You’ve had your home based business online for quite awhile but your profits seem to have plateaued. There hasn’t been a significant increase or decrease in income from month to month for the past several months and you’re looking for a way to kick start your revenue to the next level. After careful consideration and after consulting with several, more experienced, Internet marketers you’ve decided to attempt to form a joint venture.
For the uninitiated, according to Wikipedia: “A joint venture (JV or J-V) is a legal entity formed between two or more parties to undertake an economic activity together. The JV parties agree to create, for a finite time, a new entity and new assets by contributing equity. They then share in the revenues, expenses and assets and “control” of the enterprise. There are other types of companies such as JV limited by guarantee, JVs limited by guarantee with partners holding shares. The venture can be for one specific project only – when the JV is referred more correctly as a consortium (as the building of the Channel Tunnel) – or a continuing business relationship.”
You know you’re ready to create a joint venture when you want to increase your profits and expand you’re customer base. You must find a partner who shares these same goals and also believes both parties can be successful with this new venture. Several other considerations are, first of all, where are you at the moment in terms of your profit margin. Are you where you planned to be at this point in time or are you lagging behind your initial financial projections?
This is an important point because if you aren’t where you had planned to be in terms of profit you may want to reconsider your JV project until your home business income improves. It doesn’t make much sense to enter into a new business partnership with all the related costs if it’s going to put you further behind your projected revenue goal for this point in time. You may want to postpone your joint venture until the time is right or until total sales catch up to your expectations at this stage of your business plan.
You also must insure you have the proper business services in place to satisfy your new partner’s needs. For example, you must have the marketing knowledge necessary to be successful with your project and if it isn’t at a level you feel it should be then you need to approach a partner who does possess this marketing expertise. For giving you access to this Internet marketing know-how you must reciprocate in some way by providing your partner access to a service unique to your home business or, failing this, offer a financial stipend as a way to compensate for their service.
Once you’re satisfied you are where you want to be financially and you have the necessary business services in place you must make sure your partner shares the same goals and has the same drive and passion as you to make this partnership succeed. You also must be willing to share your knowledge and be open minded in terms of realizing you don’t know everything and be willing to take advice and learn from your new colleague. A joint venture relationship is the same as any other; it can only succeed through a spirit of communication, cooperation and mutual respect.