What happens if your company is growing so fast it can’t keep up with demand? For many companies, they wind up going out of business as they lose frustrated customers because they’re unable to deliver products.
But for smart companies, they turn to licensing as a strategy to quickly scale up their business. And that’s exactly what one startup did when their dog food brand caught fire.
They launched just a few years ago, starting with dog food and a mission to feed dogs and keep them alive and out of shelters. The brand became such a huge success that demand completely overwhelmed their production capabilities.
In response, the company pivoted their business strategy and moved to a licensing model to continue growing the business. Now they license out their brand for everything from dog food to toys and even TV shows.
Licensing is not only an effective strategy for making money with your IP, it’s also a great strategy for shifting your business model to manage hyper growth. Rather than adding overhead cost (and risk) trying to do everything internally, licensing lets you partner with bigger companies who have the resources to help continue your hyper growth.
You focus on building your brand while your partners focus on building your business. Revenues continue to grow, customers are happy, and your business expands the brand by creating bigger and better licensing partnerships to generate more revenue.
Many of the largest and most successful consumer brands in the world use the licensing model. One example are the big apparel brands such as Hilfiger, Chanel and others. They shifted to one hundred percent licensing models, expanded their brands globally, and today generate hundreds of millions of dollars in revenue. And you can do the same.
With licensing there’s no need to struggle with building your business internally, trying to raise capital and taking on the costly overhead. Instead you reach out to partners who in turn license your brand for different products and markets, enabling your business to grow with no limitations and unlimited income opportunities.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He’s also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.