| "I like work. It fascinates me. I can
sit and look at it for hours."
Jerome K. Jerome's famous quote may have been intended as a
tongue-in-cheek celebration of laziness -- but there's a gem in there that
Nichepreneurs™ can profit from.
Licensing may not be the first word that comes to mind when
you're considering your career, particularly if you've made your niche in the service
industry. However, creating a license based on your Expert Identity can be a very
lucrative revenue stream. Nichepreneurs™ who create licenses based on their products
and services can increase their profitability without adding to their workload: a great
spot to be in.
Identifying the right time to consider licensing one's
expertise will be different for every Nichepreneurs™. However, there are five common
factors others have used to make the decision:
More Work Than One Office Can Handle
Are you booking appointments six months out? Do new clients
have to wait weeks and weeks before getting to meet you? Have you expanded hours, opened
up on the weekend, and still don't have enough time for everyone?
These are all signs that you've got more work than you can
handle. Mind you, this is a good position to be in -- but clients won't wait forever. If
you can't handle all of your business in a timely fashion, changes have to be made. Rather
than lose these clients to a competitor who can see them quickly, why not funnel them to
one of your licensees? That way you continue to profit from the relationship, without
adding more to an already overloaded schedule.
Geographical Challenges
Word of mouth is a wonderful thing, and there's nothing
better than having your clients tell all of their friends how great you are. However, when
those friends live far beyond where you're willing or able to travel, someone's bound to
be disappointed.
Licensing can be the ideal solution when customers want
your services yet are further afield than you're able to travel. By creating licenses, you
can expand your geographic range, creating a far larger footprint than you'd be able to on
your own.
Be realistic with yourself when considering this criteria.
With relatively cheap airfares and a strong drive to succeed, more than one
Nichepreneur™ has gotten into the habit of living life on the road -- traveling cross
country, often several times a week, for client meetings. If you enjoy this kind of
commute, great! However, if you are starting to resent the sight of your suitcase, it
might be well worth considering if slightly diminished profitability is worth being able
to forgo the weekly flight.
Time Limitations
Nichepreneurs™ or not, there are only 24 hours in a
day. That's all the time you have to run a business, have a family, and perhaps even eke
out a little personal time. You can't work all of the time, unless you're willing to forgo
the other two categories -- and that's not a healthy balance.
Licensing allows you to make the most of the limited amount
of time we all have. If you're having real trouble meeting all of your professional
obligations and keeping a good balance of family and personal time, it may be time to
consider how you can make your practice more efficient. Licensing is one tool that you can
use to capitalize on the finite number of hours in the day.
Desire to Increase Profitability
Every individual has unique financial goals. If you're not
reaching yours, licensing might offer an opportunity to get closer to that target number.
License arrangements vary: some Nichepreneur™ sell
licenses outright, where others enter into ongoing arrangements allowing affiliates to use
the name, logo, and methodologies you've created in return for a monthly fee. You'll want
to consult with your financial advisor about what arrangement best suits your needs and
will help you realize more profit.
Interest from Would Be Licensees
Interest from would-be licensees is a great signal that you
may be ready to license. Sometimes others can see the opportunities that we're blind to:
either because we're too close to our own businesses or just too busy to notice the profit
waiting to be realized.
Be cautious at this point: just because someone has
expressed interest in entering a license agreement with you doesn't mean they're the ideal
person to carry your name. There's a lot of legwork and research that goes into creating a
license relationship: however, the enhanced profitability often makes it all worth it. |
