For entrepreneurs who want to start a business but do not want to create one from scratch, becoming a licensee would be a great choice. Theoretically speaking, becoming a licensee would mean you can acquire a business model and a system that works. This means pricing, branding and marketing are covered by your licensor. While it’s true that licensing could give you the success you have been wishing for, there are some things you need to remember before you invest in a licensing business.
Here are three factors you need to keep in mind before you become a licensee.
- Does It Have A Proven System?
When you become a licensee, you are actually investing your money in a tested business model. However, if their business model does not have a proven system that works, then you’re only wasting money. Having a system in place should be part of the deal. This system should cover everything from marketing to payroll. You also need to ask if they provide training otherwise, you’ll be left figuring out a way to create a system on your own, which for us, defeats the purpose of being a licensee. The system should provide effective and intuitive management guidance and assistance to all licensees.
- How Do They Treat Their Licensees?
It is important you study how licensors treat their licensees so you will know if it’s the kind of business you want to be in. This is also a way to gauge if it is the right business for you. How can you do this? Do your research and get in contact with the company’s first group of licensees and ask them about their experiences with the business. Keep in mind that once you sign a contract, it would be very expensive to back out, if that is even an option. As early as now, do your research and find out how they treat their licensees.
- Is It A Sound Investment?
Unlike starting your very own business from scratch where all the capital you invest will be channeled towards operations, in licensing, a huge chunk of your initial capital will go straight to your licensor to cover for fees intended for licensing rights, equipment and training to name a few. Before you jump right in, ask your licensor what they will provide in exchange for the licensing fee they require. Ask what’s included and what’s not. It is also important that you ask for a time frame to know when you will be able to earn your expenses back. This will help you determine if it is going to be a sound investment.
If you are currently looking for a business that has the potential to make you successful, HydroKleen is a wonderful opportunity for you.
HydroKleen is an air conditioning cleaning company based in Australia. Our licensees are growing by the minute and are sprouting like mushrooms all over the globe. We started licensing in July 2015 and since then we’ve introduced HydroKleen to over 16 countries and branded ourselves into over 40 countries all over the world in just a short span of time.
We can promise you that we have a successful business model with proven systems in place. We also treat our licensees as family because we believe that their success is our success as well. And more importantly, our business model is built to create success for you so if you’re asking if it’s a sound investment, ask our licensees and they will tell you the truth about us.