The Preparatory Steps For a Joint Venture

Are you planning to venture into a foreign country but are short of adequate funds?

One of the tried and tested ways of venturing into new, unfamiliar markets is through joint venture (JV) with a local business partner. Having marketable products, technical know-how and the finance are not enough for getting a toehold in a new market. The knowledge about the characteristics of the particular markets and contacts and networking with local dealers and retailers are equally essential in making your presence felt.

A joint venture with a local business partner gives you the added edge of penetrating new markets. The partner is likely to bring to the table on-the-ground knowledge about your customers, and valuable insights about pricing, distribution, packaging and ROI apart from a well-established distribution and marketing network.

Since a huge amount money and risk is involved in a joint venture, it requires a right set of effective planning and execution to ensure the success of joint venture. Apart from huge investment and capital, a successful joint venture stands on honesty, integrity, mutual understanding and communication between the partners. 

 

Dow Corning, Sony Ericsson, MillerCoors, Norampac, Penske Truck Leasing, and Owens-Corning are some of the successful joint ventures that can be referred as the case studies.

The Groundwork for the Joint Venture 

Before entering into a joint venture you should be very clear about your objectives and complete business model. You should have a clear picture about the investment amount, finance options and debts. Be very sure about your target audience and products you are offering through a joint venture. 

Collect complete knowledge about the foreign policies of that country and way they can be beneficial for you. Compile a detailed list of your competitors and discuss strategies with your partner to counter them.

You should also have the complete details of offered site, including output projections, transport and warehousing, testing and quality control, by-products and waste; supply, utility, and transport requirements along with estimated technology transfer costs. (source: Wikipedia)

Seek Services of a CEO Peer Groups

You can valuable suggestions about entering into a joint venture at a CEO peer group. At a CEO club, you get to meet the business leaders from non-competitive business domains. You can benefit from their experiences and knowledge in a CEO conference.

We have discussed the preparatory steps for a joint venture in this blog. We will discuss the other aspects of a joint venture in our next blog.

Strike the Right Cord with a Perfect Business Idea!

“You don’t learn to walk by following rules. You learn by doing, and by falling over.”

~ Richard Branson

If you dream of owning a business enterprise and possess the requisite expertise, adequate capital, and above all the courage to enter and excel in the world of your choice, then the sky is the limit for you!

Do not forget, starting a business is not a cake walk and requires extensive research, planning, expertise, and hard work especially if you are starting it from the scratch without any Godfather or financial cushion.

Keep the following factors firmly in mind before you take steps for launching your own business:

Think something that matches your expertise

All businesses sprout from an Idea. It is very important for you to choose your business idea from your set of expertise and knowledge. If you are launching a product or offering a service, you should have the complete knowledge of all aspects attached with what you are going to sell. 

Even if you opt for an all new business idea, something you do not understand much, study it in detail before finally making it happen.

Understand the market demand 

You cannot sell a product or service which has lost its market value. Also, be careful not to jump into a market which is dominated by some big players especially if your pockets are not that deep to challenge the giants. Pick a business idea that will allow you to carve out a niche, and about which you have a good, first-hand knowledge.

Identify your target clients or customers 

You should have a good knowledge about your target audience. Design your product or services keeping in mind a particular category of customers and then serve them with a USP. 

For example if you are opening a restaurant, you can focus on continental food to make it as your main USP. You can gradually come on to other cuisines once you grab the attention of food lovers.

   

Be very sure about your capital or investment cap

Decide on the kind of investment your business idea would require and how much you can afford to fork out. Once you know the kind of investment the idea entails, you can plan out your finance – i.e. raising funds, distributing capital, managing ROI and so on.

Share your idea 

Sharing your idea with like-minded and experienced professionals at CEO Clubs will help you get a reality check on how workable or feasible your idea is. If you are a member of a CEO Club or CEO association, you can thrash out your idea with other CEO peers who have had entrepreneurial experience from which you can gain valuable insights. The honest, no-strings attached opinions and feedback you get at a CEO Coaching not only helps you mature as a businessman but also boosts your confidence and widens your vision.            

