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The Power and Reach of Joint Ventures

Written by: Robin Elliott

Article Overview: The puzzles that I enjoy are “value” puzzles: How to connect the dots and link the right people and resources in such a way that I create massive, unprecedented value. It’s called Joint Ventures.

The Power and Reach of Joint Ventures

It’s amazing how many people I see doing crossword puzzles. In coffee shops, on planes, in airports, in trains. Rika likes doing jigsaw puzzles. Many people enjoy chess. They’re all solving problems and making connections. When I first read Zig Ziglar’s statement, “You can get anything you want out of life, if you’re prepared to help enough other people to get what they want”, I realized that the more value I could create and the more people I could reach, the faster I would reach my own goals. So the puzzles that I enjoy are “value” puzzles: How to connect the dots and link the right people and resources in such a way that I create massive, unprecedented value. It’s called Joint Ventures.

This is how I’ve done business and done well for nineteen years. We don’t have to create competencies; we can borrow them. We don’t have to own or buy resources – we just need access to them. Ericsson and Sony work together. Disney, Amex, Pfizer and IBM all excel at Joint Ventures. Wal-Mart formed a Joint Venture with Mexico’s Cifra, which significantly shortened its learning curve about the Mexican market. It is said that 20% of the revenues of large companies are the result of Joint Ventures and that 50% of those Joint Ventures are with their competition, yet only 1% of small and medium businesses understand and use this powerful business tool to create fast and large profits at virtually no cost or risk. It’s all about leveraging exiting resources and hidden assets. And it requires a certain mindset. And it doesn’t take years of academic study; it takes one day to get started.

The most important component of a successful Joint Venture is finding the right people to work with. One has to be careful to select ethical, professional people one whom one can rely. Secondly, you have to learn the mindset and understand how to select and approach potential Joint Venture partners and then to set up the deals in a win/win, no cost or risk manner. Once you get it, it’s like riding a bicycle or becoming a physician – you can work anywhere in the world, without any resources. Everything you need is already available through someone else. Brokering Joint Venture deals is a wonderful and very rewarding game. It’s better than jigsaw puzzles because it creates value wealth, and great relationships. Real money, real fast, in the real world, with no downside – that’s why I love Joint Ventures. Remember “Six degrees of separation”? It’s true. And “What goes around comes around”? It works. I set up one Joint Venture yesterday that instantly exposed me to four thousand people. On my own, that would have taken a lot of time and money. Together, we can do amazing things.

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Related Forum Posts
Joint Ventures?? - I read this following paragraph in another business forum. Has anyone used joint ventures and had successful results? How do you go about setting up joint ventures? [quote:3vnvuml9]Joint Ventures have been, and always will be one of the most powerful marketing tactics ever, and for good reason. They are easy to set up, and they cost you nothing and if set up correctly will allow you to have more customers than you can handle! So if you promote a great product or service and want to expose it to more prospects, or you you seek ways to increase your sales, but aren't quite sure how to go about it you should definitely consider harnessing the power of Joint Ventures And the best part is that anybody can start using joint ventures to skyrocket their profits. It doesn't matter what you sell, or where you sell it.[/quote:3vnvuml9]
Re: Marketing a company - Get their contacts from someone who had been marketing to them before and do Joint Ventures with the guy
Free Ebook on Joint Ventures - Julie, you might be interested in the free ebook offer through Dollarmakers.com on Joint Ventures that has upto 30 variations for a small business to create joint ventures. Once you've read it I'd be happy to share more advanced ideas based on the book.
Different types of funding - Business Relationship Funding This is another source of funds that can be overlooked. It may be possible to introduce potential alliances to add value to both parties. It may produce an ultimate exit route in the medium to long term. Joint Ventures: Requires a legal agreement embodying the deal and another company Partnerships: Two companies collaborate with possible funding. Joint working relationships: These are an informal partnership which may be more project specific where the parties can share resources. Agencies: These can be geographical or product specific and generally incorporates a payment for the right to the agency. Distributors: Very like an agency but may not necessarily involve up front payment. Alliances: These do not require a separate company and can be embodied by a legal agreement to work together. Trade investors: Otherwise known as Corporate Partnering. This can be a good way to involve a much larger company in the business with a view to possible trade sale further down the line. Associates: This can be a loose arrangement with no fundamental commitments either way, rather like a preferred supplier. Equity Swop: Two companies exchange shares to a similar value to develop both businesses. Franchises: This can allow the business to grow without further direct investment. Licensing: This involves licensing a product or service to enable others to sell it. This requires you to own the intellectual property.
Women Entrepreneur Tips - Thank you LeoOliveros, I found #4 particularly true in my case: 4. The Enterprise Must Include the Power of Power Networks. As a conductor of your own enterprise, you can not see yourself as a one-woman-show. You must choose to utilize the power people in your life, by asking for help when you need it, and effectively delegating in order to capitalize on your strengths and that of your power network. When certain experts are not represented in your power network, you must actively seek advisors or mentors and develop a team of specialists, so the benefits are received by everyone involved in the power network - the true Power of Power Networks.


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