| Much has been said and written about the benefits | | | | needs or wants, or a perceived niche may be |
| of a joint venture: more revenue for your business, | | | | saturated. A commitment to a joint venture should |
| shared resources, larger and more focused marketing | | | | always have an exit strategy for any type of |
| lists. But in your pursuit of a valuable and successful | | | | negative reaction. This means internally as well. You |
| joint venture, there are mistakes that could bring | | | | and your JV partner may find that your work styles |
| down not only your JV, but your own valuable | | | | are not as compatible as first thought. Or you may |
| resources, reputation, and credibility. Here are some | | | | simply find that the JV requires too much of your |
| of the biggest JV mistakes to avoid. | | | | time that could be devoted to your business. Be sure |
| 1. Sharing Private Client Information | | | | to always have an exit strategy agreeable to both |
| Indeed, one of the biggest benefits of a JV is the | | | | parties. |
| opportunity to share contact lists and use them to | | | | 3. Failing To Check Your JV Partner Thoroughly |
| expand client bases. But you should first be sure that | | | | One of the worst JV mistakes is to pick a JV partner |
| your clients or customers are comfortable with | | | | who ultimately hurts your own business or reputation. |
| allowing their private information to be shared, such | | | | For instance, your joint venture partner's products |
| as address, phone number, demographic data, and | | | | may not be as high quality as you first thought. Your |
| other potentially sensitive information. | | | | old, current and new clients may wonder why you |
| This could lead to big problems if a client is disgruntled | | | | would endorse such unworthy merchandise and leave |
| about receiving unwanted mailings or contacts from a | | | | your business as a result. |
| business in which he has no interest. Your own | | | | Or in another potentially harmful situation, you find |
| reputation as a trustworthy vendor or service | | | | out after forming a JV that your partner is involved |
| provider could be tarnished. | | | | in a highly public lawsuit. It might be for bad products, |
| First, whenever you gather information about your | | | | or maybe he was involved in unethical dealings. In any |
| clients, you should always ask whether it is | | | | case, your association with such an individual does |
| acceptable to share their information with other | | | | not a shine a positive light on your business. Be sure |
| business alliances or partnerships associated with your | | | | to know without a doubt that your potential JV will |
| business. Always assure them that their information | | | | be a good asset for your clients and customers. |
| will never be sold. Rather, they should know that | | | | JV formation requires proper due diligence and careful |
| they could receive other valuable offers from your | | | | planning - just like any other business strategy. |
| business partnerships. | | | | Before you commit to a JV, make sure you are not |
| 2. Committing to Long Term Without an Exit | | | | falling into one of the above mistakes, or expose you |
| Strategy | | | | and your business to other potentially harmful residual |
| A JV idea may seem great at the time you form it, | | | | effects. Do the due diligence and your JV will be built |
| but ultimately it may not be what the public market | | | | on the road to success. |