Joint Venture With a Handshake - Grow Your Business Fast!
Wikipedia describes a joint venture as:
joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.
A well executed Joint Venture deal is one of the most powerful ways to grow your business ever created!...
Suppose for moment, you've developed a high-end training program teaching others how to become a local business consultant. You're looking to expand your business. What if you could send a letter to the non-buying leads of a much larger company that sells training programs to become a real estate consultant.
An example cited in Forbes, by Patrick Hull outlines the benefits such an arrangement can deliver...to both parties.
"Take the example of a friend of mine ... He was looking to expand his business a few years ago and entered into a JV with a much larger company that sells training programs teaching people how to become a business finance consultant. The company generated thousands of leads a month and had a 7% sales success rate. My friend worked out a deal to have the larger company mail a letter he wrote to all the non-buyers (93% of the leads) at his cost and shared a percentage of the sales. These leads were all people interested in learning a skill – just not the exact one the company offered. He was able to gain access to the leads the other company generated at no cost. Both companies benefited because leads were not wasted and the larger company made additional profits with no additional expense while my friend made a killing with this JV.[#1] "
You can read the full article here: http://www.forbes.com/sites/patrickhull/2013/06/21/joint-ventures-provide-opportunities-for-entrepreneurs
So have you generated a list of leads?
Do you have a sizable customer list?
You can certainly use this asset to grow your business, very quickly.
Why not get a little creative here? . . .You already have a sizable list of loyal customers, right?
Consider offering them a service or perhaps a catalog of services you've negotiated special pricing on, just for your "preferred customers"...you'll be offering them an opportunity to take advantage of special pricing, they'll feel they are really special, and you'll generate more sales for both yourself and your JV partner.
Here's why this works...
Your customers know you and trust you.
When you send a letter endorsing a service or a product, they trust your endorsement...they are three times more likely to purchase from your recommendation than if the owner of that particular product or service offered it to them directly.
Here's a few more reasons to consider why joint ventures are so successful.
You're sharing resources...mailing lists, products and services, therefore there is absolutely NO ADVERTISING COST.
You can turn it around and have your JV partner send your endorsement to their list...their loyal customers respond just as yours did to his offer.
You are developing new customers, clients to whom you can now offer additional products and services.
You can easily set up a Joint Venture and create large profitable windfalls for both parties in a relatively short time.
When done correctly, Joint Ventures are profitable for both partners.
Here's just a short list of possible JV Partnerships:
- Car Wash/Auto Detailer/Car Parts Store
- Moving Company/Storage Units
- Tackle Shop/Fishing Guide
- Wedding Planner/Photographer/Prenuptial Attorney
- Equine Vet/Saddle Blanket Maker/Farrier Service
- Tree Saw Manufacturer/Skid Steer Manufacturer
- Home builders/Landscapers/furniture stores/Pool builders
- Chiropractor/Massage Therapist
Getting the picture?
What other services and products do your customers buy either before or after they buy your services?
What products or services would enhance their enjoyment of your product or service?
Who sells a product you have the perfect companion to?
Who are your competitors? Don't rule them out...you may be able to offer your product services to their non-buyers and vice versa. You may even be able to package both services for a remarkable value.
Who sells to customers who fit your customer profile?...They may offer completely unrelated products or services, but their customers are perfect for you...What are their hobbies?...Their net worth?...Where do they live?
Once you identify potential JV partners, you can contact them with your idea.
My clients know the success of your joint venture is limited only by your creativity .
So let's take a look at the five ways to Joint Venture:
1. You joint venture with another business and supply the products or services.
2. You joint venture with another business that supplies products or services to your customers.
3. Your company can license or set up reseller deals with other companies so you both profit
4. You acquire the rights to someone else's product, as a certified reseller or licensee
5. You connect one company with another that desperately needs the product or services of the other--as the middleman.
When you're ready to contact your potential JV partner, if you know them personally, the best approach is in person if possible. Otherwise, simply pick up the phone and call them.
If you don't know them personally, you'll want to contact them first by phone, postal letter, or an express mail package. I discourage the use of email for the first contact...it's simply too impersonal and unreliable.
If contacting by phone, you want to keep your introduction brief and explain the benefit of your idea to their customer and to them.
If by letter, of course, your first concern is getting your letter opened. Let your prospect know how your product will benefit both them and their customer. Suggest they act quickly since you'll be contacting other companies in the future.
When creating your offer, you'll want to develop a deal your Joint Venture partner will find impossible to pass on.
The best way to do that?...You want to put together an offer so unique your market can't resist it. You want to build in value and offer it at a great price.
Be sure to build in the value for your JV Partner. You'll want to make a list of everything that's in it for them. What are their benefits? What will the profit split be?
Explain your role. How you will do everything, including taking on the risk. They have no investment to make.
One very effective approach: "What we like to do, is work with other companies on a joint venture basis to do X;Y and Z. Do you have a moment to talk to me about it?"
Remember: Sell the Results, Not the Process.
Give your prospective partner a timeline.
If they have an interest, I recommend you send a non-disclosure agreement prior to sending your proposal. By doing so, you position your proposal as having greater value, as well as protecting your ideas.
Keep the deal simple. Focus on the benefits to your JV partner and their customer. Follow through and have fun!