How Can Joint Ventures Improve Local Small Business Profits?

If you own a small business, whether it is a bricks-and-mortar business, a service business, or a company operating primarily online, joint ventures can give you powerful influence in the marketplace. Joint ventures provide a huge reward for less effort because of the power of leverage.

A joint venture in business is simply a triple win, or a win-win-win. It happens when 2 (or more) business owners do a deal that not only benefits both businesses, but also serves the customers. There MUST be a win-win-win.

Let me give an example so you can understand the power of these profitable arrangements. There are many kinds of JVs that you can organize. This example is for local business owners. Imagine this scenario. Sam owns a dog-friendly restaurant. Sarah owns a gourmet dog cookie business. They form a joint venture that works like this.

Sarah makes little “doggie bags” with a couple of her gourmet treats, a business card and a coupon for 10% off the purchase of a bag of gourmet treats. When people go into Sam’s restaurant with a dog, they get one of the treat samples. They go into Sarah’s business and redeem the coupon. Sarah hands out a coupon to everyone who purchases from her shop offering a free appetizer at Sam’s restaurant. This is a good fit because people who own dogs would be interested in shopping at both businesses.

These mutually beneficial arrangements re-define economic stimulus, because they are based on people’s buying habits. This is only one of many ways a joint venture could work. Why not put on your thinking cap and consider how you might work out a win-win-win scenario like what I have just described?

All it takes is a little creativity and a deep desire to serve your customer. Find out what else your customer buys. If you notice that people often come into your business carrying shopping bags from a particular nearby business, you have the basis for a joint venture. Could you ask them to offer a coupon or a sample? And could you in turn find a way to give your customers a discount or sample of theirs?

Some questions you can ask yourself to get you thinking:

Where else do your customers like to shop?

What other products/services are a natural fit for your customer?

What else do your customers want and need that you don’t intend to provide yourself?

How can you make these customers to think of you as their hero?

Whom do you know in a business that your customers would also like to frequent?

Whom do you trust in a complimentary business?

How can you better serve your customers by forging joint ventures?

How will you track results?

Start stretching your mind and your expectations and create your own economic stimulus plan through the power of joint ventures.