Starting at zero, my partners and I created a new software product, rapidly built a business around it, and sold that business for $6.2 million in just 17 months.
What was our secret weapon? Leveraging other people’s assets.
From day one, we agreed that we would use as many established channels as possible to increase our speed to market. Here are three of the most important ways we accomplished this that you can use to exponentially increase your own sales and profits.
- Leverage Other People’s Customers. The most difficult aspect of any business is building a loyal customer list. It can often take years to establish a strong list of loyal, repeat customers. We didnt try to do this on our own. Instead, we identified the largest providers to customers in our industry and struck deals with them to offer our software for 50% of the profits. This generous proportion of profit sharing motivated our partners to become strong advocates of our product. For no out-of-pocket expense, the highly trained sales forces of our alliance partners went to work selling our software to their customers.
- Leverage Other People’s Employees. We hired a high level employee from the largest company in our industry as our Vice President of Business Development. He exceptional academic and professional credentials, her deep list of company contacts, and her exceptional presentation skills coupled with her industry reputation immediately positioned us in the minds of prospective customers as a company that should be taken seriously. Before, when one of our sales people called a prospect, there was a 50/50 chance their call would be taken. But when she called a prospect, it was almost guaranteed that her call would be taken every time.
- Leverage Other People’s Reputations. Here’s an example of leveraging an asset that most people might not consider. Because our product was unique, we took full advantage of all the trademark, copyright and patent protection we could secure.
But our CEO had the foresight to take things even further. He had our intellectual property rights reviewed and certified by one of the top intellectually property firms in the country.
What was the benefit of this additional step? The firm we used was recognized as one of the top three patent litigators in the country. By using this well known patent litigation firm to certify our rights, we positioned our company to avoid having our rights infringed. It also signaled any potential acquirers of our business that they didnt have to worry about unfair use of patent claims coming back to haunt them.
There are dozens of ways you can leverage Other People’s Assets to increase your sales and profits, and the value of your company. All it takes is a little time and effort to identify those assets that are specific to your business and then use them to gain a powerful advantage your competitors cant ever hope to match.
Bob Serling has helped dozens of companies create new products that fulfill their customers precise needs and position their products for greater profits. Bob holds a patent on an advanced testing software suite that he and his partners developed and sold for millions in just 17 months, and has patents pending on a consumer product and a business service.
A Powerful Strategy for Business Growth
In today’s competitive business landscape, finding innovative ways to increase sales, boost profits, and enhance company value is crucial for long-term success. One often overlooked strategy that can provide a significant advantage is leveraging other people’s assets (OPA). This approach allows businesses to expand their capabilities, reach new markets, and increase efficiency without the substantial upfront investments typically associated with traditional growth methods.
The concept of leveraging OPA is based on the principle that you don’t need to own every asset required to grow your business. Instead, by identifying and utilizing assets that already exist in your business ecosystem, you can achieve remarkable growth while minimizing risk and capital expenditure. This strategy can be particularly powerful because it allows you to tap into resources that your competitors may not have considered, giving you a unique edge in the market.
Let’s explore some of the many ways you can leverage other people’s assets to drive your business forward:
Strategic Partnerships
One of the most effective ways to leverage OPA is through strategic partnerships. By aligning with companies that have complementary assets or capabilities, you can expand your offering without investing in new infrastructure or expertise. For example:
- A small software company might partner with a larger tech firm to gain access to their distribution channels and customer base.
- A local restaurant could team up with a popular food delivery service to expand their reach without investing in their own delivery fleet.
- A boutique marketing agency could collaborate with a web development firm to offer comprehensive digital solutions to clients.
These partnerships allow each company to benefit from the other’s strengths, creating a win-win situation that drives growth for both parties.
Affiliate Marketing
Affiliate marketing is a prime example of leveraging other people’s assets – in this case, their audience and influence. By creating an affiliate program, you can tap into the customer bases of bloggers, influencers, and other businesses in your niche. This allows you to reach new potential customers without the high costs associated with traditional advertising.
To implement an effective affiliate program:
- Offer attractive commission rates to incentivize partners
- Provide affiliates with high-quality marketing materials
- Track referrals accurately and pay commissions promptly
- Nurture relationships with top-performing affiliates
Dropshipping
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This model allows you to leverage the inventory and fulfillment capabilities of suppliers, eliminating the need for upfront inventory investments and warehouse space.
Benefits of dropshipping include:
- Low startup costs
- Reduced overhead
- Ability to offer a wide range of products
- Flexibility to test new product lines with minimal risk
White Labeling
White labeling involves selling products or services produced by one company under another company’s brand. This strategy allows you to expand your product line by leveraging the production capabilities and expertise of other businesses. For instance:
- A skincare brand might white label products from a established manufacturer to quickly expand their range.
- A digital marketing agency could white label SEO tools to offer additional services to clients.
White labeling can help you meet customer demands more quickly and cost-effectively than developing new products in-house.
Licensing
Licensing agreements allow you to leverage the intellectual property of other companies or individuals. This can include patents, trademarks, copyrights, or proprietary technologies. By licensing these assets, you can:
- Bring innovative products to market faster
- Enhance your brand’s credibility by associating with established names
- Access new markets or customer segments
For example, a toy company might license popular cartoon characters to create themed product lines, leveraging the brand recognition and fan base of the characters.
Crowdsourcing
Crowdsourcing involves leveraging the collective intelligence, skills, or resources of a large group of people, typically via the internet. This can be an incredibly powerful way to access diverse talents and ideas without the overhead of a large in-house team. Applications of crowdsourcing include:
- Product development (e.g., soliciting design ideas from customers)
- Content creation (e.g., user-generated reviews or videos)
- Problem-solving (e.g., offering rewards for solutions to technical challenges)
- Funding (e.g., crowdfunding platforms for capital raising)
- Shared Economy Platforms
The rise of shared economy platforms has created new opportunities for businesses to leverage underutilized assets. For example:
- A company could use Airbnb to rent out unused office space
- Businesses can leverage platforms like Uber or Lyft for corporate transportation needs
- Freelance platforms like Upwork allow companies to access specialized skills on-demand
These platforms allow businesses to access resources as needed without the long-term commitments of ownership or employment.
Data Partnerships
In the digital age, data is one of the most valuable assets a company can have. Forming data partnerships allows you to leverage insights from other companies to enhance your own offerings or decision-making processes. For instance:
- A retailer might partner with a weather data provider to optimize inventory based on forecasted conditions
- A financial services company could collaborate with a social media platform to gain insights into consumer behavior
When pursuing data partnerships, it’s crucial to ensure compliance with data protection regulations and maintain customer trust.
Customer Co-creation
Involving customers in the product development or improvement process is a way of leveraging their insights and creativity. This can lead to products that better meet market needs and create a sense of ownership among customers. Approaches to customer co-creation include:
- Beta testing programs
- Idea submission platforms
- Customer advisory boards
- Customization options for products or services
Leveraging Influencers and Thought Leaders
Partnering with influencers or thought leaders in your industry allows you to tap into their credibility and reach. This can be particularly effective for building brand awareness and trust. Strategies might include:
- Sponsored content collaborations
- Joint webinars or events
- Expert quotes or endorsements for marketing materials
- Co-authored whitepapers or research reports
Educational Institutions
Forming partnerships with universities or vocational schools can provide access to cutting-edge research, emerging talent, and specialized facilities. This can be especially valuable for companies in technology or research-intensive fields. Possibilities include:
- Sponsoring research projects
- Offering internship programs
- Collaborating on curriculum development
- Utilizing university labs or equipment for testing and development
Government Resources
Many governments offer resources and programs to support business growth. These can include:
- Grants or subsidies for specific industries or activities
- Export assistance programs
- Business incubators or accelerators
- Research and development tax credits
By leveraging these resources, businesses can access funding, expertise, and support that can fuel growth and innovation.
Implementing an OPA Strategy
To effectively leverage other people’s assets, follow these steps:
- Assess Your Needs: Identify areas where your business could benefit from additional resources or capabilities.
- Map Your Ecosystem: Look beyond your immediate industry to identify potential partners or resources that could add value to your business.
- Evaluate Potential Partners: Consider factors such as alignment of values, complementary strengths, and potential synergies.
- Develop Clear Agreements: Ensure all parties understand their roles, responsibilities, and the terms of the collaboration.
- Start Small and Scale: Begin with pilot projects to test the partnership before committing to larger initiatives.
- Monitor and Optimize: Regularly assess the performance of your OPA strategies and be prepared to adjust as needed.
- Maintain Ethical Standards: Ensure all collaborations are transparent, fair, and compliant with relevant regulations.
Leveraging other people’s assets offers a powerful way to accelerate business growth, increase efficiency, and gain a competitive edge. By thinking creatively about the resources available in your business ecosystem, you can unlock new opportunities for innovation and expansion without the need for significant capital investment.
The key to success lies in identifying the right assets to leverage and forming mutually beneficial partnerships. Whether it’s through strategic alliances, technology licensing, or tapping into the shared economy, the possibilities are vast. By mastering the art of leveraging OPA, you can position your business for sustainable growth and success in an increasingly competitive marketplace.
Remember, the most successful businesses are often those that can see beyond their own resources and creatively tap into the assets that surround them. With a little time and effort, you can identify and leverage assets specific to your business, gaining a powerful advantage that your competitors will find hard to match.
