The Power Of JV Partners
A joint venture is the most sought after partnership between online businesses that has seen an unprecedented rise especially since the inception of internet marketing. It provides an easier avenue for businesses entering the highly saturated virtual industry by reducing the barriers to entry and generating substantially high revenues in a relatively short period of time. Online Joint Ventures are based on the increasing prevalent notion that it is better to join hands with a competitor than to go head-to-head against him. With an increasing number of online businesses, this notion has gained unassuming importance to ensure their sustainability in the face of increasing competition.
Joint Ventures are a strategic tool implemented through an increased collaboration between online businesses to significantly enhance their business prospects. A stronger online presence is created through such joint ventures, ultimately a win-win situation for all the involved parties. Previously unaware of the significant outreach and impact of joint ventures, small businesses were competing against each other for a small portion of the online market share instead of pooling their resources together, However, that has changed significantly and an increasing number of online businesses are joining hands to expand their virtual market share and are inherently realizing higher revenues and profitability.
A common misconception that stems from lack awareness on the part of the business owner is that joint ventures are the same entity as mergers. As a matter of fact, they are far from it. After a merger, you as the ex-online business owner will be just another bystander and thus have no say in the day-to-day operations of the online business. Whereas under a joint venture, the business owner retains complete ownership of his online business and operates as a working partner. Start-ups and small online businesses use this strategy to fend off large competitors in their respective industries through the creation of a distinctive identity that does not favour either party. With a significantly lower spending on time and resources, the vested interests of both parties are preserved and the realization on sales and profitability is significantly higher.
What does a business tend to gain from an Online Joint Venture?
In spite of the initial resistance, large businesses are finally giving in to the hype surrounding internet marketing and have set-up online components for their businesses. They have invested a significant amount of capital and resources to set up a lavish online platform for their sales. A small online business like yours and mine does not have a chance when competing against such unyielding financial strength.
However, there have been instances when small businesses have given the big giants a run for their money. If you give it a deep thought, every successful online business has had humble beginnings and the owners have built on the strengths and improved on the weaknesses to challenge ventures with a large online market share back then.
Since then, times have changed and so have market dynamics. Patiently waiting for the organic growth of your online business that often takes months, is time you can ill afford to lose. You need a tool or resource that provides quick yet sustainable results. This is where the power of Online Joint Ventures is truly applicable. Not only does it provide you with a concrete foundation to challenge big market players but the financial intimidation factor is also absolved to a certain extent. With the combined resources and talents of the employees, the task of challenging a market leader does not seem daunting anymore.
Major hurdles in Online JV partnerships
The world of online joint ventures seems relatively rosy and less bumpy compared to the individual businesses that tread the solo path for market recognition. However, finding a joint venture partner and getting the JV approved are major hurdles faced by a majority of online businesses. Two fundamental questions often leave them startled when enquired by a prospective partner. Why would another online business want to help you promote your product on top of the thousands of products that they are already marketing? What kind of leverage can you provide that is advantageous to your potential partner(s)? The key to answering these questions often requires years of networking and building long-term corporate relationships.
Even before your online business goes live, it is essential to get word out in the market about your products and services. Attending conferences, convening on an intermittent problem, will eventually gain you recognition in the specific niche market. Attending product launches and conducting marketing activities for potential clients and networking are some additional measures that you can undertake months or even years in advance. Established online business owners are more comfortable in partnering with individuals that they are familiar with, and those that have done them a favour in the past, as opposed to complete strangers. As such, the aforementioned measure will potentially serve to higher your chances of landing a lucrative Online Joint Venture.
Joint Ventures are an exciting prospect for online businesses. It opens new doors and avenues for sustainable growth. Higher revenues and profits are realized with a significantly lower investment of time, capital and resources. However, a great deal of research has to be undertaken to ensure compatibility and avoiding a clash of interests between Joint Venture partners.