You may have people talk about JV's or joint venture in the past. You may or may not entirely understand the concept of it all.
Let me explain. (definition by Wikipedia)
A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship such as the Sony Ericsson joint venture.
The simplest of explanation would be that you rather than working by yourself sometimes probably struggling to get enough clients in the door to make a good living, you'd be joining forces with other people.
But all of this is theory, you may like me learn best by going through some practical examples.
Lets get to it.
You can find joint venture partners just about everywhere. However there is a bit of structural and logical thinking involved.
One of the two questions I suggest you ask yourself is
Question 1: "Who has the client before me?
Question 2: "Who has the client after me?"
Say you've got a massage therapy business, people who could have the same client before or after you could be, doctors, personal trainers, dentist, acupuncturists, herbalist, retailers for sports gear, fitness centers etc.
I guess you get the idea.
So what the fitness center owner could do for you is with every new membership he/she sells, they throw in a head/shoulder massage valued at say $25 at your clinic.
In return, you could offer each of your clients to pay $25 towards their gym membership if they sign up for say 6 months.
This way both businesses benefit from the cooperation plus the your clients as well as the gym's clients get more value for their money. So everybody wins.
This sort of arrangement should be considered in just about any business environment, I don't think there are any limitations that I can think of as long as the arrangements are strictly legal.
There is really only one thing that you need to keep in mind. Joint ventures are a really great way of helping each other to grow the business, however, it does take an entrepreneurial mind set of both involved parties for the arrangement to be successful.
I also do suggest that you write up an agreement with what has been negotiated. Depending on the size of the deal, it might be a good idea to get some legal advice on the document, just in case.
Just in case you feel like bouncing some joint venture ideas, drop an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , we're happy to shed some light on how to go about it.
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