1-2-3 Steps To A Successful Joint Venture

A successful joint venture marketing effort is the goal of many small businesses, and is a great way to increase market visibility and profits.

Joint venture marketing is rising in popularity everyday, but it does take some skill, good planning and foresight to execute. Here are the steps a business owner should take to be successful in this arena?

1. Write down your goals and desired outcome

Be sure to have specific, measurable and action-oriented goals for your joint venture, along with a realistic time frame for their execution. These should be written down and easily accessible so that you can refer to them when implementing your action plan.

2. Analyze the target market you want to reach

Begin by reviewing your current clientele, then choosing the clientele you want to attract. Analyze your target market for buying habits, marketing trends, etc. Brainstorm other products and services used by your target market and determine whether there's synergy with what you offer.

3. Identify potential partners who already serve this clientele

Think of potential partners that have influence and credibility with your target market. Remember that your network of business associates, suppliers, family and friends may be a good fit or can introduce you to prospective partners. Create a list of potential partners that offer the best expansion opportunities, and have the most desirable client base.

4. Determine your joint venture format

Do you want to offer a profit sharing format, or a reciprocal arrangement, or both? If you choose to pay your partner a percentage of the profits, then you will pay them a specific amount or percentage for each new client they send your way. If you choose a reciprocal arrangement, then you will systematically send clients to each other. Think of something that is of high perceived value to offer the clients.

5. Determine your budget

It goes without saying that you should control costs from the beginning of a project. That means you need to sit down at the start and list every item that's required to carry out the joint venture.

6. Create an action plan and implement it

Once you've listed your potential partners, create an action plan. This should detail the steps you'll take to approach them and implement your joint venture project e.g. "I'll contact Joe Bloggs of XYZ Corporation on July 15th." To keep you focused, refer to your goals when creating and implementing your action plan. Also note that the details of your action plan will change depending on the pace at which the project goes.

7. Contact your partners and open the door for discussions

Make initial contact with your potential partners and set up a meeting. You can contact them by phone, snail mail or email, but phone remains the best contact method. At the meeting, keep your eyes and ears open to make sure the market fit is as good as you initially thought. Also, ensure that the "chemistry" is good between you and your prospective partners. Emphasize the benefits of your proposal.

8. Decide on either a contract or a hand shake deal

If you choose a contract, ensure that it specifies terms for review, and doesn't lock you into any long term arrangement without specific criteria for profitability being met. If you choose a hand shake deal, be sure you trust your partner!

9. Launch your joint venture and test the results

Start small by doing a test run first. Write, print and send the endorsement letter and implement the tracking system. Make sure you're equipped to handle the flood of new clients once you've set the joint venture into motion.

These steps are simple and easy to execute. If you follow them appropriately, you can look forward to having profitable, win-win joint venture projects! As with any marketing strategy, remember to test, tweak, track and review results until you find the best fit.

Copyright © 2005 by Habiba Abubakar and Emprez. All rights reserved.

Note: You are welcome to republish this article as long as the resource box at the end is included fully and unaltered.

Habiba Abubakar, a.k.a. The Profit Diva, specializes in helping small business owners who are struggling to increase their client base and are tired of earning mediocre profits. The tips in this article have been excerpted from her home-study program, "Joint Venture Profits For Small Business Owners."

To learn more about this step-by-step program, and to sign up FREE for her revealing Mini eCourse, "The Easiest Way To Skyrocket Your Profits In 90 Days Or Less," visit http://www.profitdiva.com

In The News:

INL Helps Small Businesses  Idaho Falls Magazine

Alliances: What works, what does not

Why Alliances FailWhen do you know an alliance is falling... Read More

The Power of Why: Your Psychological Ally To Marketing Success!

Here's why 'WHY' is such a profit-making marketing trigger."Stop taking... Read More

Modern Clear Coats, Auto Detailers and visit to Lexus of North America

We visited Lexus USA, home of the Lexus North America... Read More

Postcard Marketing Your Small Business

One of the best marketing strategies a business or organization... Read More

The End -- Fireworks or Fizzle?

Seems as though there are a lot of business closings... Read More

Justice In Action

During the 1980 presidential campaign, candidate Ronald Reagan vowed, if... Read More

Starting is the Hardest Part

You can't imagine how many people ask me how I... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Fleet Washing Expansion Considerations

Many times small businesses want to expand their businesses and... Read More

Asphalt Paving: Striping Your Parking Lot

As you may already know, asphalt paved parking lots do... Read More

Competition Relations in Auto Detailing

There is significant competition in auto detailing and car washing.... Read More

Job Costing - Do You Know How?

What's your job profitability? I meet with business owners every... Read More

Small Business Stress Buster: Completion not Perfection

Completion not Perfection Five Keys To Doubling Your Productivity and... Read More

Entrepreneurs and Franchisors Watch Out

New Franchisors and Entrepreneurs need to watch out as they... Read More

Franchise Rule to be Revised; Why?

The FTC, Federal Trade Commission, is considering modifying the franchise... Read More

Credit Repair Business Opportunities - Huge Profit Potential!

In the world today, many people are further in debt... Read More

Cash Flow: Why Chaos Equals Poor Cash Flow

Recently one of my customers told me the chaos swirling... Read More

Multiple Clients Create Your Independent Business

Would you rather have one good client paying you five... Read More

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you... Read More

Three Big Barriers To Small Business Marketing Success

When you feel like you're always busy working on your... Read More

1-2-3 Steps To A Successful Joint Venture

A successful joint venture marketing effort is the goal of... Read More

Small Business Success Tip: Learn Something New Everyday

Your grandfather probably told you to "learn something new everyday".... Read More

Small Business Newsletter Dilemma: Which Day Do I Send?

If you're just ramping up your small business email newsletter,... Read More

Is It Recess Yet?! Confessions of a Self Employed Workaholic

I have a confession to make. My name is Caroline... Read More

The Key To Success - Choose The Right Partners

Do you promote yourself as offering prompt, reliable and quality... Read More