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Taking License

Profit from your great idea by setting up a licensing agreement.

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This story appears in the October 1998 issue of Business Start-Ups magazine.

Got a great idea??? but don't have the time, energy, experience or resources to manufacture and market it? Don't give up. Another option is to find a manufacturer who will license your idea. This way, you get a royalty without having to do any additional work to promote, manufacture or sell the product. Licensing can be ideal if you're the type who prefers to keep inventing rather than actually run a company.

I'm often asked "How do manufacturers decide what products to license?" There's no one answer to this question; manufacturers license products for a variety of reasons. However, John Lisle, president of Clarinda, Iowa-based Lisle Corp., a manufacturer of specialty automotive products, offers some insights.

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