Joint ventures, any resources on how to get started ?

kobracai

Hello

Anyone know if there’s any resources/books/sites that teach how to set up joint ventures? I was thinking easy stuff at first: i.e. putting together the clients of a hair salons with a gym, then work my way up as I get experience

The business model sounds pretty easy but I’m looking for more guidance on how to find the right businesses, how to pitch them, how to create compelling offers etc...

I understand it’s off topic as it’s not an online thing, but just asking in case anyone knows

Thank you

somethingcorporate

Start off by understanding what a joint venture is - what you describe is not correct: http://en.wikipedia.org/wiki/Joint_venture

Have you got a local business link? plenty of resources available on the web for free. Google your local chamber of commerce and start meeting people.

InsideInsurance

Sounds more like an agreement to cross market or similar

A JV would be forming a new company to do something which one or more existing businesses input into and share the outcomes

kobracai

InsideInsurance wrote: »

Sounds more like an agreement to cross market or similar

A JV would be forming a new company to do something which one or more existing businesses input into and share the outcomes

thanks... yeah I'm still new to this, so not sure about the exact terminology

what would be the name of it and a source to learn the ins and outs of the business model (if you know) ?

Idiophreak

kobracai wrote: »

thanks... yeah I'm still new to this, so not sure about the exact terminology

what would be the name of it and a source to learn the ins and outs of the business model (if you know) ?

Still not sure how you're intending to make money out of this?

Are you imagining some kind of dating agency for cross-selling?

So a hairdresser will come to you and say "gee, I'd like to get more fit people in here" and a gym will come and say "blimey, I wish some of these people would get a hair cut" and then you set up a meeting and get paid by both of them for the privilege?

It's actually not a ridiculous idea...but I imagine the terminology would be "marketing".

Mistral001

As others have said, it sounds like an introduction service for businesses who want to collaborate with other businesses in a formal way with possibility of merging or becoming partners.


I would have thought that most business people would use their business connections to find such introductions or simply do a google search and lift the phone to contact the businesses themselves.

InsideInsurance

kobracai wrote: »

thanks... yeah I'm still new to this, so not sure about the exact terminology

what would be the name of it and a source to learn the ins and outs of the business model (if you know) ?

You're either just going to be a marketing agency that specialises in this form of cross marketing or you can make up your own term for match making

Of cause it really depends on what exactly your service is. Are you creating effectively a market place for these companies to find each other or are you proactively taking on a client to go out into the wild to find an appropriate match? Or actually are you just educating businesses that these opportunities exist?

As to reading/ learning, I'm really not sure what it is you are needing to learn about this? Its a fairly straight forward concept and most is just general "how to run a business".

kobracai

Idiophreak wrote: »

So a hairdresser will come to you and say "gee, I'd like to get more fit people in here" and a gym will come and say "blimey, I wish some of these people would get a hair cut" and then you set up a meeting and get paid by both of them for the privilege?
.

Basically Katy owns a hair salon, and knows that most of her clientele are 23 year old girls who like to go get fit to go to the club every weekend.

Well, what service or products are those girls going to use that are parallel but not competing?

They probably go to the gym.

The hair salon has a list of customers they email to.

What you do is you all work together to make a gym offer to the hair salons customers. "This special package is only for customers of katys salon"

And Katy then sends an email promotion to her email list selling this package for say 30 GBP. They sell 40 of them.

The hair salon gets a cut of that 1200, as do I. The hair salon and the gym can entice each other customers on top of that

Isn't this like a small business joint venture?

kobracai

Mistral001 wrote: »

As others have said, it sounds like an introduction service for businesses who want to collaborate with other businesses in a formal way with possibility of merging or becoming partners.


I would have thought that most business people would use their business connections to find such introductions or simply do a google search and lift the phone to contact the businesses themselves.

Katy at the hair salon probably wouldn't do it on her own or through her connections because
1) she hasn't thought of it
2) she's a hairdresser, not a marketer, and is probably more worried about the operational side of the business
3) she thinks it's too complicated
4) she's too busy cos she just has managed to get all the seasons of 90210 on Netflix ! LOL !

jokes aside...what would this be called? English isn't my first language so probably that's why I can't find the right words...

InsideInsurance

kobracai wrote: »

Isn't this like a small business joint venture?

No, because they havent created a new company together. A JV is very explicitly defined.

To take another example ABC Bank approaches XYZ Insurance and says they want to be able to market ABC branded insurance. XYZ offers to create products for them, sell them and service them answering the phone ABC etc and will pay ABC £50 per policy that is sold and runs for more than 30 days. ABC in return will market these new products to all their customers

This is an affinity/ affiliate/ white labeling deal not a JV because there is no new legal entity, there is no "following the fortunes" etc.

Now ABC decide they want to do this but want to be more involved so that it fits their customer base better etc and so ABC and XYZ decide to form a new company A2Z where ABC owns 49% and XYZ owns 51%. Both companies put in the £50m each required as capital against the insurance they'll be writing. A2Z hires its own staff to man the call centres etc and at the end of the year any profits are paid out as dividends back to ABC and XYZ at a 49/51 ratio

This 2nd example is a joint venture.

Mistral001

This has nothing to do a joint venture as Insideinsurance has said.


It is basically marketing. To be honest most customers are fairly cautious of such deals. Discount vouchers or a club card might be better.


PS. Most hairdressers I know are very good at business and do not need much help in promoting their business.