To make money with your business, there are reasons that you should do profitable joint ventures and appoint someone to find them. The person that you hire should know about JVs and marketing to some degree. You need to be able to find good prospects. It’s actually easy to locate and contact businesses for this purpose. A single JV that you do can be a huge victory for you, even if it takes you a year or more. By having just a little experience, you will become a JV machine that is profitable with every choice that you make.
You can’t approach joint ventures with the same mindset as you would doing, say, a solo advertising campaign. If you want your JVs to get off the ground, you need an extraordinary amount of perseverance. To be realistic, many of your attempts at reaching out to other businesses will fail. You’ll find that if you send out emails, many people will never respond. However, the mindset you need is the one that recognizes that when you finally do put together a JV, you can profit immensely. You have to look at the bigger picture, which includes the total number of possible JV partners in your niche or industry. This is the nature of this method and you have find a way to deal with the rejection.
You have to be able to provide your potential partners with a strong incentive to want to conduct a joint venture with you. If you’re approaching someone well known or a large company, though, you have to work extra hard. Keep in mind that your joint venture will be far from the first they’ve been approached with. When a company is large, well known or highly regarded, it gets offers every single day. What this means is that you must have something truly valuable for them if you want them to take your offer seriously. If you’re planning to approach a big company, then, make sure you’ve gone over your offer and presentation many times. If you need some practice, start off with smaller JVs until you can put together larger deals.
Anytime you are starting out new with any time of business or service, you have to make concessions sometimes. This is very common, but don’t let others take advantage of you. Since you are new at joint venture negotiations, the other company might try to get the best of you. You have to hone your skills when it comes to making quick decisions and walking away from situations that do not suit you. Always be a pro and do not let the situation go downhill. After doing a couple of joint ventures, you will have the confidence to do more. You negotiation skills will get better over time.
They look like they happened overnight but that never happens. Joint ventures more often take quite a long time to plan–you’ll have to go to meetings, negotiate terms and more. Launching goes more quickly when you’re working with smaller businesses but you won’t usually get as much of a payout with them.