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Question added to topic Starting a BusinessSeptember 11, 2007

How do I decide whether I should license my product to someone else or manufacture it myself?

I live in West Palm Beach and I have a patent that I am developing. I have a proof of concept prototype but now I need help in deciding whether I should license the product to someone else or manufacture it myself. Both have pros and cons. The patent is pending and I have filed a PCT. I am trying to write a business plan and calculate the cost of a start-up and need some guidence. It is a pet product and contains plastic and some electronics. I think more women will buy it.
<P>Lucy</P>
<P>Great question, it's almost like asking how long a piece of string is.  Running a complete business on a single product line is always very difficult to get to a level of profitability.</P>
<P>That said, if you have a large profit margin and a massive supplier system (like a Walmart type buyer), the decision to go it alone is a very valid one.  From what you mention about the product I am not sure you are trying to sell millions of them.  If that's the case, I would generally look for a company with an existing distribution system to either sell it to or partner with.</P>
<P>All the Best, Brad Sugars</P>

Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.

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