Choosing your JV Partner is not a relationship that can be rushed into. There are many factors that are involved when finding the right business and individual to team up with. I recommend the searching starts with you. A great way to prepare for this new venture would be to self-evaluate.
- Clearly evaluate the current status of your business and compile a list of pros and cons.
- Honestly evaluate your ability to communicate in both professional as well as personal situations.
- Make a list of goals that a JV Partnership could help you accomplish.
- Organize your thoughts on business tactics that attract you and repel you.
Now that you have taken the time and evaluated yourself and your business it is time to focus on the matter of potential JV Partners. It is a wise decision to choose a business similar to your business, in both size and compatibility. Another option to keep in mind is their location, along with their products and/or services offered. You would not want to choose a partner whose business is a competitor of your own or one that is too far away to make real connections. It’s all about doing your research. When you have a few options to choose from you will want to contact them and arrange a meeting. Be very up front with the arrangement, broadly mentioning what a possible partnership could offer for both parties. Be sure to be confident about the partnership potential.
During the meeting you want to connect with this individual on a professional and personal level. If your goal of a JV Partnership is specifically marketing then you will need to express your compiled ideas. I recommend meeting more than once before teaming up. It is perfectly natural to ask a willing participant to do their own evaluation to bring and discuss to a future meeting.
A successful JV Partnership relies on compatibility and communications. Together, you will need to discuss goals and rules. A perfect partnership is a 50/50 partnership. This means, if you chose to start by sharing email contact list, then both parties know the limits and expectation when doing so. A newly formed partnership should consider starting small, in order to test the water. After the completion of the first phase, and evaluating the results for both parties, you could meet again to discuss further activities and further negotiations if desired.
When negotiating new strategies, be sure both parties are incorporating feasibility. Another quality that is absolutely required in an equal partnership is commitment. The long term goals of JV Partnerships usually revolve around the ability to cross promote and market both businesses. All new customers are welcomed, but in business, creating long term customers are the key to future growth. Lastly, keep an open mind when it comes to ideas of what you and your JV Partner can bring to the table. Remember this…two heads are always better than just one.