If you are the owner of a small or local business, then the best and most effective technique to increase you profits would be to initiate a joint venture. Due to its power of leverage a joint venture offers great rewards without one inputting much effort, regardless of the industry their business belongs to.
A joint venture is profitable to all, the partners in the ventures and their shared customers. It is considered as a win-win-win or triple win situation as everyone involved benefits from the deal.
A joint venture
Let us consider an example so that the power offered by joint ventures can be understood clearly. Almost all businesses can be involved in joint ventures, and all one requires is an idea. Imagine a scenario where A, is a local business owner and has a dog-friendly restaurant and B is a business owner manufacturing gourmet dog cookies.
The strategy for their joint venture would be similar to B, creating little doggie bags with a coupon offering 10% discount on purchasing a bag of gourmet treats, a business card and a couple of said treats. A hands out these small treat bags to all customers who enter the restaurant with their dogs. B’s sales increase as more and more individuals start redeeming their coupons. Also, B offers all her customers with a coupon that provides free appetizers at A’s establishment. Dog owners would genuinely be interested in both businesses as they too benefit from these deals.
Since, these arrangements are mutually beneficial and are dependent on the buying habits of customers, economic stimulus is redefined. This is just an example of how a joint venture could operate so now, you can start thinking how to start your own triple win situation like the one described above.
How to start your own joint venture?
The only things required for you to generate an idea are the desire to serve your customers and creativity, since a joint venture is meant to benefit more than one party. Observe your customers and notice their shopping habits. Do they regularly enter your establishment with a shopping bag from a particular business located nearby? If so, you could ask them to offer a coupon or a sample and in return you could offer a sample or coupon concerning your products or services.
Numerous aspects need to be considered while creating a plan, thus it is better to start thinking as soon as possible. Listed below are some questions that will help direct your thoughts to the right direction.
What other establishments located in the neighborhood would your customers like to shop at?
What products/services does your customer require on a regular basis that you do not offer to them?
How can you make yourself fairly popular amongst your customers?
How can you cater to your customers in a better manner by forming a joint venture?
Is there a local business you would be willing to trust with a joint venture?
How will you track the results ensuring beneficial results for all parties?
Once you start keeping your mind open to ideas you will be able to create a plan that is economically beneficial to all.