Building a partnership with another business can be a great marketing shot into the revenues of your business. By linking your strengths, you will become a bigger force in your industry. However, making it a profitable situation does require thoughtful attention.
Creating the joint venture foundation
First, you will have to know your firm. That means that you have a definite knowledge of your vision, and you also know how the public accepts you. Once you have settled these elements, it will be the rock on which you are established. When searching for the right partner, your idea cannot be negotiated – and if that means moving onto the next candidate, then that is the only option in a win-win joint venture.
Dissecting considered partners
Next, do your homework to find a business that is genuinely inspired in a joint venture. If you are a small entrepreneurship firm, you can look for other small businesses to team up with – enabling you to become a competitor of a larger company. Both of you will win in this situation. However, small and large companies should both be open to a joint venture together, as this too could be a benefit to both.
Consider the detachment
Once you have found the company which hails yours, plan your divorce. That’s right, plan your divorce. This is a marketing tactic used by many, wherein forming a united front, you carefully consider everything and anything that could go wrong. You cover all of your bases upfront. This ensures confidence in each entity and gives you both a clear future because you have eliminated the fear of the worst-case scenario.
Open the lines of communication
Now that you have completed your marriage/joint venture remember that relationship will want quality communication. Set up weekly conferences to monitor progress as a whole, as well as check in on how each entity is feeling about the partnership.
Chances are, as with any relationship, there will be issues. Staying on top of any obstacles is vital. These issues can grow into such a large dilemma that they eventually destroy the joint venture foolishly. Communicate regularly. The plan should include the issues in your planned divorce to make sure you are still in agreement.
Create the business plan
Now form your business plan. Once you have known each other’s nerves and flaws and have shared thoughts and agreements, make a plan together. Agree upon suppliers, your structure, and allocations. Be sure to do this together.
If in performing any of the steps you run into a multitude of conflicts, then it may be time to move on and find another partner. Negotiate on the things that are less critical to fulfilling your vision. If you stay grounded in the fundamentals, the company you joint venture with will form a profitable situation.