Most entrepreneurs tend to feel frustrated when their businesses do not yield the expected ROIs despite implementing different marketing tactics. However, what they fail to understand is results cannot be achieved from strategies that do not apply to their businesses or its current growth stage.
Every strategy has its own nuances, however, exploring the possibilities of a join venture is a business strategy that is highly underrated. Even though your dream is to become the sole owner of your business, when the chips are down and the business isn’t yielding profit, you should probably give going into a joint venture a try.
There are a lot of mutual benefits to enjoy by sharing costs, risks and rewards. If your partner has a strong presence in a certain industry, it can also help to establish your presence in that sector. This an effective strategy for boosting your sales, growing your audience and professional status. Joint ventures are successful because they are built on social proof, a fundamental principle of persuasive psychology.
“When people are uncertain, they are more likely to use others’ actions to decide how they themselves should act,” says Robert Cialdini in his book, Influence: The Psychology of Persuasion (You can read the book for free here).
Social proof translates to the power of an endorsement from a trusted party, which makes it one of the powerful ways to grow your business. Building strategic relationships with the right people in your industry can have a multiplicative effect on the growth of your business and target audience. But most importantly, it creates a virtuous cycle, therefore, the stronger your reputation becomes, the easier it is for you to build new partnerships.
To kick off your joint venture with a trusted business partner, reach out to people you already know especially those who are most likely to support you. As you build your reputation, you will be able to reach out to bigger players and keep growing your reach and influence.
Of course, the main objective of a joint venture is growth. By leveraging on the resources of your partner, you can supplement your own resources and expand your capacity without making any additional capital investment. For example, you can cooperate with your partner to win contracts that would ordinarily have been beyond your individual capacity. A joint venture can also give you access to your partner’s market and customers without committing your own budget and resources to market entry tasks.
There are different ways you can explore joint venture agreements such as cross-promoting each other’s products and services to your respective target markets, organizing a joint sales campaign and by providing high-quality content to support your partner’s audience.
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