Lowering the Joint Venture Barrier
Inviting someone to participate in a Joint Venture with you should always be carefully structured as an “Offer that is too good to refuse”. This is easier than it might seem, and it is done by creating a large benefit or solving a significant problem for the other party, while at the same time removing the following barriers:
Remove the barrier of RISK to both parties. This includes the risk of alienating, upsetting, or losing his existing customers or losing customers to his competition.
Remove the barrier of TIME invested by the other party (and you should also invest the minimum amount of time.)
Remove the barrier of EFFORT. Entrepreneurs are busy and they will want you to do most of the work if possible. Remember, you’re approaching them, not vice versa.
Remove the barrier of COMPLICATION. Some proposals are very complicated. Complication, many irrelevant facts and the promise of huge, unusual rewards, is often the mark of a confidence trickster. Keep it very simple and straightforward and answer all questions in advance.
Remove the barrier of RELIGION and POLITICS. People are often negatively disposed to certain religions, religious groups or political affiliations. Play down your religious and political leanings until a relationship of trust has been developed, and, even then, business is not about religion or politics.
Remove the barrier of THREAT to the Other Person’s EGO. People don’t want to be made to look foolish or unsuccessful. Keep things simple.
Remove the barrier of LOSS – any loss, including embarrassment, time or reputation.
By carefully structuring your JV proposal to remove the above threats, you lower the barrier to business. Think through the deal from the other person’s perspective. This means doing your homework – credit checks, Google searches, police checks, understanding the other person’s business and Hot Button and obtaining a clear understanding or their needs, wants, goals, drives, problems and dreams – before structuring your proposal.
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