Using Joint Ventures To Grow Your Business

When you have an online business, it is not enough to just work towards getting to your goal - you need the help of others in your niche. Sure, you have the reputation, the knowledge, the capital, and the right attitude, but you need to partner with other businesses as well to get more leads, more buyers, or if you sell online - more visitors into your site. A relationship of this nature is called a "joint venture."

A joint venture is when two or more parties, companies, individuals or organizations who have related lines work together to benefit each other. This may mean promoting each one's blogs and events, or it could be the cross-promotion and selling of each party's products. An example of the former would be the inclusion of clickable keywords or hyperlinks on the posts of a blogger, that allows redirection into the website of his partner. An example of the latter would be a hamburger joint that pushes the sale of a ketchup brand with every purchase of a burger. Whatever type of relationship it is, a joint venture mutually benefits both parties involved.

Joint ventures are powerful tools that may be used to expand business. Especially if you cannot do it on your own due to limitations set by budget, manpower or expertise, joint ventures are essential in growing your business. But there are various factors to consider before you ever embark on a joint venture. Here are a few pointers:

Get to know your potential partner. It would be reckless to enter into a deal with anybody you do not know. Don't send blind emails or publish classifieds to search for a partner. If possible, ask for recommendations from people you trust. Research about your future partner. Find out if he is a pillar in the industry, or if he's just out to leech from your good reputation.

Remember, if you choose a wrong partner, your business may go down too. If you did not research well and find out that your partner is a scrupulous and sly businessperson whom nobody trusts, then he brings down your reputation with him.

Don't be too quick to sign contracts, if ever you do find a good partner. Get to know him better. Attend seminars or join organizations where he is part of. It would be prudent to find out how he acts when faced with adversity. You see the true essence of a person when he is down - much better than when he is most successful.

Make sure the joint venture is beneficial to both parties. Is the venture going to help your own business, or will it only help the other party? Don't be the gullible partner - make sure that you will benefit from the partnership. Find out how your partner intends to use your business to his benefit. Don't be too timid to ask!

Especially if you have a great reputation in the industry, remember that there will always be those who would want to name-drop, and drag you into their own personal dealings. A "parasitic" businessman that sells iPhones may possibly tell people that he was good friends with Steve Jobs, even if they have never met. He can go on doing this, unless somebody tries to find out the truth. Don't be caught in a similar dilemma.

Set realistic financial expectations. If you are offering to help someone, make sure your promises are kept, true and realistic. Making your partner believe that he is going to get 5,000 new sales a month by embedding his hyperlinks on your blog is something he will expect. Don't promise something you can't give, because someone else's dreams are hinged in your hands. If you fall short, you will end up losing more because people will surely talk - and that will be the end of you and your business.

At the onset of the joint venture, set goals. It would be good to keep this in black and white in order to avoid disappointments and disagreements. The ultimate purpose for a joint venture is to mutually help each other. The goals, and whether you meet them or not, provide good measurable ways to see if there is true benefit from the partnership.

The rationale behind a joint venture is beautiful - helping each other. Make it a pleasant experience for both you and your partner by taking these guidelines into perspective. After all, success is always better when shared.


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Michael Griffiths is the CEO and Founder of My Small Business Marketing Guru. Helping small business owners generate more leads, clients and increase profits with relationship based marketing strategies. We invite you to get your free black mask marketing resources to help you business grow today, when you visit http://www.mysmallbusinessmarketingguru.com.au