subject: How To Think Of Ideas For Joint Venture Proposals [print this page] A joint venture is a business term, which means an alliance between two parties or businesses for a specific project. Parties entering a JV will invest equities in the partnership and will share the profit, loss and control proportionately.
Because it is a partnership for a specific project, it is a way of partnering with a company without the complexities of merging. Ford Motor Corporation has formed a JV with Mazda Corporation of Japan to manufacture low-cost sub compact cars for release in Asia and Europe. Ford capitalized on its design expertise while Mazda provide manufacturing and distribution expertise.
JVs are gaining popularity online as well. Start-ups or even established online businesses partner to combine resources in a bid to increase each others online profitability. A recent JV between Skype and TOM Online (Chinas leading internet company) happened to broaden the connectivity of Skypes VoIP services. With such a big move, shouldnt you start looking into JVs yourself? Here are ideas for joint venture proposals that you can use to increase your online business.
JV within the Industry
Do you find other products on the Net that has the same customer base as your business? If so, propose a joint venture with such company. As both your businesses combine, both can profit in each others established traffic and consumer base. In simple terms, thats a 50% increase in both your consumer base. Your JV can be in one or all of the following forms:
-Combine your products together with another businesses into one big package. For instance, you sell accounting software. Why not partner with a merchant of an eBook about Business Accounting. In that way, consumers of your software have the option to learn more about business accounting by buying the eBook. In the same way, readers of the eBook will have a software to use when applying lessons learned on the eBook.
-Share websites, or combine to a JV website, which can feature both your products in one website. This will provide your customers more variety in the product line.
If sharing a website is too complex for you, you may start by simply exchanging links or banners. Just like an affiliate program, but you dont actually gain from it per click, but you sink the profits in the partnership.
-Share testimonials or endorsements for each others products or services.
-Provide mutual advertisements on each others product. Offer to insert your URL or brief product info in your JVs product so that when customers buy their product, they also get information about yours. In return, you will also insert their promotional ads into every sale of your product.
JV with a Consumer
Theoretically, you do not form a business partnership with your consumer, but you can use their satisfaction to market your products. Offer them the following:
-An affiliate program where they will promote your website or product in their website and successful leads will earn them something
-Freebees for recommending others. Free upgrades, mementos, gift cards, or anything that you think they will appreciate in exchange for letting friends and colleagues buy your product as they did.
JV with a Biggie
A radical way of entering a joint venture is to propose a partnership with your biggest threat: the well-established Fortune 500 company. Okay, maybe not a Fortune 500 company, but a well established firm in your industry who could use an added oomph to its services, but is bogged down by its mere size. You get the picture, dont you?
In this kind of joint venture, you have to do your homework. You have to look into the Biggies business and asses the kind of product or service to add into their portfolio, that you can uniquely offer.
If they have a certain product missing in their product line, see if you can provide that single type of commodity, and deliver and additional 5-10% boost in their sales, just by signing you up as a partner. Or, if you are in the far outskirts of the country, offer to distribute their product in your region, to increase their consumer base without spending for logistics set-up and operations.
But remember, in this kind of JV, you get only one chance to offer the biggie. So a good proposal is in order. Make sure that as they read your proposition, they have nothing to say but, Yes.
Build your network with the brilliant ideas above for joint venture proposals.
