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The business model, i now turn to this very important point.

There are two main methods for achieving rapid buiness growth, to produce a broadly distributed company.

The first is the' freeco' system. Start up a business, own the premisses you are in, then mortgage the premises. Then rent back the premises from the mortgagee. Cash flow greater than debt coverage = happiness.

The cash bundle is then used to buy /build another business outlet. When the new business is generating sufficient cash flow, The process is repeated. This system is welll tried and tested, and is generally favoured by the supermarkets and home retail companies.

The second system for rapid, broad based growth is the franchising system . Where a proven business model, that has demonstrated 'Repeatability', is offered as a complete package to people who wish to escape the employee/security trap in life.
This model is particularly attractive because of the very low failure rate, Plus the all important cash flow is more predictable.

I now come to licensing, the process is very similar to franchising. It is attractive to the person who wants passionately to work for himself, but dosn't want to flip burgers for 16 hours per day in order to get rich., but wants a business that can be grown organically, with a stream of 'new bolt on products' as and when required.

I am preparing a separate article for the discussion forum, on the correct value of licensing, and its positioning in business.