That old adage rings true in business: sometimes, two heads are better than one.
As we grow ENVIRO Agscience into one of the premier construction and landscape firms in the country, we’ve learned that partnering with other companies helps advance our growth strategy tremendously. Joint Ventures (JV) and/or Teaming Agreements– with similar sized firms or larger ones – maximize the best that each company has to offer and increase the benefit for the client. It’s a win-win-win for all companies involved.
ENVIRO uses partners to strengthen long-term relationships and to collaborate on short-term projects. Partnering helps us grow our business, increase productivity and generate profit. They also help us gain entry into new markets, increase capacity, share financial risks, provide access to greater resources; including specialized staff, technology and project financing/bonding capacity. We have used joint venture, teaming agreement and strategic partnerships on most construction jobs over $10MM and currently partner with three JVs.
When ENVIRO was in the SBA 8(a) program, we found joint ventures to be a good tool for learning the processes, procedures and policies that help fuel the growth of our organization. These teaching opportunities provided us with significant on-the-job training and priceless preparation for future expansion.
As with any relationship, finding a good partner is critical. ENVIRO uses a team approach to identify opportunities and partners. Our marketing director, Ly Eldridge, researches opportunities that fit our corporate profile, and she never seems to sleep. Lonnie Leslie, our business development director, networks at events across the country to connect with corporations that may have an interest in working with us. Director of construction, LeRoy Courseault, recently joined our effort to ensure that opportunities are an ideal fit. Our team weighs the risks and benefits of each opportunity before presenting them to leadership. Thank goodness for a team that makes decision-making a lot easier.
A good opportunity begins with a good partner, and it’s best to pick a partner you can trust. Your ideal partner should share similar business philosophies and corporate cultures. You’ll work closely together, so like-mindedness helps to minimize conflict. Communication is key. Meet regularly and remain transparent with open, honest discussion about the direction you want to take.
(Remember that sometimes even a successful company on paper just won’t be a good fit for your company’s goals and objectives. Don’t force it.)
Once you’ve identified your ideal partner and established open lines of communication, you should reap the rewards of a solid business relationship. The opportunities can be endless, so make the most of them.
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