Increase your cash flow, and create multiple streams of income.
Joint Venture/Strategic Alliance
What Is A Joint Venture/Strategic Alliance?
A Joint Venture or Strategic Alliance is relationship between two or more businesses ethically leveraging off their existing resources, be they the companies relationships with their customers, their distributors, their media, their markets, their customer database etc.all the while remaining independent
Whether you're a new business or have been an entrepreneur for some time, you might want to consider the idea of forming a joint venture.
Consequently With joint ventures/strategic alliances you have what is called the trust factor. The businesses you have an alliance with have already gained the trust of their markets, which make their customers more receptive to you, because your coming through somebody they already know and trust.
When you have an alliance with many different companies which have been in business for ten, twenty, or more years you now have the power they represent. They have the credibility, reputation, years of business and marketing experience that you can leverage. How many years might it take you to gain what these businesses already have?
What non-competitive companies, organizations, already have relationships with the people that are in your target market? You have to think of what would their customers buy before, during, and after from these companies that you want to JV with.
Don't you think it would be more convenient for these companies and their customers to be sent to you because you provide a non competitive complementary product or service that they do not? You both just provided a value added service which enhances your reputations in the eyes of your customers for your helpful and convenient service. And you did not have to leave the customer on their own to go to your competitors.
When the company which already has their customers trust sends them your way, and you in turn provide an exceptional product and/or service to them, they will in turn trust you, which will lead them to becoming one of your loyal long term customers.
The time will also come when your own customer needs a product or service that you do not provide, you will just send them to one or more of your JV partners who do, providing your customer with value added products and services and convenience. Otherwise they would have again, gone to one of your competitors.
Joint ventures not only provide you a new way to acquire new customers and profits, but they also provide a way to building trust, reputation, and credibility in the eyes of your customers.
You also build trust between yourself and the business partners you teamed up with which leads to long and prosperous business relationships. You help each other out, you help each others customers. You'll leave your competition scratching their heads and wondering what you're doing.
Not to mention the fact that your competitors, most small to medium sized businesses don't know what joint ventures are, or if they do they don't know how to implement them, due to lack of information or training, or thinking that only big business and major corporations can do joint ventures.
Joint ventures, strategic alliances are perfect for small to medium sized business, both online and off.
Capitalize and profit on your competitions ignorance!! Their ignorance is their fault not yours. Capitalize and profit on it. Business is business.
Let your competition spend thousands of dollars on expensive ineffective advertising and marketing, while your simply teaming up with non competitive complementary businesses and reaping the rewards that come with trading and sharing your customers, your media, your distribution, your advertising and marketing, your customer lists, reputations, credibility, and trust.
Think differently than your competitors, differentiate yourself or you'll end up just like them, another commoditized business, no different or any better than your competition.
Stop being a me to business. When your only difference is competing on price or the same old outdated advertising- we've been in business for such and such time, were locally owned, family owned, etc. etc. are you really providing potential customers any good reasons to do business with you?
Your customers don't care about you per se, they care more about what you can do for them. Using joint ventures, forming a strategic alliance with hundreds of non competitive businesses in your area and beyond,online and offline, you can offer your customers a wider range of products, services and convenience, making your business more valuable than your competition can possibly equal.
joint ventures can and should be used in your business to gain more customers, improve profitability, expand your reach into more lucrative markets and overall take your business beyond where it now presently stands. It's been said that less than one percent of small to medium sized business owners use or know how to use joint ventures in their business. This is unfortunate. Joint ventures can far out surpass most forms of advertising and marketing. Joint ventures are an easy and effective way to get your business and its products and services out there in front of the eyes of the buying public,with very little risk or investment.
With the economy getting worse ( no matter how the economic statistics are manipulated to try to prove otherwise) now is not the time to squander and misuse the resources in your business. From spending more money on increasingly expensive ineffective advertising models, purchasing the latest gurus secret traffic getting course(you know who you are) to thinking that “if only I had more money to spend on my business I could do a lot more to make it successful”.
Instead of spending more money on advertising, writing more articles, making more videos and on and on trying to do everything yourself, seek out JV partners. You're always going to have to much to do so come to the conclusion you can’t and should not try to do it all by yourself.
Marketers are used to being lone wolfs when it comes to generating income for themselves. But to ratchet up your productivity or your profitability, or both, to a higher level, joint venture on projects with other like-minded marketers.
Teamwork takes on a whole new meaning when using joint ventures. When you implement joint ventures with non competitive complementary businesses, a powerful strategic alliance is formed. An alliance that will broaden your customer base, set up additional sources of revenue,allow access to more markets with little or no investment and no risk, all the while increasing your profits.
Joint ventures give your business a wider scope of profitable possibilities. Possibilities that no other form of advertising or marketing can deliver.
Here's a list of joint venture examples and benefits to give you an idea on how you can implement them in your own business situation, and how it's a win win win situation for everyone involved.
