This is the perspective that I need to understand better and I am glad to see that good VC's, are looking at VC deals as relationships. It is interesting that this article suggest that VC's seek out a lot of there partners. Thanks for the article Tshombe!
JV Expert Stefanie Hartman Reveals 7 Keys to Creating a Successful Joint Venture Deal
Learn 7 Keys to Creating a Successful Joint Venture Deal from JV Expert, Stefanie Hartman.(Full Disclosure: I've worked with Stefanie in the past, and this article contains affiliate links, though I'd personally and fully endorse her in any case.)
I was introduced to Stefanie Hartman several years ago by my coach trainer, Terri Levine. Stefanie is an expert on joint ventures, and I’ve had the honor of being selected to serve on her Alliance Attraction Team.
Unfortunately, the timing did not work for me to continue in that capacity, but I learned a great deal about joint ventures directly from Stefanie and her team.
It’s with that introduction and my wholehearted endorsement of Stefanie (and her JV Club) that I reproduce here her 7 tips to creating a successful Joint Venture deal. You’re learning from the best of the best.
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Here are some quick but important keys to creating a successful Joint Venture deal...
- Set Clear Goals: What is the purpose for the JV?
Know from the beginning what you want to accomplish. Is it reduced product costs, expanded sales, or market credibility? Your partners' goals may be different but as long as you know what it is and it work with yours - then it is fine.
- Find a potential partner: Brainstorm on your target market. Where does your customer go? Is there a store or company or service or product that your customer usually goes to or buys before they come to you?
What other needs or wants might your customer have? Where do they go for that? Look for that person who shares your target market in the JV Club.
- Choose your Partner: Make sure their company values match yours. Talk to people who have done business with them. Were they happy? Did they get paid on time? Are they trustworthy? Are their products good? Are they cheap or limiting? Get to know all you can about them.
- Approach as an Equal: Give compliments but don't fawn over them. Not professional and they won't see you as an equal- you'll go into the "fan club" category, instead of equal partner.
- Create a win/win & seduce: Discuss where their interest lies. They may get approached quite often and will only accept a JV deal if it is different.
Not everyone wants money, maybe they prefer exposure or help with something you could help them with. Think of some possible wins for them, then see where they bite. Then ask if any of these fits what they are looking for or is there something else.
Tell them it is crucial to you they are overjoyed with the deal as you want to create relationships with key players that are win/win.
- Plan JV Deal: How can both of you achieve your purpose? How will you track progress or success? Who is responsible for what? [essentially if you are being promoted you do the work]
Timeline? How will sales or new leads be tracked (if selling)? How is the commission divided up? How will you communicate with each other? When does it begin? When does deal end?
Write out your intentions and JV Plan and who's responsible for what on paper. Most JV deals are a 1 time deal and may not require any legal document, but in the least you should write them down and then have you both fax each other in agreement.
If you can't agree or don't like the answers - be prepared to walk away - don't get into a relationship with a bunch of red flags.
- Then once everything is finalized, Honour your commitment to your Spouse: Live up to your side of the deal. Remember you're in a relationship and at times you may not agree with the way they communicate to you or everything they do.
Approach them with the attitude of working towards your goals. Think of the big picture and keep it in mind. You may want to do future deals with them and they need to know that you are great to work with and not being a greedy partner who needs to get his way every time.
Extra Tip: Don't rush into a joint venture without understanding the key concepts of joint ventures. To have the highest success rate in profits and also smooth partnering you want to make sure you have a process to follow.
You know what you want, what they want and who will do what. You also want to make sure that you've done some homework on who you're partnering with.
Visit the Learning Center in the JV Club to increase your knowledge base every month.
Stefanie Hartman is the owner of Stefanie Hartman Enterprises Inc. (SHE Inc.) and the founder of the Millionaires in Training (MIT) program and the Private JV Club. Her programs offer “Revenue Marketing Strategies for Authors, Speakers & Entrepreneurs”
Learn more about the author, Tshombe Brown.
Comment on this article
Posted by Susan Templeton, Bellingham, Washington |
Feb 03, 2010
Tshombe! I just discovered this article. Synchronicity rules! I am forwarding this to my prospective JV partner as I type...be in touch...thanks for the pearls!
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