The Power of Partnership and Joint Ventures – Standing on the Shoulders of Giants
In the UK the £2 coin has the inscription on the side “STANDING ON THE SHOULDERS OF GIANTS” taken from a letter by Sir Isaac Newton to Robert Hooke, in which he describes how his work was built on the knowledge of those that had gone before him. “If I have seen further, it is by standing on the shoulders of giants.”
Today your small or start up business can also stand on the shoulder of giants. You can use platforms like WordPress, Youtube, Facebook, Twitter, Linkedin and Blogger to get your message out. You can sell your product on Amazon or Ebay and leverage on the back of their traffic. You can use pay per click adverts on Google, LinkedIn and Bing. You can use templates our outsource tasks using sites like fiverr.com
Sometimes I hear small business owners say “that the big guys have all the advantages” or that they don’t have the money to compete with the giants. We do not need to compete with the giants; we should stand on their shoulders.
The Power of Partnership and Join Ventures
Agents, licensing, and joint ventures are all good ways to expand.
I have recruited many agents, both in the UK and overseas, to sell products for me. Agents are a great way to employ a large sales force with no fixed costs. The agents only make money when they make a sale, meaning you only pay them when they make you a profit. I’m always delighted to write out big commission checks, because it means I’ve earned plenty of money, too.
Virgin and Disney are very good at this. These companies both allow their name to be used on various products, and in turn they receive a cut. You can license or sell the rights to your products overseas.
Sometimes, you don’t want to take a big risk on your own. Or perhaps you have expertise in one area, but are lacking in another. A joint venture can be a good way to mediate a big risk or make up a missing skill set. Obviously, you have to pick your partner carefully.
On a smaller scale, I have done deals with loose competitors, where I have sent out their sales material with our orders and vice versa. A ‘loose competitor’ is a firm which offers something similar or complimentary to what you already do for example you sell wine and another firm sells high quality bottle openers, well you could have an insert for them when you send out your clients wine order, any sales you would get a commission.
At the moment, many Internet companies offer links/ads to other websites, and in return they reciprocate.
Think about how you can work together with other companies, use the mega platforms to build your business and don’t see them as competitors. Extra sales from joint ventures or agency agreements can be very profitable and you only pay on results.
Don’t fight with giant instead stand on his shoulders
Taken from the New York Times Bestseller The Millionaire Dropout, fire your boss, do what you love and reclaim your life by Vince Stanzione. Available worldwide in print, kindle, itunes and audio.