Partnership Success Story: Joint Venture returns 100X in 12 months
Partnership Success Story: Joint Venture returns 100X in 12 months
Retail Distribution
Company profile:
Blumenthal Uniforms, a privately held fifty-year-old retail business servicing the clothing requirements for private and government professional service providers.
Situation:
Blumenthal had grown into a regional leader of uniforms by adhering to a commitment to one-on-one customer service. This had led to client relationships of more than thirty-five years, steady growth and good margins. However, exponential growth could not be achieved outside its existing territory without sacrificing human contact.
Issue:
Blumenthal’s executive team determined national growth with the existing business model was impossible.
Value-basis at Blumenthal:
Blumenthal has existing intellectual property in the retail sense of the word. It is one of approximately 300 uniform companies in the United States authorized to sell uniforms to the United States Post Office. Additionally, its long-standing business track record enabled Blumenthal to develop preferred delivery and pricing with vendors. Blumenthal executives realized these two company attributes would be compelling to a potential partner.
Partnership strategy:
Joint manufacturing, retail and marketing partnerships were pursued and discounted after revenue splits and customer ownership issues continued to surface. Eventually, the Blumenthal team realized a joint venture with a mail-order uniform company would provide national expansion and high revenue with nominal risk.
Partnership formed:
Joint venture with Postal Uniforms Direct in July 2000
Value proposition:
Postal Uniforms Direct (a new company) run by an established discount uniform company’s manager. Using its on-line ordering, inventory control, warehousing and distribution supply chain, Postal Uniforms Direct takes advantage of Blumenthal’s preferred vendor relationships and pricing as well as its postal uniform license. In return, Blumenthal receives an equitable share of profits without increasing output.
Risk Factor:
Low for the manager of the new entity and Blumenthal; each firm had a track record of running efficient and profitable businesses.
Initial investment:
Thirty thousand from Blumenthal, at the time a ten million dollar business and twenty thousand from the manager (partner) of Postal Uniforms Direct.
Partnership return on investment:
Initial investment returned within the first twelve months of operations. According to CEO Mark Blumenthal, his original investment has yielded a “multi-100 time return on investment”.
For more information on Blumenthal, contact: www.blumenthaluniforms.com
Partnership Success Story Joint Venture returns 100X in 12 months - To learn more about this author, visit Sarah Gerdes's Website.
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Market:
Retail Distribution
Company profile:
Blumenthal Uniforms, a privately held fifty-year-old retail business servicing the clothing requirements for private and government professional service providers.
Situation:
Blumenthal had grown into a regional leader of uniforms by adhering to a commitment to one-on-one customer service. This had led to client relationships of more than thirty-five years, steady growth and good margins. However, exponential growth could not be achieved outside its existing territory without sacrificing human contact.
Issue:
Blumenthal’s executive team determined national growth with the existing business model was impossible.
Value-basis at Blumenthal:
Blumenthal has existing intellectual property in the retail sense of the word. It is one of approximately 300 uniform companies in the United States authorized to sell uniforms to the United States Post Office. Additionally, its long-standing business track record enabled Blumenthal to develop preferred delivery and pricing with vendors. Blumenthal executives realized these two company attributes would be compelling to a potential partner.
Partnership strategy:
Joint manufacturing, retail and marketing partnerships were pursued and discounted after revenue splits and customer ownership issues continued to surface. Eventually, the Blumenthal team realized a joint venture with a mail-order uniform company would provide national expansion and high revenue with nominal risk.
Partnership formed:
Joint venture with Postal Uniforms Direct in July 2000
Value proposition:
Postal Uniforms Direct (a new company) run by an established discount uniform company’s manager. Using its on-line ordering, inventory control, warehousing and distribution supply chain, Postal Uniforms Direct takes advantage of Blumenthal’s preferred vendor relationships and pricing as well as its postal uniform license. In return, Blumenthal receives an equitable share of profits without increasing output.
Risk Factor:
Low for the manager of the new entity and Blumenthal; each firm had a track record of running efficient and profitable businesses.
Initial investment:
Thirty thousand from Blumenthal, at the time a ten million dollar business and twenty thousand from the manager (partner) of Postal Uniforms Direct.
Partnership return on investment:
Initial investment returned within the first twelve months of operations. According to CEO Mark Blumenthal, his original investment has yielded a “multi-100 time return on investment”.
For more information on Blumenthal, contact: www.blumenthaluniforms.com
Partnership Success Story Joint Venture returns 100X in 12 months - To learn more about this author, visit Sarah Gerdes's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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