Joint ventures are a great way to expand awareness, get more leads, and boost sales, I’ve used them for years and I’m always keen to partner up with accountants and business coaches in such ventures. A good joint venture requires that you set up a temporary project with a JV partner who offers complementary skills to yours and who is willing to put into it as much work, time and money as you are.
You want to start with building a good relationship with anyone you may want to JV with in the future. Identify the types of people you’d like to work on a project with in the future and start getting to know them now. Even if you’re not sure what the project will be, but you know you’d love to work with them, get to know them now and build a real relationship with them.
Complementary Not Competition
The best JV partnerships are between people who are not really competition. They market and sell to the same audience but they offer complementary services and products to each other. This is the very best type of joint venture because you can freely cross-promote each other even outside of the JV.
Try Short-Term Projects First
When you figure out a potential JV partner and you have got to know them well enough, try starting with a truly short-term project first. For example, plan a joint online summit together or even a joint live event. That way there is a clear beginning and end to the JV so you can test it out before you go further.
Make It Legal
Even with a short-term JV project, you’ll want to get all the documents together for your legal agreement. This is going to be the best way to ensure that you both do your part and that your businesses can’t accidentally be seen as one business (which can cause a whole host of legal problems that you don’t want).
Find a way to communicate where notes are made and words are saved. Use an online chat system, or an online meeting system that records everything. That way you won’t forget what was said. Have someone responsible for making notes and creating to-do lists for all participants, and assign them in a project management system.
Do Your Research
Don’t just pick anyone to JV with. Do your research. Find out if they are honest people who deliver on what they say. Get to know them. As was mentioned above, build a relationship with them. The more you know about someone, the more you’ll be able to work with them and get something good out of the relationship.
Create Professional Proposals
When you’ve built a good enough relationship, and you’ve done your research, it’s time to create a proposal for your JV idea. Remember that you want to make it easy for them to participate. The easier you make it, the more likely it is to work out for you both.
* Create an Awesome Offer – Be sure that your offer that will be in the JV is more awesome than ever and more targeted than ever. You want to impress your JV partner, but you also want to make this product more impressive since you’ll be getting a new audience from your JV partner.
Like the cheerleaders say, “Bring it!” You need to be at your best with your JV partner. Bring more value than you ever thought you could. After all, you want to work with this person again on another project, so you want to ensure that you give the value you have to the project.
Match Contribution Ability
One thing that is important is that JV partners should be essentially on the same level for it to work well. There are some situations where it might work out if you approach someone who is much more popular and richer than you, but in that case, you’ll need to do even more work to make up for the difference. If you’re on the same level, the results will be phenomenal.
Successful JV partnerships rely on people doing what they say they will and delivering (over delivering when possible) on what they say they will. The keys to joint venture success will guide you along the way.