a great way to join forces without the strict government oversight. Below are some of the examples of joint ventures and the results you see almost every day.

Sony and Ericsson’s Joint Venture

Japanese electronics giant, Sony, has been a leading manufacturer of consumer electronics, including audio, video, and communications, for decades. Along with their established manufacturing pervasiveness, Sony has had a global marketing dominance in all their products, including motion pictures and music recordings. With all their marketing expertise, they still needed an innovative technology expert to develop a marketing relationship. 

Enter the Swedish technology expert, Ericsson. Ericsson specialized in developing innovative telecommunications equipment for mobile networks. In 2001, Sony and Ericsson teamed up in a 50-50 joint venture now known worldwide as Sony Ericsson to develop and establish their innovative brand as the most attractive and dominant in the mobile handset industry. Their successful joint venture has resulted in the development, production, and marketing of some of the best handheld mobile phones available today.

Verizon and Vodafone’s JV Endeavors

And continuing with the mobile communications industry, who hasn’t seen the nice guy asking, “can you hear me now?” for Verizon Wireless? Verizon Communications was a leading deliverer of broadband and other wireless communications products. In 2000, they wanted to jump into the mobile wireless network provider industry and found a partner with European wireless behemoth, Vodafone. 

Vodafone was the world’s leading international mobile communications group, providing wireless service to hundreds of millions of customers. They were able to tap into the North American market with a strategic joint venture with Verizon Communications. By combining Verizon’s cellular, PCS, and paging assets with Vodafone’s wireless communications technology and marketing, they have now become the nation’s “most reliable” and largest wireless network.  

Joint Venture Between Mazda and Ford

Ford Motor Company had an available parts casting center located in Flat Rock, Michigan. Mazda saw an opportunity to purchase and rebuild the plant to begin producing a line of automobiles. After Mazda had success with their MX-6 models and producing Ford’s own Probe model, Ford teamed up with Mazda to form a joint venture company, AutoAlliance International in 1992. Since then, they have produced some of the leading automobile models, including the Ford Cougar line, Ford Mustang, and the Mazda 6.

These are just a few examples of the most visible and popular joint ventures in North America and the world. Though these joint ventures are large in scale jumping into international business and marketing, even small business owners can learn from them. Combining capital, technology, and marketing savvy are just a few of the ways business owners and entrepreneurs can create joint ventures. Using creativity and experience in business, there is virtually no limit in how two or more companies can combine to form a joint 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 not just a way to make work easier for you and your JV partner.  You have joined forces to benefit your mutual customers. This ultimately translates into shared JV success. When you focus your JV efforts to satisfy customer needs, you must create a Customer Value Solution (CVS) that will first identify customer problems and needs, and secondly, develop effective and innovative solutions that meet those needs.

Defining the Market and Problem

What does your customer need? This is the question you and your JV partner must ask when you sit down to develop your CVS. First, you should identify the target market that your JV is focused on.

• Define your current market – You can define your market through the combination of both you and your JV partner’s separate markets. Are you hoping to serve your current customers? Will you and your JV partner combine contact lists to pursue a sales letter campaign? With a combination of current markets, you can offer both sets of customers a new and value-added product or service.  Be sure to tap into this existing market.

• Create a new market – Will your JV create new markets though the development of a new product or service? You may find that your combined forces will open new venues of market sectors that you have not tapped into before and even fill a needed niche market.

However you characterize the market for your JV, you will need to define and specify the problem or need of the customers within that market. Do your customers need a particular service to be performed quickly? Does your market demand your JV product for household needs? Technology needs? Lifestyle needs? Be sure you know how to address the needs of your customer before you create your CVS.

Develop a Solution

With your marked identified and the problem clearly defined, you must then develop an innovative solution that your market will want to buy. Your solution should encompass the strengths of both you and your JV partner. The market solution is the reason you joined forces in the first place, right? 

It is necessary that the product or service solution that you offer your market have these three elements:

1. Innovative Idea – The solution you present to your potential customers should be innovative. Have you developed a better mousetrap? Is your service something completely new? Whether your JV offers a product, service, or both, your solution should be interesting and innovative so that customers will be attracted to the idea.

2. Competitor Differentiation – Why should your market buy your product or service? Make sure you offer your customers a good reason to buy from you, such as faster service, better quality, lower price, etc.

