When large brands in its sector were battening down the hatches in a tough economic climate, Skandinavisk Founder and CEO Shaun Russell knew this was the wrong tactic for his SME. He needed a different approach to continue the growth of his successful business.
Shaun’s strategy was to maintain demand in existing mature markets and target growth through expansion into prime export territories. While advising him on other development matters, he revealed one such opportunity was on the horizon.
Industry:
Retail, International Business
Service:
Business Coaching, Joint Ventures, Strategic Growth
How do you get it right without experience?
The opportunity came with two challenges. He needed to end an existing, incompatible distributor arrangement to enable a joint venture (JV) agreement with a known partner in the same territory.
Significantly, neither side had any experience in setting up such agreements. Get it right, and the partnership will thrive; get it wrong, and it can easily fall over at the first hurdle.
Success in this major market was a vital component of the business growth strategy. So, Shaun was delighted to learn of my JV expertise developed by setting up many such agreements worldwide.
Customary thinking may not be the best approach
Conventional wisdom suggests covering all aspects in a comprehensive legal document to protect the business. Many JVs are formed this way.
I shared a different approach with the Skandinavisk directors. It places developing the relationship ahead of all else. It may appear counterintuitive, yet it works when combined with my knowledge of local business cultures, as Shaun and his new JV partner soon discovered.
Under my guidance, Skandinavisk used a memorandum of understanding (MOU) to lead the process. This enabled both parties to freely discuss terms, ensure two-way mutual gains, and cement a strong relationship. The JV partner was involved and motivated at each stage and valued the humanity of the process.
With most issues covered within the friendly MOU approach, both sides’ lawyers could approve and complete a legal agreement in no time at all.
Collaboration delivers a partnership that works
Shaun expected the setting up of his company’s first JV agreement to take considerable time. Instead, it took less than four months by adopting my collaborative approach.
That’s the shortest time of any major growth initiative in the history of the business.
Importantly, Skandinavisk formed a much stronger JV partner relationship than anyone anticipated. This is evidenced by the robust sales delivered from Day One.
Shaun and his team also have a proven methodology to create further successful JVs in other countries to facilitate the planned scaling of the business.
If you would like to learn more about the coaching approach that delivered this successful outcome, check out my blog post about the 'OODA Loop’.
Having your expertise in my corner has transformed our business trajectory for future growth.
"Advice to secure a significant joint venture was not the reason I contacted you, yet, with your mentoring, I made it happen within 3–4 months... it immediately generated new business through this crucial profit centre."
Shaun Russell, Founder