Marketing Your Invention

When inventors contact my business about Due Diligence I love to spell out the concept with an easy example. Consider it this way, if your producer is preparing to make the choice to grow, manufacture, and promote a new product which could cost $50,000 to $150,000 to create plus stock expenses, they’d certainly take their time to be certain they are creating a fantastic business decision in moving ahead with the merchandise (i.e.: have they completed their homework about the merchandise ). For this reason, you can sum up” due diligence” because the practice of collecting all of the information is required to generate a fantastic business decision before making the big monetary expenditure. It can usually be assumed that the longer time, energy, and cash (i.e.: “hazard”) a corporation must spend to come up with an innovation, the longer they will assess the possible license. Remember that even when a product seems to be easy and low price, the procedure for creating and manufacturing is seldom straightforward and very low price. Businesses evaluate such standards as customer feedback, retail price factors, unit price to manufacture, competitive landscape, production feasibility, market opportunity, etc.

Inventors frequently wonder if they will need to execute Due Diligence in their own invention. As mentioned, this will be dependent on the choice you’ve chosen for carrying your product to advertise.

Choice 1 – Manufacturing on your own – If you’re thinking about production and marketing the innovation all on your own, then you will have to carry out due diligence. Basically, you become the maker of this solution, and consequently, you should execute the due diligence in your own creation just as other producers would. The problem I have discovered is that lots of inventors that elect to fabricate their own creations do little, if any marketing due diligence, which can be a significant mistake.

Choice 2 – Accreditation for Royalties – in case you’re thinking about licensing for exemptions, then I think you can diminish your due diligence efforts, because before any firm licensing your invention, then they can execute their own due diligence. If you’re working with a business like Invention Home, then the prices to advertise your invention to businesses can be minimum – so it might cost you to really execute the due diligence than it would to simply market the innovation to firms (which, is finally your very best type of due diligence anyhow ). Bear in mind that ought to have taken the opportunity to perform your basic market study and a patent hunt earlier in the procedure to make sure that your merchandise is well worth pursuing in the first place (i.e.: that the item isn’t already available on the market and there’s a need).

Allow me to summarize. If you’re thinking about investing a great deal of money in your creation, then you need to always examine the chance initially to make sure it’s well worth pursuing; nonetheless, if you’re able to actively promote your invention to firms with nominal price, you can rest assured that an enthusiastic company will perform their own due diligence (not rely upon yours). Note: it’s always valuable to own marketing due diligence information available because you talk about your innovation opportunity with potential employers nonetheless, it isn’t always easy to get this information so that you have to balance the hard work and cost of collecting the information together with the true requirement of getting it.

Additionally, I will offer you some due diligence tips. As discussed, the notion of marketing due diligence would be to collect as much information as you can to generate a well-informed decision on investment in any innovation. In an ideal world, we’d have all the appropriate information on revenue projections, retail prices, marketing expenses, manufacturing installation and unit costs, competitive analysis, market need, etc… But this information isn’t always easy to find.

If you’re not in a position to cover a professional company to do your marketing test, it is likely to execute the research on your own nevertheless, you want to see that research ought to be translated and employed for decision-making and onto its own, and it does not have any value. It’s what you are doing with all the information that matters. Notice: I would advise that you DO NOT PURCHASE “market study” from an Invention Promotion business. Often marketed as a”first measure” (they will usually approach you with a costly”marketing” package), the information is mainly useless since it isn’t specific research in your own invention. Instead, it’s off-the-shelf”canned” industry figures, which won’t automatically help you make an educated choice.