3. Value Proposition – And what, ultimately, is the value to the customer? Present to them your CVS in such a way that they understand the value they receive when they make a purchase. Customers want to feel good about spending money, and knowing they received value is one of the best ways to make them feel good.

Your successful JV depends on your ability to meet the needs of a defined market. If you have formed a JV, take these steps to assure that your product or service has a Customer Value Solution.

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.

As with any relationship between spouses, friends, relatives, and even co-workers, your relationship with your JV partner requires that you continually develop and nurture it so that you both feel confident, supported, and satisfied with your endeavor. That means after you both agree on a JV partnership and put your strategy in motion, there are relationship obligations you must perform to keep your JV partnership healthy and happy.

1. Listen and Understand

Communication between you and your JV partner is a must. But that doesn’t mean that you bring your problems to the attention of your JV partner. It also means listening to their issues as well. You need to feed your JV partner psychologically by addressing their interests, wants, and needs. 

Listen carefully to what your partner has to say about the progress of your venture. Do they sound fed up? Are they excited and enthusiastic? Listening well can give you clues as to what you may need to do in order to keep your JV partnership thriving.

2. Empowerment

Empower your JV partner. That means trusting them to do what they say they can accomplish and trusting them to make good decisions. Don’t try to take the lead in every task that needs to be done for the benefit of the JV. Allow your partner room to soar and run with their talents.

3. ‘Tis Better to Give

Give as well as receive in your JV relationship. Partners who give emotionally, physically, financially, and socially are more likely to experience success. Give of your time to perform necessary tasks pertaining to the JV, such as bookkeeping, bundling and packaging products, or even making sales calls. Make sure your partner knows you are willing and able to share the load associated with your JV.

4. Inspiration and Motivation

Find out the strengths of your JV partner and encourage them. They may be a great salesperson, so encourage and inspire them to take the lead in acquiring leads and new customers. And don’t forget the rewards for a job well done. Motivate yourselves to reach a milestone by promising a celebration dinner at a fancy restaurant, for instance.

5. Appreciation

Don’t forget that people want to be recognized for the jobs they perform. A pat on the back can go a long way in showing your appreciation for the hard work your JV partner has put into the endeavor. Write a note of thanks for accepting and performing a particularly ugly task that neither of you wanted to do. Tell your partner you appreciate them for their customer service and care issues relating to the JV. Without ample appreciation, your JV partner may feel that you take them for granted, but nurturing the relationship will lead to benefits to both parties.

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.

When you think about a successful joint venture partnership, you probably know the already proven success strategies, such as shared customer contacts, bigger markets, and bundling products/services. But most entrepreneurs and small business owners miss some of the other obvious JV strategies that can lead to cost savings and more revenue.

1. Share Office Space

Sharing a space is a great way to save bundles of money on leasing expenses. Whether your business works in an office, retail store, or small industrial space, there are opportunities to mingle you and your JV partner’s business to gain synergy in your JV endeavors.

You and your JV partner could lease a single retail store if you both sell products that complement each other. For instance, you may have a bakery that specializes in cupcakes while your JV partner makes and sells artistic greeting cards and other gift items.  Sharing a single space can allow your customer to munch their cupcake treats while browsing the gift items.  If you don’t think that will work, just consider any Starbucks coffee shop and all the gift items they present their customers even before they reach the order counter.

2. Share Advertisement Space

Advertising can be a large portion of any business’s marketing budget. If you’ve ever purchased an ad in a newspaper, magazine, or even a theatre program, you know that little 2 X 2 inch space is a hefty investment. Why not design an ad with your JV partner that highlights both your services and products and even bundles items? By splitting the cost, you could even upgrade your ad to a bigger size and even add color to get more attention than two smaller, separate ad boxes.   

3. Co-Author Articles

Is there a trade publication that you and your JV partner could query? Try co-authoring an article to be published in a trade journal or other relevant magazine. Even if you don’t own businesses in the same industry you could write about a topic that highlights your JV efforts and how it affects your industry. Your article can gather much attention to your respective businesses or to your JV endeavors, and it spotlights you and your JV partner as an expert on the topic you authored. 

4. Create a New Co-Publication

Is there no trade journal for either of your businesses? Create one! You may have found a niche in your JV efforts that have a wide potential audience. Consider publishing a new trade journal, magazine, or online web journal.