1. A business that your teamed up with may have a more effective, far reaching marketing program than you have, which you can piggyback on by having them distribute your marketing materials with theirs such as including your adverts in their invoices and mailings. You can offer them a percentage of the profits(recommended) from the sales you received from these mailings.
2. You need the services of a copywriter but cannot afford it. You could pay them on a performance basis, a percentage of the profits that his copy brings in. It could be quite an incentive to the copywriter because they usually charge a one time fee to write the copy. Instead of collecting the one time fee he’d keep getting a percentage of the profits as long as his copy keeps bringing in the money. It’s also very lucrative for you because his copy keeps bringing you profits, while you did not have to pay for his services out of pocket. Profits you never had before, customers you never had before, a partnership with a copywriter you never had or could afford before, all without any outlay of cash.
3. Your a woman who owns her own restaurant and business has slowed and your in need of new customers. You could offer an exclusive lunch/dinner special celebrating women in business. You would then contact women business groups and invite their members and they can hold a women in business event at your restaurant.
You then contact your local chamber of commerce and get information on all the women owned companies in your area, and send them flyer’s, gift certificate, vouchers, notifying and inviting them to this event, and have them invite other business owners they know, and any women they know of who are interested in starting their own companies, because the business group that will be there will be handing out information on how to start and run your own successful business.
Not only would you be providing a lunch/dinner special to these women business owners, but also providing a helpful service and opportunity to the women they invited that are interested in starting a business of their own. You’ll also be doing the business group itself a service because they could get potential new members from this event. For your restaurant business this event and the people you initially invited who then invited their friends, co workers, family, business associates etc, can make this extremely profitable for you and everyone involved.
4.You have an interior design business, you can form strategic alliances with a flooring company, a window company, a carpet cleaner, a siding company, a roofing company etc. After you have finished a job for one of your clients you notice that their windows are old and worn, the newly decorated room looks great but clashes with the old worn out windows.
The window company that you have an alliance with, they can have you hand out their gift certificates and vouchers for a free consultation/evaluation of your clients needs, they would naturally pay an ongoing commission on that and all new business resulting from your joint venture with them. It all comes down to what would your clients buy before, during, and after they buy from you.
Same thing with a joint venture with a flooring company, your clients carpet/flooring is in need of repair, since you already have a joint venture with the flooring company, they can be sent in to do an evaluation and if your client agrees on buying their services you provide a value added service for your clients, but also convenience, and your commission. All business your joint venture partners send you, you also pay them commissions resulting from these JV’s. Clients you never had before, profits you never had before without all the expensive advertising.
5.You have an on-line business, lets say you have a fitness program, you then contact on-line companies that have a large customer base related to the health field, of course you want non competitive businesses that complement your product/service.
Contact companies that sell vitamins, supplements, natural foods, health related information(news letters) and exercise equipment. You can also contact companies that cater to a health niche, exercise and health information related to women, men, the elderly, children, busy people who don’t have a lot of time for exercise,etc. Then ask them to advertise your product/service to their members by way of their email list, direct mail campaigns, and any other way they have contact with their customers. Then offer them a percentage of the profits that come from the sales.
6.One more quick example, of an on-line JV. This time it will be the opposite. A business contacts you, and asks to advertise their product/service to your customer base. After researching the company to make sure they and their product/service is a right fit and is not in direct competition with what your offering, you then agree on what percentage of the profits they’ll pay you on all resulting sales.
If you have a large customer list you can offer companies the opportunity to advertise to your list for a percentage of all ongoing profits. It can be very lucrative and helpful for them because your offering them the opportunity of reaching hundreds to thousands of customers that they never had access to, and its also lucrative for you because your getting a percentage of all ongoing profits. At the same time offering your customers more products and services. Products and services that are non competitive and complementary, providing your customers with choices and convenience, instead of leaving them to go somewhere else.
Benefits Of Joint Ventures.
Increases your cash flow, and creates multiple streams of income.
Unlimited products and services to sell that you never had access to.
Removes risk and costs and reduces overhead.
Reach new customers you never would have reached.
Choose to work with anyone/anywhere you want.
Reduce advertising costs to virtually zero.
Use other companies resources that you do not now have are could afford.
Prosper in economic hard times.
Surpass your competition.
Saves you time.
Increases your credibility and trust in the eyes of your customers and JV partners.
New accomplishments and achievements in your business.
The opportunity to expand your business, products, and services to a wider customer base.
Work from home.
Test new products/services with no risk using your partners already existing resources.
Rid yourself of excess inventory.
Improves customer acquisition and retention.
Learn new things from venturing with your partners.
Develop new business and personal relationships.
More profitability by offering your JV partners back end products and services to your customers.
More distribution channels.
Reduces acquisition costs.
Borrow credibility and reputation.
Partnering with people that have skills and knowledge you don't have.
Share and borrow advertising.
Reclaim lost and inactive customers.
Bundling your and your JV partners products and services.
Take advantage of your partners underutilized assets and resources, and put them to work and vice versa.
Trade and profit off each others unconverted leads.