Why Joint Ventures Are Worth Your Time
Most new entrepreneurs and business owners believe that joint ventures are difficult and complicated. In fact, when you think of it, being an entrepreneur itself is difficult and complicated, with all the minute details involved with growing a business. Proposing and forming a joint venture is just one of the many important cogs in the wheel of entrepreneurism.
Joint Ventures: Large Successes
Joint ventures can take many forms. It could be a simple as selling advertising space on a menu, or a complicated agreement to combine capital resources in a high stakes moneymaking venture. An example of a high-tech joint venture is a partnership between the Canadian telecommunications company, Nortel, and the China based Huawei Technologies Co. Ltd. Both companies are world leaders in networking, networking products, and broadband access. Through their partnership formed in 2006, they planned to expand the potential market by using combined technologies offering innovative broadband solutions.
The partnership between the two global communication giants involved Huawei’s worldwide leading broadband access combined with Nortel’s voice and networking technologies. The combined products provided extra value and enhanced performance to service providers.
Internet service providers around the world were able to deliver an ultra broadband product that included voice, video, data, and wireless services to both businesses and residents using copper, fiber, and fixed wireless networks.
The successful joint venture created new revenue opportunities for Nortel and Huawei and through their combined strengths, both companies gained a larger market share in the ever-growing broadband and Internet services industry.
Using Joint Ventures for Small Businesses
This type of large-scale joint venture example can be used to see how you can gain a larger market share in your community, region, or even nationally by envisioning a combination of strengths with a joint venture partner. Your potential JV partner doesn’t have to operate next door. Look around and research businesses that offer similar products or services as yours in other parts of your state or across the country. When you find one that you feel has strengths that are synergetic with yours, begin the process of brainstorming JV ideas.
Like in the example above, you could combine technologies and resources to form a better and more innovative product. Or perhaps your potential partner manufactures a product that is a good fit with yours and could be sold as a package. You can simply start a joint venture marketing relationship that allows you to contact and market with each other’s existing clients. A good and creative entrepreneur can think of a myriad of ways that a joint venture could succeed.
If you are an entrepreneur who wants to expand your business, then a joint venture option can be a big winner for both you and your potential partner. Remember that entrepreneurship involves being creative and forming new business ideas and promotions. You don’t have to do it all by yourself. Look around. Find a potential partner. Get enthusiastic about your combined business idea. Your efforts in promoting a joint venture are worth your time to expand business and gain new business partners.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
To discover more Joint Venture Marketing Strategies join his free JV Wealth e-zine.
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