Franchising requires the sale of your product or service and also the systems and training practices to create that product or service work. Franchising allows you to expand your business at minimal cost of capital because it’s usually the franchisee who bears most of the costs. However, franchising only works if you’ve got a well-developed business system with a proven documentation. You’ll also got to provide ongoing support and training to your franchisees if you wish them to flourish. The commitment is commonly greater than business people initially realize.
A joint venture with a corporation in your targeted overseas market may be a decent way to overcome trade barriers. A joint venture involves you both committing funds and resources to developing a marketplace for your products or services. However, experience shows that it’s very difficult to determine a joint venture that benefits both parties equally.
Licensing your products or services is another possibility worth investigating, alongside royalties (the sale of intellectual property reciprocally for an agreed amount for every sale). In both cases, you’ll got to get good advice from lawyers or consultants who have experience in these types of transactions.
Strategic alliances offer another possibility. they’re just like joint ventures, but are entered on a less formal basis for a shorter period of your time, and sometimes target a distinct segment a part of the market.