Many people who get involved in Joint Ventures recognize only a small portion of the value of the endeavor. That’s because they’re thinking tactically, instead of strategically; there’s a vast difference between a strategist and someone who just sets up a JV to accomplish a short term business goals.
Strategists always look at the big picture, the back end and the possible ramifications and corollaries of the venture. They look for the ripple effect, the connections and links that can and do result from successful alliances. Like a chess player, the strategic thinker is always looking beyond the quick buck and the obvious. He looks for the implications down the road. Strategic Joint Venturers position themselves to benefit from on-going relationships and the trust that is built from doing business with ethical partners.
It’s important to strategists not to JV with people who are desperate, unethical or incapable of sustained relationships. They should avoid people with a pattern of erratic behavior. Smart Joint Venture brokers look for stable partners with a good track record and enough money or additional JV income for other sources to carry them through difficult times. Partnering with weak, overly aggressive or dishonest people will not build wealth in the long term, but rather sabotage your efforts down the road.
Strategic thinkers are likely to consider a loss or break even on the front end in favor of a lucrative back end. They will lose a battle to win a war, pay the price to position themselves, and always monitor their partner’s activities and integrity. They do not reveal their long term plans to all sundry and they tend to work hard on relationships with good partners, because they know how hard it is to find honorable and capable entrepreneurs.
So, while a JV can provide a nice quick fix, strategists often throw out a bone that provides some easy cash flow in order to test their potential partners – “faithful in little, faithful in much”. If the JV partner handles the JV well, whether it succeeds or fails, especially when it fails, the strategist knows what he or she is dealing with. Follow the tongue in the shoe instead of the tongue in the mouth. Talk is cheap, but money buys the whiskey.
The DollarMakers Joint Venture Forum was created to provide JV partners and educate them. At the time of writing we have 465 Members around the world. Those who do not abide by our Code of Ethics are fired or their Membership is simply not renewed. Even then, Members are invited to contact me directly for more information on Members with whom they are considering a JV. By educating our partners, we all win. By insisting on integrity, we protect each other. By reporting bad behavior, everyone wins.
Think globally and strategically. Keep the big picture in mind. Resist the urge to compromise your values, and be very selective whom you work with, and the world is your oyster. I believe Joint Ventures is the best possible business to be in. After 19 years in business as a JV Broker, I have yet to find a better option. But then, I’m a strategist.
Robin J. Elliott
Why a Joint Venture is also called a Strategic Alliance - To learn more about this author, visit Robin Elliott's Website.
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