ALTERNATIVES FOR BUSINESS EXPANSION

3. JOINT VENTURE
 A joint venture partnership is
characterized not by fees but by sharing
both equity and profits.
 So, for example, your joint venture
partner might put up 70 percent of the
money and work at a salary that was
below market for one year. You'd put up
30 percent of the capital, sign personally
on a bank note, and provide your
intellectual property. Based on your
negotiations, you might end up in a
60/40 split of the ownership of the
company. Your 40 percent would entitle
you to 40 percent of any profits that are
distributed -- but only if profits are
distributed.

4. COMPANY OWNED OUTLETS
 Company owned outlets are stores or offices
established by certain franchisors. It is owned
by a franchisor instead of a franchisee.
 A company owned outlet are identical to the
franchised outlets in appearance.
 The most obvious expansion method for many
companies is the development of additional
company-owned outlets.
 This strategy offers several advantages over
franchising.
 Perhaps most important, company-owned
growth allows owners to keep 100 percent of
each unit’s profits rather than sharing those
profits with franchisees.

5. DEALERSHIPS AND DISTRIBUTORSHIPS
 This format involves the provision of
products to a third party at a bona fide
wholesale price for resale, a tried-and-
true means of establishing a distribution
channel. Of course, this method is only
appropriate for manufacturers and
wholesalers.
 But be careful: Selling equipment,
displays, and other items that aren't
intended for resale-- even if not sold at
a profit -- will trigger the fee element of
the definition and potentially create
legal problems.

6. FRANCHISING
 Franchising is based on a marketing concept which
can be adopted by an organization as a strategy for
business expansion.
 Where implemented, a franchisor licenses its know-
how, procedures, intellectual property, use of its
business model, brand, and rights to sell its
branded products and services to a franchisee

7. CO-OPERATIVE OUTLETS
 A consumers' co-operative is an
enterprise owned by consumers and
managed democratically which aims at
fulfilling the needs and aspirations of their
members. They operate within the
market system, independently of the
state, as a form of mutual aid, oriented
toward service rather than pecuniary
profit.
 Consumers' cooperatives often take the
form of retail outlets owned and operated
by their consumers, such as food co-ops.
However, there are many types of
consumers' cooperatives, operating in
areas such as health care, insurance,
housing, utilities and personal finance