Licensors & Owners of IP
Licensing your business model or other intellectual properties is an exciting way to grow your business and bottom line. It is often confused with franchising (which can be expensive and challenging to manage), or is assumed to only be used in the technology or photography worlds.
Licensing, simply put, is allowing someone else to use your business systems for a fee. They aren’t required to use your business name, they don’t have to buy products from places you determine, and they don’t have to fly your colors on their flagpole. They pay a fee to use the business systems that you have developed with your own money, time, labor, and experiences.
Developing a Licensable Product
The benefits to licensing are great. For those new to licensing, it might feel like you are standing at the foot of Mount Everest thinking about climbing the summit and it feels overwhelming. This is how many business professionals feel when thinking about starting a company. They want to own their own business, but don’t know how to tackle all the components to make it work well. When you license your business model, you allow them to use your hard work, experience, and time invested to reach the summit faster than they could possibly do on their own. They become ‘caretakers’ moving your business model forward.
Major benefits for the licensor include:
Expand your business model geographically without all the added expense and management.
Residual revenue stream.
Work with great business owners (your licensees).
The company isn’t dependent solely on you to exist. It has other ‘caretakers’ moving the model forward.
Markets can be served that wouldn’t otherwise be because of your time limitations.
You are supporting the interests of other business owners who want to own a business, but might not
have the concept.
Having a well-built licensable model is key to short and long term success. We have experience in this since 2007 and have licensed dozens of business models. If you think you'd like to license your business model and have had others ask you if they can 'have access to your model', let's talk and see if we can support and expedite the process for you.
Having an experienced business coach at this stage is a 'game changer'.
Promoting a License
Building a license is one thing; selling it is another. Like any other business, having a licensable model that you are making available to licensees (your customers) requires a business development system to attract, engage, educate, and close prospective licensees in your model. You want them to be a fit for you and your model to be a fit for what they are looking to achieve. Bringing in the right licensees makes for a mutually beneficial relationship; allowing the wrong ones to come in creates a whole bunch of headaches that could otherwise be avoided. You want to have a system that assesses the viability of the prospective licensee once you find them to make sure they are a fit for what you are building. We can work with you in developing all parts of this.
A coach is great at this stage, but the engagement is short-term.
Managing a License
Ongoing management of a license is where you determine which areas of your licensed content are well positioned and which need to be adjusted to fit perfectly for your licensees. You shouldn't customize for any one licensee, but instead have a master model that all licensees can use (with success). Having a dedicated coach work with you in ensuring your license is running smoothly, your licensees are using and protecting your IP, and you continue to develop and evolve your model, is key. Having a co-pilot as you get your model up to cruising altitude isn't a necessity, but can sure smooth out the bumps of growth.
A coach is helpful at this stage but not necessary unless model is growing super quick.