In part 1 we discussed why a Joint Venture (JV) may be right for your small business and how to choose a JV partner to suit your business needs.  In this article, we will discuss securing a good JV arrangement and how to ensure its success.

Securing Your JV Arrangement

Once you have decided upon your potential JV partner, it's important to get to know more about their business.  It's a bit like dating - you grow the relationship, and not ask them to marry you (ask for the JV) on the first meeting.

In order to put together an offer that is of value to them, the main question on your mind when you do meet, should be ‘How can I help the potential JV partner?'.  You will need to gather some information...

• Find out what the biggest challenges are in their business.
• Ask them ‘If you did have another challenge, what might it be?' Drill down to get all the issues out on the table so you can understand their situation.
• What is the impact of the challenges on their business?
• What would benefit their customers - is there a particular need not being met?

Now that you know their challenges, you can formulate your offer.  The exact details of the what, when, where and how of your offer can be agreed upon once you secure the JV, but for now it's important that you have some initial ideas in place.

• What benefits do the potential JV partner and their customers receive by doing business with you? Think about the answers from your information gathering. It must be compelling in order for them to say ‘yes'.
• What is your offer and how will you deliver it? Is it going to be a special deal on an existing product/service you have, or a newly created product/service especially for the JV? Your offer needs to be a deal that the potential JV partner's customers can't get anywhere else, and vice-versa.
• How will you market and promote the JV? Will it be in-store, off-site, online, an event or seminar etc.?
• How will you handle and distribute any monies received from the JV?
• Will the agreement be formal or informal?

When you are ready to present your offer, remember to mix logic with emotion - just like any sales situation.   

Communicate to them the benefits that they will receive from the JV, such as: -

• The solutions the JV can provide to their business challenges.
• The solutions the JV can provide to any of their customers' needs that aren't being met.
• The positive impact the JV can have on their business growth.

Tip: Always submit the final proposal in person if possible so you can answer any questions on the spot - proposals don't sell, people do. 

How to Ensure Your JV Success

Once your JV partner has accepted your offer, you can begin planning...

• What needs to be organised concerning the preparation of products and services, marketing, and sales?
• What resources are required?
• Who will be responsible for each step in the process?
• What will be the deadline?
• What will your follow-up procedure be after the JV promotion?
• How will you gauge its success?
• Determine how you will test and measure your results along the way.

A Joint Venture can be very lucrative for both parties if you know why you are doing it for the mutual benefits.  Presenting your offer in a value-added way, and putting a plan in place, can increase your chances of securing and creating a successful JV. 

All the best for your business.

Nicole Murray
Business Development Coach, Hot Chocolate Coaching 

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The information contained in this article is intended for general information purposes only and does not constitute, nor is it intended to constitute, professional advice. For advice specific to your business or life, you should always consult with the appropriate professional in order to determine the actions and laws that are applicable to your particular circumstances.