Starting a business involves time, money, sweat, and tears – and once it takes off, you should expect more of the same. As you continue your business growth planning, there are many different growth paths to choose from. Depending on the type of business you own, there are several paths for you to analyze to determine if they can be effective for your business. Here are three paths for you to consider:
1. License your product
Licensing – the process of leasing your product to another company – is a low-cost, low-risk, and affordable way to grow your business. In fact, you can profit from it through upfront payments and royalties whenever companies you license to make sales on your product.
Licensing your product starts with finding a licensing partner that provides a product similar to yours. The next step is to propose a licensing deal to them and collaboratively work out the details. It is advised to consult a lawyer to make sure your intellectual property is protected when signing licensing contracts.
2. For brick and mortar businesses, open up another location
With meticulous research and planning, physical expansion can help brick and mortar businesses reach larger audiences. If your business decides to go this route, it is crucial to determine how fast a new location will take to become profitable. You don’t want to put yourself in a situation where your existing location is funding losses for your new location for an extended period of time. You could put your entire business at risk, so make sure that you do the math before you leap.
3. Offer others an opportunity to franchise your business
Creating a franchise program can help your business enter markets outside of your main location. This is an effective way to market your brand and gain exposure in places you normally would not be able to reach. To franchise your business, the first step is to consult a franchise attorney who can help guide you through the process, where many laws apply.
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more information on business analysis, business planning, and ways to grow your small business profitably, please check out our website www.portalcfo.com. Follow us on Twitter @portalcfo
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Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.