The Tribune

By D’Arcy Rahming

In this article I’m going to give you some insider secrets to making joint ventures work. In 1991, I wrote my first book. It was a martial arts book, and for a period of time it sold really well. Sales took off because it was unique for its time, and it was adopted as an official textbook by several martial arts schools that practiced a similar style. This strategy has served me well over many years. In fact, the book still sells, and up to yesterday I received sales on it.

In order to make a joint venture strategy work, there has to be a natural fit between your company and another. There are some obvious fits, such as a homebuilder and insurance, or a medical clinic and a pharmacy. But there are often less obvious ones that small businesses do not think about. For example, a real estate agency and a lawn care company. Or a water company and a sports federation.

This type of ‘grassroots’ marketing is often inexpensive. The insider secret here is to find someone with an established list that they have a trusting relationship with. For example, my barber has been cutting hair for years and befriended many people in the process. But, of all the businessmen whose hair she has cut, how many have offered her any kind of incentive to prominently display their services in her shop? Or to give her customers some kind of coupon or information packet on what their company does?

Another insider secret is that persons with joint venture strategies often do not clearly define the benefits for the party whose customer list they are trying to use. It is the perfect example of WIIFM (What’s In It For Me). When approaching a joint venture partner this question must be clearly addressed and answered. Failure to do this will always result in less than spectacular results, or disappointment. There should be clearly defined terms as well as an exit strategy.

An exit strategy could be as simple as defining when the promotion ends, or mutual terms under which to withdraw with a certain amount of notice. A lack of exit strategy has been the subject of many a lawsuit, at worst, and ill feelings at best. When you manage joint ventures correctly, you will discover many new customers, but be prepared to give as you get. No one will stand for a one-sided arrangement.

NB: D’Arcy Rahming holds an MBA from the Kellogg School of Management at Northwestern University. A lecturer at the College of the Bahamas, Mr Rahming has clients in general insurance, retail, the health and medical fields, sports federations and financial dervices. To receive his marketing newsletter FREE go to http://darcyrahming.com