Creating a Joint Venture

Discussion in 'Starting a Lawn Care Business' started by MJK, Jul 8, 2006.

  1. MJK

    MJK LawnSite Senior Member
    Posts: 356

    Thinking about trying to get one. I have know a guy who owns a local Pizza store and i was thinking about asking him about it. Let me know what you think.

    1. This referral system works particularly well with
    restaurants, car washes, oil change businesses, or any other
    service business where transactions occur over a cash

    The idea is to create a business size card that offers some
    type of free or discounted service. You approach the
    business owner and tell them you?d like to give them the
    opportunity to give their customers a free gift. Explain to
    them what your free or discounted offer is and let them know
    that all they need to do is place a stack of cards next to
    their register. As their customers are paying, they will
    notice the card, see that it?s a ?gift for being a valued
    customer?, and take one.

    On the card, put an attention grabbing headline, state the
    offer, and tell the exactly the steps they need to take to
    redeem the offer. Also, if you make this arrangement with
    several businesses, make sure there?s a place to put the
    name of the referring business so you can be sure to thank
    them for the stream of business that will be coming your

    2. Contact local restaurants that provide home delivery such
    as pizza or Chinese restaurants and again, give them the
    opportunity to offer their customers a free gift showing
    their appreciation.

    Just as with the discount cards at the register, you would
    create some type of special offer or incentive that the
    restaurant will offer their customers. This time you simply
    create a flyer that has the offer and all the associated
    details. Every time they make a delivery, they simply
    deliver one of your flyers as well.

    Now, you?ll want to make sure to keep the restaurant well
    stocked with flyers so they have more than enough to pass
    out. Check in periodically to see how they?re doing and
    again, make sure to thank the restaurant owner when someone
    comes your way as a result of their work.

    With this particular system, while you can approach some of
    the ?brand name? businesses, what you?ll find is that it?s
    the smaller, independently owned places that are more open
    to this type of arrangement because of franchise
    restrictions. You never know though so don?t rule them out.

    The beautiful thing about an arrangement like this is that
    you can immediately track how well it?s doing. If things are
    going well, increase the number of partners you work with.
    If it?s not working and you?ve tried a handful of other
    businesses, you can shut it down immediately and move on to
    another form of advertising. It?s not like a yellow pages ad
    where you?re locked in for an extended period and the costs
    are dependent upon how aggressively you want to pursue

    Additionally, with any referral relationship you develop,
    you?ll want to make sure to offer some reciprocal referral
    service for the particular business you?re partnering with.
    It wouldn?t be fair for them to do this for you without
    offering to send business there way as well. You could offer
    to give your customers an appreciation ?gift? that would be
    some type of coupon or discount card from their particular
    business. Again, your customers will be very appreciative
    and their business gets customers they might not have
    otherwise had.

    Also, you?ll find that as you go about trying to find other
    businesses to partner with you?ll only be able to find the
    decision maker about 50% of the time. Of those you do find,
    about 60% won?t even be interested in hearing your proposal
    simply because they don?t understand the nature of joint
    ventures. Of the 40% that do listen to you, only about half
    will take you up on it.

    While these numbers might seem a bit discouraging, it?s not
    as bad as it seems. Once you?re able to establish some of
    these relationships and things are going well, ask the
    business owner to write a testimonial explaining the
    relationship and how beneficial it?s been for them. Then
    take that testimonial and go back to those businesses that
    originally turned you down. After they see the results and
    hear the experiences of the other business owners, trust me,
    they?ll want a piece of the action as well.

    Well, that?s all for today?s lawn care marketing success
    tip. With a little ingenuity and creativity there are lots
    of similar referral systems you could create that will
    generate constant streams of qualified prospects for
    literally pennies.
  2. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    for the right price, i'll make you famous and you wont have to worry about all that other crap.

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