Tips to Motivate Employees & Appreciate them

Appreciation is the biggest motivator for everyone. Everyone likes to be appreciated especially when they know they are working hard and contributing to the company's growth. Unfortunately most employers fail to understand the importance of appreciation.

Employees often feel that they are not being appreciated or their efforts are not being recognized. If such feelings persist, you stand to lose even your most loyal employees. Appreciating your employee doesn't harm anyone. Rather it works in the company's benefit. Check out the ways in which you can acknowledge your employees:

Applaud employees' efforts

Praise your employees whenever a job is done well. Acknowledge them for their hard work and contributions. Once in a while, send them a thank you note saying things like, “Well done. Great work.” All these little gestures indicate that their work is valued.

Make it a point, to praise an employee in front of other colleagues. If an employee has done something good, sharing the appreciation in front of others will not only motivate that particular employee, it will also encourage others to do better.

Even if the ideas given by the employees fail, appreciate them for the efforts they have put into creating those ideas or giving them shape. Keep encouraging your employees so that they keep coming up with new ideas. This will instill motivation and positive thinking in them. After all, winning is not important. Making the effort is.

Little rewards

If a certain project is delivered within deadline or if some department has excelled in a certain work, take them out for a lunch or a movie once in a while. Or gift them tickets to a concert. It is a great way to unwind and boost team work and bonding as well.

Be friendly

As a top person in your organization, you need to look beyond work and deadlines all the time. Ask your employees about their hobbies, families and how they spend weekend. It just shows that you value and care for your employees.

Bonus

Give your employees a bonus or an increment every once in a while. It indicates that you appreciate the excellent work done. If you notice a terrific improvement or a superb performance by an employee, you can offer them a raise or a give them a promotion.

Employees of the month recognition

Every month, you can choose an “Employees of the month”. You can dedicate a space in the office where you can place the picture of the employee of the month along with details about what accomplishment the concerned employee made to earn that reward.

To ensure harmony in your organization and to keep employees motivated, you can also consult experienced CEOs in CEO clubs or CEO associations to learn and understand how other entrepreneurs face and resolve such challenges and keep the morale of the employees high. 

Tips To Build Strong Networking For Small Businesses

One of the most important things for small businesses is to develop a good network which will help their business to grow and flourish. Networking with the right people can get you good business whereas with the wrong people it is a complete waste of time. Here are some of the effective ways to build a strong networking with the right kind of people:

Do social networking

Internet is one of the most effective and inexpensive ways to build network. Build a profile on LinkedIn, Facebook and Google Plus to build connections with the right people and groups that are relevant to your business. Participate in the Q&A area or discussion forums, give your suggestions and post your queries. You can also create separate Facebook pages for your company's profile, its products and services. You can also join Twitter for advertising about your products.

Attend conferences

You can attend conferences or seminars which give you opportunities to make valuable business connections. You can also participate in a trade show and exhibit your products.

Be tactful

Steer clear of self promotion in the first meeting. It sends a wrong impression when you start a conversation with a business card. Rather talk about world-affairs or economy in general but do not promote your business. And end your conversation with an open-ended question which will prompt the person to provide you information about their business. And once you hold a healthy conversation, then hand over your business card which will not only give the recipient important contact information about your business but also reinforce your brand in the potential customer's mind.

It is essential to establish network with as many people as you can but it is equally important to build connections with the right people. So figure out who your potential customers are and focus on them. You can also join a or CEO Association in Atlanta

or anywhere else where you get to meet experienced entrepreneurs with whom you can share your concerns without any hesitation and get expert advice.

But keep in mind that a  CEO corporate association is not a place to build network. Rather it provides you a platform to conveniently share your ideas in a secure environment where what you discuss is never leaked out of the room and get practical tips to build a strong network from the experts themselves.