How To Start A Joint Venture
Starting a joint venture to make your business more successful isn’t hard. Finding the most suitable partner when you are starting a joint venture can be the most difficult part. Using another company’s resources, mailing lists and capital can offer advantages to you, but you must sell a joint venture partner on the advantages they will gain, as well.
Finding a company that has a complimentary product or service can propel both companies to success. You don’t always have to have a product because you can own exclusive rights to sell one. You don’t always need to have an email or mailing list because you can buy those. You don’t always need to have start-up capital because there are investors willing to put up the money for good ideas and products.
When you are starting a joint venture, you need to give some thought to the most complimentary partner. It should be a joint venture partner that brings something to the table that you need and you should be able to offer them something in return. Starting a joint venture is the easiest when you are able to sell yourself and what you have to offer to a potential joint venture partner. From there, you need a blueprint of how you plan to structure the joint venture and split the profits or share the expenses.
Once you have an idea of potential joint venture partners, you need to approach them with a business plan that spells out how you envision the transaction. Starting a joint venture means that both partners will have input that involves the advantages for making more profit to each of them. Your negotiating and communicating skills should be good in order to make a convincing sales pitch for what you are bringing to the joint venture. Just keep in mind that starting a joint venture is considered one of the leading business marketing tools for the future.
Combining resources with larger and more successful companies can be especially helpful when starting a joint venture. If you can show them how they can share their email lists and advertising resources or technology to make you both more money, it won’t be that hard to convince most people. Your salesmanship, knowledge, action and desire go a long way in starting a joint venture with another successful business, but it is much easier than going it on your own.
Keep in mind that starting a joint venture is based on the principle of small hinges can move large doors. The more leverage you have, the more profits both businesses will make in a joint venture. Even if your partner is another start-up company, you can combine resources to make more money and lower expenses. Other than finding the right partner, it is just a matter of agreeing on the joint venture structure and putting it on paper.
Be sure you have chosen the correct joint venture partner because a bad choice can hurt your company. Once you have sold the idea, negotiated the terms and documented the agreement that is all there is to starting a joint venture partnership besides making the massive profits.
Scott Letourneau, CEO of Nevada Corporate Planners, Inc. Since 1997, NCP has helped more than 5,500 clients get their businesses off to a fast start!
Go to http://www.TheUltimateJointVentureBootCamp.com to find out how you can master this ultimate form of leverage in Las Vegas January 28-30, 2011!
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