Changing your business model can be one of your toughest business decisions. But failing to adapt your business when market conditions change can cost you more than lost revenues.

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A mobile app development company was on the brink of bankruptcy. They developed a mobile app that provided estimates and auto shop contacts to users who sent in their car wreck photos. But they had a big problem. Consumers weren’t interested. Since drivers may only have a wreck once every 7 to 10 years, there was no interest by consumers to buy the app.

The company started drastically cutting costs to save the business. Because consumers weren’t buying, they had to find someone who would. In a desperate act, they went to insurance industry trade-shows and met with auto insurance companies. They quickly learned the auto insurance industry was way behind in technology.

The spotted an opportunity for the business and that’s when the licensing mindset kicked in. If the company could license its technology to insurance companies, and let them offer it to the tens of millions of insurance customers, they’d have a revenue generating business.

The company quickly revamped its business model and turned it into a licensing model. They changed the company name and licensed the technology directly to insurance companies. The Insurance carriers got rights to brand it as their own app and offer it to customers who wanted to get inspections done quickly, without having to wait for an agent on site.

In less than two years, the company completely turned around its business, and went on to raise $10 million. Its business grew over 400%, and the app is used by 14 of the top US auto insurance companies

Don’t get stuck in the tangible “we’ve always done it this way” box. Profit is now a game of out thinking your competitor and less about out producing him. The old business model designs a product and sells it to create income. The new business model uses intellectual property (IP) to generate revenue and build a higher business value than the traditional “product only” business.

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Mr. Brenner has over 30 years IP management and licensing experience with various industries including consumer products, food, entertainment, software,health technology, medical devices and digital media. He has led international licensing programs as both licensee and licensor, and through consulting projects focused on strategy and management, outbound / inbound licensing initiatives, and IP audits and due diligence.. He has developed and managed deals with Fortune 1000 companies including Universal Studios, Fox Interactive, Sony Pictures, Dow, Cargill, SmithKline Glaxo, Ranir, Coca Cola, Kellogg’s, Hasbro, Mattel, and others. He is a public speaker and published writer, and has taught classes at the university level. His speaking events have included UC Irvine, Tritech/SBDC, Irvine Chamber, Fast Start Studios, ICFO Investors Conference, San Diego Investment Conference, Westlaw Legal Center (NYC), National Speakers Association, and the Hong Kong FilmArt Expo. He has written several articles on licensing intellectual property which have appeared in the Licensing Journal, Intellectual Property Magazine, and License India.

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