Joint Ventures: A Path To Additional Profits And Revenues

There exists an excellent path that can deliver additional revenues and greater profitability in addition to improving your visibility, client list and long-term viability, all with minimal cash expended. It’s called a “joint venture”. Think about it. It’s not the same as a long-term partnership (although it could be), there are no legal entanglements and protracted contracts, no inventory increases, no additional advertising necessary (although it may help) and there is lots of potential for new business and new customers. Sounds too good to be true!

Consider creating joint ventures with companies which are symbiotic to yours, providing an add-on service of product to sell to your existing clients while your joint venture partner provides all the development and inventory to support your additional marketing effort and sales. It’s a marriage made in heaven – no commitments and all benefits, low investment, high return. For example, let’s say you’re selling bicycles. Why not enter into a joint venture with a clothing company or retail store to put out a line of clothing suitable for a bicyclist that would attract sales without additional investment? The joint venture partner has already made the huge investment and has inventory ready to sell. The joint venture partner could be either vertical or horizontal, it makes no difference so long as it is new and somehow associated with the same customer base you currently service thus attracting increased sales without additional investment or risk.

Better yet, your joint venture partner is doing the same thing with your line of goods, adding it to their marketing program with you providing product and resources for them. It works two ways; both expand each other’s markets, client lists and gross sales with a higher net profitability and neither invests much additional capital, development, time or effort. The same applies to advertising. Each adds to each other’s advertising effort and both get a real hit without it costing one penny more. Same ad space, additional product, double the impact at no additional cost. Another win-win for both parties.

If it works you continue and if it fails you withdraw, no profit split, no equity split, no issues, just mutually beneficial alliances that yield greater profitability and additional gross revenue. All that is required is imagination to figure out what works together and who to work with, what kind of products and which business. Then, put it together. Use each other’s inventory and sales efforts and away you go! It may sound complicated but it really isn’t. Have your lawyer draft a joint venture agreement before you start just to make certain everyone is on the same page and then try it out. There’s no reason that you cannot have many joint ventures going at once even.

Call me for more information. Norm will set you up with a no-obligation teleconference.