Be Prepared To Expand With a Successful Joint Venture
Be careful of what you wish for, as you just might get it - with a joint venture! While working on your small business, you may find you want to grow, but are limited by the resources, money, contacts, or whatever business element that holds you at bay. Expanding small business takes strategy, time, and most importantly, money. But what if you had help with your expansion? What if you paired up with a joint venture partner who has the resources your business needs to get revved up and going at full speed?
Many business owners view JVs as a way to make a little income with little work. The truth is that JV partners get out what they put into it. With the right partner, your JV could take off like a turbo jet. But if you and your JV partner really want to expand into big business with your venture, here are a few ways you can do it:
Find the Niche
A successful, long-running business fills a needed niche. A niche, in architectural terms, is a receded empty space in a wall or corner. A good designer can "fill" the niche with the right art or other complementary object. Your job in business is to identify the "empty" space in an industry that you can fill with your product or service and is in demand by consumers. By specializing in a defined niche, you can take the lion's share of the market.
Open New Locations
Your JV may be so popular and successful that you must expand by opening new locations. This may be simply opening chain stores within your local community or finding new retail stores across a region or country. This type of expansion usually requires a great deal of capital and additional HR staff to manage the locations and handle additional staffing. Be sure your JV agreement is set up with a combined strategy for capital and JV staff management.
Acquire Additional Businesses
Rather than expanding one-by-one with new stores, you and your JV partner may choose the strategy of acquisition. By buying out an existing business, you can already have in place the locations, equipment, staff, etc., you need to hit the ground running. Again, acquisitions must be handled with a great deal of available capital or financing capability, and plenty of analysis with the use of ROI and feasibility reports.
Go Global
If you have discovered the right niche that is in big demand, you may want to take your JV and focus on global expansion. Prepare your JV widget for mass production and exporting, or tailor your service for international sales. With a successful global expansion strategy, you can really see your business expand and profits jump.
There is no harm in thinking big. When you form a JV, don't just consider the short-term gain from a small venture. Look ahead at the possibilities of big expansion for both you and your JV partner by combining your efforts and resources on a national or international level.
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Location based mobile apps such as Foursquare and SCVGR are another way for small businesses to reach customers that are actively using their mobile devices to update friends and followers about what they are doing including being your customer.
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