First you will have to know your company, inside and out. That means that you have a clear understanding of your own vision, and you also know how the public receives you. Once you have determined these elements, it will be the rock on which you are founded. When searching for the right partner, your vision cannot be compromised - and if that means moving onto the next candidate, then that is the only option in a win-win joint venture.
Analyzing prospective partners
Next, do your homework to find a company that is genuinely interested in a joint venture. If you are a small business, you can look for other small business to team up with - allowing 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 separation
Once you have found the company which compliments yours, plan your divorce. That's right, plan your divorce. This is a business tactic used by many, where in forming a united front, you carefully consider everything and anything that could go wrong. You cover all of your bases up front. This ensures confidence in each entity and gives you both a clear future because you have removed the fear of the worst case scenario.
Open the lines of communication
Now that you have formed your marriage/joint venture remember that relationship will require 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 problems is crucial. These issues can grow into such a large problem that they ultimately destroy the joint venture unnecessarily. Communicate on a regular basis. The agenda 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 strengths and weaknesses and have shared ideas and compromises, make a plan together. Agree upon suppliers, your structure, and allocations. Be sure to do this together.
If in completing 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 crucial to fulfilling your own vision. If you stay grounded in the fundamentals, the company you joint venture with will form a win-win situation.
Copyright (c) 2008 Christian Fea
Advantages Of Joint Ventures
One way to avoid this swamp, though, is to do a Joint Venture with established eBay sellers. This allows a JV partner to build her own mailing list and sell products off eBay.
There are multiple advantages to this way of doing business on eBay:
1. The biggest uncertainty for would-be eBay sellers is what products to sell. Sometimes vendors risk large sums of money on untried products, only to lose their investment, become sour and give up. With a Joint Venture there is no risk except for a few hours of time.
2. Since there are no auctions listed on eBay, no one can steal copy or pictures from JV sellers - because there is nothing to copy. In effect, we become invisible - no one even knows we exist and this hidden aspect has many advantages.
3. eBay JVs are usually done with a digital product that can be instantly downloaded. This is great for any entrepreneur because inexpensive auto responders mean that her entire business is handled via autopilot. Contrast this with the usual way of doing business on eBay which involves mailing dozens, hundreds or even thousands of boxes.
4. eBay and PayPal have lots of rules. It's easy to break some unwittingly, and even the most honest seller does so from time to time. A JV merchant isn't answerable to eBay, however, but only to her customers.
5. A JV seller never directly lists on eBay, thus avoiding eBay and PayPal fees.
6. Successful Power sellers have large numbers of customers and there are lots of administrative details involved. Implementing a sales system can cost time and money because without attention to detail packages won't be mailed in a timely fashion, payments won't be accurate, and items will be sent to the wrong buyers, and so on. A JV partner eliminates all of that because all transactions can be funneled through a hands-off system.
7. eBay selling lives or dies through the 'feedback' system. Negative feedback can kill sales instantly and lack of feedback causes buyers to hesitate and choose other sellers. Feedback is totally irrelevant to a Joint Venture seller because she is using the reputation of carefully chosen other sellers. She knows in advance that their feedback is high quality or she doesn't do deals with them.
8. Inexperienced sellers sometimes drag wiser merchants into price wars. In a panic over sales, they foolishly slash prices, beginning a chain reaction that results in bare bones bids that allow no one to make any money. A Joint Venture seller floats serenely above such hiccups in the marketplace.
9. Best of all, a JV seller doesn't settle for a one time sale. She concentrates her efforts on a mailing list of happy customers that she can sell to again and again and again. In this way, not only is she ensuring repeated profits, but she gets paid for creating this list, rather than having to pay someone else for names.
With its 147,000,000 registered users, eBay is the best source of targeted, Net-savvy buyers on the web. By putting together Joint Venture deals with established sellers, anyone can add large numbers of qualified buyers to their database efficiently and inexpensively.
Both Christian Fea & Vikas Bhagta are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Christian Fea has sinced written about articles on various topics from Partnerships, Joint Venture and Business Plan. Christian Fea is CEO of Synertegic, Inc. A strategic Collaboration Marketing consulting firm. He empowers business owners to discover and implement Integration, Alliance, and Joint Venture marketing tactics to solve specific business challenges. He demons. Christian Fea's top article generates over 22200 views. Bookmark Christian Fea to your Favourites.
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