Despite all the good that can come from joint ventures there are times when they are not the best of ideas for building your business. Learning to identify the good from the bad times for joint ventures is one of the things that will help you be a stellar success within your niche. Keep the advice offered below in mind when considering any joint venture offer and make sure that the timing is right to guarantee success for all parties involved.
So, when is a joint venture not a good idea?
1) When you don't trust your partner(s). Trust is important within a joint venture. If you do not trust those that you are going into the venture with, how can you convince your list to trust them and why would you want to? Do you really want to jeopardize your reputation by associating with those that you aren't too certain you trust? Never introduce a person or product to your list that you aren't fully confident you can endorse with pride. Your list is your security within your niche. Allowing someone to take advantage of the faith they've put in you will haunt you for quite a while and have a negative impact on your business and reputation.
2) When the plan doesn't seem to be complete. There are times when the people are great but the plan—not so much. This doesn't mean that you should never do business with these partners but that maybe this is not the joint venture you'd be interested in doing with them. You should be very selective about whom you embark on this type of effort with. Joint ventures require a great deal of time, care, and attention. If the plan seems off to you, chances are that there really is a flaw that will become a major problem down the road. You have two choices, change the plan so that you are comfortable with it or wait until the next offer comes along with these potential business partners.
3) Sometimes, there is no benefit to you from a joint venture project. There is no reason to invest a great deal of money, time, or effort into a project that isn't going to be beneficial to you. Your time is valuable and would be better spent on projects that will make you money, build your credibility within your market, or build your list. If this joint venture offers none of these benefits to you then it is a good idea to pass until the right offer comes along.
Joint ventures are important business building tools when done correctly. If they are not done correctly, or if things go wrong in the process they can quickly become an albatross that will take a great deal of time and effort to overcome. Rebuilding trust with your customers is difficult in the best of circumstances so it is better to avoid that need all together. Don't risk the value of your customer base for the sake of a few extra pennies and don't spend your valuable time trying to make a venture that isn't meant to be, profitable.