Marry Your Competition by Joint Venturing

A good way to increase profits, reduce risk and broaden your market is by joining forces with a competitor. Maybe not all the time but a project or two may be a good way for both of you to grow your businesses and to see if a long-term association is worthwhile. If you have multiple businesses, the joint venture may be just one of those businesses, and the others you continue to run on your own. For instance, if you’re both life coaches, you can offer more seminars in more places for mutual benefit. A shared company name will also help to brand your services.

However, be careful. Make sure the venture is on an equal footing. It’s probably a good idea to get a legal agreement that clarifies exactly what is shared and who is boss, things like that. A legal document gives you the way in and the way out, if you need to end the venture.

It’s imperative that there’s a business plan for the venture. The plan should detail what the goals are and how you’re going to reach them together. You can’t be working at cross purposes if you want to succeed.

Of course, the most important factor in a joint venture is trust. Without mutual trust and openness what could have been a successful venture (the usual result of a joint venture is success) will fall flat on its face.