5. Host Seminars

One popular way to gain customers is to host a class or seminar. Consider co-hosting a seminar where you both can discuss important topics in your field and make presentations about how you and your JV partner can benefit customers. 

A JV partnership can be more than strictly a way to bundle products and services. Use these ideas and think of other creative ways you and a JV partner can benefit from combining forces.

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.

A joint venture can be challenging, not just in the sense of business success, but of psychological success as well. Within your joint venture is a dynamic between you and your JV partner that requires careful maneuvering, much like a courting ritual. There are careful dance steps, communication gaps, and misunderstandings. And until you find your groove in how your JV arrangement will progress, you need to tread lightly in order to get a feel for how your partnership will work.

Many lucky first-time JV partners turn out to be a good match, like two peas in a pod.  They understand the issues at hand, are willing to discuss important topics, and know how to approach their JV partner to get things resolved. However, many JV partners have personality differences that end up like apples and oranges grown from different trees in different parts of the country. If yours falls into this latter category, make sure you have a communication strategy in hand so that you and your JV partner can find the best ways to succeed.

Start Easy

Your joint venture doesn’t have to be complicated. If you think a JV partnership could be a great long-term arrangement with another business, but aren’t sure about working with the owner, find a small initial project for the two of you to try. Even if it is something you could do yourself, such as designing a brochure or writing a sales letter, sharing the responsibility of an easy task can break the proverbial ice and get your JV relationship on the right track.

Arrange Regular Meetings

Since communication is the key to success between you and your JV partner, be sure to arrange regular meetings where you can discuss your plan or strategy and make decisions where necessary. This may be more frequent at the beginning of your JV partnership, such as two to three times a week depending how complicated your arrangement and strategy is. Then once your strategy is in full motion, don’t neglect to continue meeting possibly once or twice a month to stay on the same page.

Share All Possible Information

Don’t be stingy with information when you and your JV partner meet. Be sure to share all-important information about your JV partnership strategy and results, such as bookkeeping records, customer contact lists, and expense receipts. Feelings can be hurt, suspicions may arise, and the JV partnership could even dissolve if your partner discovered you held back information, or vice versa.

Be Flexible

A JV partnership requires a great deal of flexibility. You may end up taking tasks you don’t want or even discover that your JV goals will take longer to achieve due to your partner’s limited time and resources. But remaining flexible shows your JV partner that you are committed to long-term success and are willing to do what it takes to make the venture work.

Joint ventures depend upon good relationships. Take the steps necessary to be flexible and open with your JV partner so that your joint venture has the chance to become 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.

During your ongoing business dealings, you may find that your markets change, your customers grow and diversify into other demographics, and even your products or services may modify into something new. This can also be the case for your joint venture partner’s business as well. If you find this happens and your JV cannot adapt with the changes, or your JV is on the road to termination for any reason, here are some things to think about that will make your JV dissolution easier and painless.

Buy Out

If you and your JV partner formed a separate joint venture company, you may want to discuss having you or your partner buy the other out. If the business strategy still works, but you or your JV partnership is calling it quits, then it makes sense to try and continue the business venture. If you wish to buy out the enterprise, you could try it on your own, since the business flow has already been established, or you could try to recruit another JV partner to keep the new business going.

Intellectual Property

Did you and your JV partner share intellectual or proprietary information? You will want to discuss how to unbundle your respective proprietary products or services and even sign a non-disclosure agreement (NDA) to assure that important business secrets are not revealed on either side of the JV partnership. 

Confidential Information

During your JV partnership, you may have shared some confidential information about you personally and/or business. Talk with your JV partner during your closing discussions to assure that certain information concerning you, your business, or your business clients does not get exposed. And, of course, be willing to keep the secrets of your JV partner as well.

Future Income and Expenses

Even if you and your JV partner dissolve the venture today, there may still be some residual business that must be handled and agreed upon. Determine who is entitled to future residual income from the JV activities, and who is responsible for making payments to unpaid vendors. You will also need to decide who will handle the bookkeeping of the future income and expenses if the activities do go on. 

Even if you and your JV partner drew up an exceptional JV agreement and included an exit clause and strategy, there will most likely be some issues that need to be resolved. A good plan in the beginning can help your exit be more smooth and painless, but continue your dissolution with a positive attitude and business-like manner so that your closing negotiations will come to a friendly conclusion. Working to keep trust between you and your JV partner can go a long way to continuing good relations with others in your business community.

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.