4 Powerful Joint Venture Advantages
A joint venture can sometimes seem like more work than it's worth. However, business owners who think in this manner probably have the wrong mindset to be in business in the first place. A savvy business owner will be constantly looking for ways to improve business placement and revenue, as well as find advantages that set his or her business apart.
If a business owner is on the lookout for new advantages, a joint venture may be in the cards and just the thing to create those advantages. JV's are business partnerships and require cooperation and trust. However, they do not have to be permanent nor does a business owner need to share all his or her secrets to take advantage of a joint venture partnership.
What are some of the advantages? Here's a partial list: Access Larger Markets
A strategic JV partnership can provide access to larger customer bases and geographical markets. Say you have a printing business that specializes in creating shirts, coffee mugs, pens, and other merchandise with company logos. By teaming up with a business consultant with a wide-range business contact network, you can provide them with clever promotional items and gain access to a large catalogue mailing list.
Look at the marketing possibilities that a joint venture can offer your business. Since marketing and promotion are always something you need to focus on for your business, getting otherwise inaccessible market taps can help your business grow.
Longer Marketing Reach
Not only can you gain access to larger and new markets, but also you can extend your marketing reach. You may not have the budget for advertisements in national magazines, but a strategic joint venture can provide you with new marketing channels and geographic scopes. Additionally, a joint venture strategy may give you more direct access to decision makers.
Access to Technology & Resources
You may have big dreams to expand your business with technology. But rather than trying to obtain venture capital for technology expansion, consider whether a joint venture would be more profitable in the end. When you borrow money, you have the obligation to pay it back before you recognize any considerable profit. By using the technology and resources already utilized by a joint venture partner, you could build business and raise revenues faster by sharing the profits.
Your small business may not have the reputation it needs yet to become a big business. Find the right joint venture partner with national recognition and reputation, and you can instantly raise the credibility of your own business. If you have a strategic idea that can be used by a national company, that joint venture could thrust your business into the limelight and open doors for you. Don't just think about joint ventures on a small scale with the store across the street, think big!
About the Author:
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability. Join his Joint Venture Marketing Wealth Report at www.christianfea.com/joint-venture-wealth-report/?a=3