How to Create a Successful Joint Venture

How to Create a Successful Joint Venture

This article is an excerpt from a book called "Successful Joint Ventures," which will be available for purchase shortly.

What was your first successful joint venture, and what did you do to make it so?

Hello, I'm Valerie Vauthey, and I'll be right back. When I'm not working, I'm the CEO and founder of MyPrivateCoach.com, the fastest-growing coaching firm in North America and Europe:

I'd like to share some of my business and, more especially, joint venture, stories with you.

Already, I've been involved in FOUR joint ventures, all of which I've successfully expanded and sold. Three of my first four joint ventures were huge successes, whereas the fourth was a flop (even though I didn't lose a penny).

I believe I've figured out why one of the JVs didn't provide the expected income after reliving the successes of the others.

A high-tech business using artificial intelligence in financial markets was the first joint venture I ever formed. It was vital for me to locate a 50/50 partner who would be the technological side of the firm since I was not a technology guy. I'd be in charge of sales as well as serve as the company's CEO.

As far as success is concerned, there is only one CFOS: A search for a suitable companion What you need in a spouse is something you don't have and won't be able to get on your own. This needs a strong sense of self-worth since one must recognize and accept one's limitations. In order to find a good spouse, you need to have a good relationship with the person. Not a person you met at a trade show or on a social media site and simply exchanged a few emails with. If you've met someone online and discovered that you have a lot in common, it's tempting to become enthusiastic. However, as the French say, "do your research" before leaping into a relationship. 

Without a suitable partner, your joint venture is doomed from the start. Is there anything worse than a bad relationship? It's possible to be deceived. And the best part is that it's so simple! Because this companion is privy to information that you are not! Another partner who is expected to deliver sales or access to hundreds of thousands of people might deceive you by revealing himself or herself as a charming speaker with nothing in the basket of business (another French expression; o) It was one of my many blunders to blindly trust and obey my companions, which has taught me a lot. If you've ever had an opportunity to collaborate, you've probably been contacted by someone who has a great deal of influence and whose job is to get others to know about your product. But what about the billions of people we'd have to get in touch with? It never came to fruition! That's not a problem. We'll all slip up from time to time. A lesson in life is a lesson in life as long as we take anything away from it.

So keep this in mind:

You can decide on a partner you know, and ideally one who is knowledgeable about the subject matter.

Your coworker should provide expertise and knowledge that you do not.

There should be individuals in your partner's network you don't even know about.

Select a business partner that can back up his or her claims about sales pipelines and vast distribution networks.

CFOS is the number one choice. I chose Kimberly Wells, one of our fantastic coaches here at MyPrivateCoach, to kick off my newest JV. I'm seeing things clearly. She has the necessary abilities. Our personalities mesh well. One of the goals was to launch a 99-cent-per-day online boot camp. In the last several years, I've known Kimberly. We'd had plenty of time to talk and get to know one another. Within a few days of launching www.30dayBootCamp.com, our initial bootcamps were selling out quickly.

CFOS is the number one choice. In a bad example, two years ago I created a website with a stranger who claimed to have access to millions of email addresses. These addresses were, of course, not real. I now see why it's so difficult to establish a substantial number of subscribers. This was a waste of time, but it didn't cost me anything. It might be that while I was sleeping, my feminine intuition was speaking to me! As far as I'm concerned, it's still a failure.

Timing and vision are the second most important CFOS in a joint venture. Those that begin a joint venture do so under duress. They are more interested in achieving success now than they are in doing so in the future. A joint venture (JV) does not operate like a "normal" firm, where a chief executive officer (CEO) is in charge of leading the team. In today's typical understanding of a JV, each partner has the same amount of authority. Your sense of timing must be in sync since both partners have the ability to pull the trigger on the business at the same moment. How much money do you want to earn in the next six months? Does your spouse aspire to earn 10 million dollars in the next 12 months? Is this something you'd want to do as a hobby or as a side hustle? If so, is this person in it for the long haul? In other words, you're condemned to failure if you don't have the same perspective on things (vision and time).

So keep this in mind:

Choose a business partner that shares your vision for the company's future growth and development (a side-business or the next Microsoft).

Choose a partner that shares your outlook on when success will come to fruition.

The second is CFOS. As an example, we share the same goal for www.30dayBootCamp.com with Kimberly Wells. We want to be the go-to resource for anybody looking for bootcamps or self-help resources on the internet. To help us stay on track, we've set a 12-month deadline for ourselves to achieve our goals.

The second is CFOS. The following is a bad example: We had a huge difference of opinion when it came to the concept and the timeline of the project with my unsuccessful JV. Because I was preoccupied with another business, I didn't feel the same sense of urgency as this individual had. I could wait. We were unable to collaborate due to these two fundamental (or should I say "essential") differences.

Taking this into consideration, let's see how much time you've got.

When starting a business, one of the most critical considerations is time. This will be our third Chief Financial Officer of the State (CFOS). The lack of time or inadequate time management is a typical reason for JV or business failure. The odds of succeeding in a JV while caring for your family, working full-time, and having a busy social life are slim. So, do you think that's a lot of pressure? Maybe a little rough love is in order! However, you must devote all of your time and attention to your new company enterprise. Your whole focus is required for a brand-new effort. Isn't it possible to strike a balance between your personal and professional life? In my opinion, there is no such thing as a healthy work-life balance during the initial few months of a startup. You must have an understanding partner and a supportive family to succeed. Strive to achieve your goals and don't be fooled by people who attempt to sell you pricey seminars and teleclasses to convince you that you can become wealthy and famous without putting in any effort. Giving your time away to others or projects is one of the most common causes of failure. Stay focused! only one new company at a time. Do not be concerned. Your personal and professional lives will be back in harmony as soon as your company gets off the ground due to your hard work.

So keep this in mind:

To be successful, you must devote your whole attention to one project at a time, and you must allow yourself enough time to launch and expand your firm. You should not aim for work-life balance while starting a business. Online programs that don't provide one-on-one assistance are inconvenient to use and consume your resources.

The third CFOS Using my previous JV as an example (www.30dayBootCamp.com), you may start a new company while running your current one. You set aside a certain amount of time each day for this project. When you write them down, you don't schedule anything at that time. My initial time commitment for 30dayBootCamp was far more than it is today. When it came to time management, I, on the other hand, was a stickler. My time allocation for this JV has been slashed, but I'm still adhering to a strict schedule.

The third CFOS The following is a bad example: This CFOS had a hand in my JV's failure. I just didn't give this project the attention and resources it needed. Maybe it's because I didn't really believe it.

Say you have the appropriate partner, a shared goal and timeframe with the same number of resources available... What's lacking for this joint venture to be a huge success? However, you will still need the following: an excellent product, a well-defined target market, and excellent networking skills (or the funds to employ an excellent PR!). Is that all that is required? That's a lie. You see, even if you have the greatest partner on the planet, the best product, and a ready-to-buy market, it's not enough. According to venture investors, a concept is only worth one out of ten. They claim that "business planning" is the most important thing. Indeed, it is only when you understand the inner workings of your vision that you will be able to carry it out and achieve success.

As a result, we have Business Planning as our fourth CFOS. When it comes to company strategy, you just can not wing it. Consider hiring a business plan expert if you don't know how. Having taught business plan writing for the last several years, I can confidently state that only well-written business plans get financed. You don't need money? You've got this! You still need to completely grasp your product, your market, your rivals, your execution strategy, your marketing obstacles, etc.

So keep this in mind: