Reaching Untapped Markets Through Joint Ventures

Copyright (c) 2008 Christian Fea

When you think about growing your company, what untapped markets are you just itching to tap into? Does the prospect of reaching that untapped market segment seem just out of reach?

Instead of taking the Lone Ranger approach to business and trying to reach that market on your own, how about considering other companies that you know who are currently reaching those markets? Instead of trying to reinvent the wheel, take a look at whether or not this might be an opportunity for a joint venture marketing project.

If you and another company serve similar, but not identical, market segments, this strategy makes great business sense. You tap into a portion of the market that they aren't tapped into, and they, likewise, have a relationship with a part of the market that you don't. By sharing your market resources in a joint venture agreement, you can both promote your businesses to a larger market and remain in front of your existing customers, while bringing them value-added information, products and/or services. You gain, your joint venture partner gains, and you both build loyalty in your customer base. How much better can it get?

Take a look at a real life joint venture situation. A small construction firm noticed that they were often getting called in to help fix remodel and construction disasters from unscrupulous contractors. They came up with the idea that there might be a market for construction and remodeling consulting services for both do-it-yourself remodelers and ordinary homeowners.

The consulting service would offer an outside opinion that would to help to protect clients who were considering a remodeling or construction project by helping them to have a clear idea of normal costs, normal contract language, and outline any potential problems they might not have considered before they entered the project. Instead of trying to only market to their existing database, they considered whom it would be that would reach the most likely candidates for their service.

It was decided that they would approach the people who often provide the funding for remodeling and construction projects ~ bankers and mortgage brokers. The brokers loved the idea of being able to refer a service to their clients that would help to protect their interests in the long run. In return, the brokers were able to tap into the construction company's database and offer financing options to them. Both parties were now offering a value-added service to their clients and tapping into previously untapped markets. A couple of the brokers even arranged joint advertising in some real estate publications. Both the construction company and the broker split the cost of the ad, while reaching a broader market than either of them could afford to reach on their own. That is the point of a great joint venture. You not only maximize your resources, but you maximize your growth as well.

Take a look at who is reaching a market you want to reach. Would there be an effective way for you to joint venture and increase visibility in the marketplace for both of you? If so, it may well be worth a cup of coffee and a brainstorming session to find out.