According to Merriam-Webster.com “A joint venture is a partnership between two or more companies that work jointly for a specific period of time.”
For small businesses, this can mean working with other businesses in a number of ways. The most common in the modern business world is working online together, sharing ideas, resources and marketing opportunities.
Whichever way you choose to work with someone, you must first develop a strong relationship. You must also determine your goal for the partnership as well as the responsibilities of each partner.
First, you need to develop a strong relationship with your future partner. You want to know all about their business and their business goals. What do they value? Do these values match yours? A good way to determine this is to participate in their blog, forum, and on social media.
Once you determine that you are a good match, you need to develop your relationship further. Start out small and work your way up to more in-depth projects. The most common way to do this is to exchange email list ads or promotions. You mail theirs to your list, and vice versa. You get to keep anyone who subscribes to your list, and vice versa. You would also split the profits earned 50/50. Once you know how this works out for both parties you can determine if another joint project is in your future.
Lots of small business owners get really excited about JVPs, and bitterly disappointed when they don’t work out. In most cases, this will e due to a lack of preparation, organization, and realistic expectations. Hope for the best, but be prepared for the worst, such as things going wrong or the person ending up being the partner from hell.
Finally, the more money and time that is at stake, the more you need a clear contract that states who will be doing what in order to make the venture a success, and how the proceeds will be split, what follow up will be done, and so on. Even people you’ve known for years can become greedy and foolish at the prospect of a lucrative deal. A clear contract can protect your rights and revenues, and vice versa. Don’t undertake a joint venture unless you are 100% committed to doing the work you will need to ensure it succeeds.
JVs can be one of the fastest ways to connect with other segment of your niche that you have not yet tapped into, but learn all you can before undertaking a serious commitment of this nature.
Further Reading
17 Steps to Joint Venture Partnership Success
How to Grow Your Business with Joint Venture Partnerships
