Leveraging basically means that you wisely use your power, no matter where the location may be. This describes joint ventures perfectly. It is a good thing that no one is a loser with a joint venture. Each member that has invested has to be satisfied or the whole thing will crumble. There isn’t incentive for a company to enter into a joint venture if they aren’t expecting something in return. But, chances are this will not happen because the other company knows what to expect if things turn sour. In a joint venture, all of the important items are discussed first and some companies can take a very long time to set them up. But do not think that your small business cannot use this to its advantage.
When it comes to business communication, it should be sweet, short and to the point. This same logic applies during the times that you are inquiring about joint venture partnerships. Also, steer clear of flooding the other business with advertising spam. When contacting the other business, state your reason for calling them, or this can be done in writing. There is no need to include a long letter with company history. But, you have to present yourself well. You can get to that later if they are interested. And always tell them how they will gain from the JV.
Whenever you go into a Joint Venture, try to think in terms of strategy and long term benefits. Joint ventures can go on for years and years if the promotional work continues to be successful. Of course, you need to make sure that the business relationship is a positive one and that you can position yourself with in it as well as possible.
Simply put, you can continue to develop more joint venture alliances for an indefinite period. How often you do them will simply depend on what is out there to be promoted. You might be able to take a break from one company and then a couple of years later it will happen all over again.
If you are doing a joint venture with a bigger company you are going to need to be open minded when it comes to the terms. There are many possible scenarios with JVs, and you may want to make a small sacrifice for a greater cause later.
Another common aspect of larger JVs is the formation of a company solely for the JV. You are going to partly own these companies which will be something that you need to negotiate. How much you own is just a segment of what you should be thinking about; other factors might seem more attractive to you. Negotiation is required for everything which means that you are going to have to make an important decision about each of the terms that you will deal with. Most people have seen successful JVs. They actually happen all the time. Linked through advertising and offers, the two companies worked together in tandem. What is happening is that both businesses promote each other in a positive way. In most cases, even an individual IMer can do JVs successfully and profit.
