Licensing is one of the best ways to grow your startup. Especially if you've got intellectual property with big market applications and limited resources, that's just what one startup does with its battery technology platform.
Its patented supercell battery pack design reduces production and manufacturing costs and is safer and more energy-efficient. Rather than directly producing and selling its technology, this start-up uses licensing as its launch and growth strategy.
One of its first licensing partners is an Australian-based commercial battery manufacturer that will use the technology to tap into rapidly expanding markets such as utilities, transportation, and manufacturers who need standalone power solutions for remote areas. The company also expanded into the Chinese market by partnering with one of the largest battery manufacturers in the country.
What happens if your startup grows so fast that it can't keep up with demand? Many startups wind up going out of business as they lose frustrated customers because they cannot deliver products.
But smart entrepreneurs turn to licensing as a strategy to scale up their business quickly. One startup did exactly that 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 its production capabilities.
In response, the company pivoted its business strategy and moved to a licensing model to continue growing. Now they license their brand for everything from dog food to toys and 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) by trying to do everything internally, licensing lets you partner with bigger companies with the resources to help continue your hyper-growth.
You focus on developing your IP, while your partners focus on building your business. Revenues continue to grow, customers are happy, and your business expands by creating bigger and better license partnerships to generate more revenue.
With licensing, there's no need to struggle and grow your startup internally, raising capital and taking on the costly overhead. Instead, you reach out to partners who, in turn, license your IP for different products and markets, enabling your startup 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.