This week let’s look at strategies for presenting your product ideas to prospects, as well as at the financial aspects of reaching a production or distribution agreement with a company.
So far I’ve told you to hire lawyers, researchers, testers, model- builders, accountants, and an assistant. Am I assuming that you already have the financial wherewithal to do this?
Of course not. Rare indeed is the person who can fund his or her own product development out-of-pocket. But there are sources of funding available to potential product developers who show that they are talented, resourceful, and above all, serious about what they do.
Most of us don’t work for major corporations that habitually fund speculative inventions. And most banks won’t lend big sums of money on spec to budding inventors. Therefore, you need to think as creatively about your funding as you do about your invention itself.
Do your research. Some large companies have foundations that make grants to inventors. There are special-interest grant-making organizations, private venture capitalists, and professional associations.
There’s also the U.S. government. Your local library will have directories of the foundations and government grants.
Also, look for companies that are themselves actively seeking new products. A good place to find them is www.investorsdigest.com. This site also offers a venue for exposing your invention to potential buyers/licensers.
The invention convention site (www.inventionconvention.com) offers an online network for tech companies, investors/licensers, and inventors to meet.
Be creative with your resources. If you’ve got a supportive relative with a little extra money in the bank, ask for help. Your presentation should be as convincing to them as it would be to a major corporation.
When you meet with your prospective buyer or licenser, you’ll need to present your product in an engaging, enticing and thorough way.
Following is a checklist of the things you should be ready to explain or demonstrate in your presentation:
- A patent (or patent pending). It’s highly unlikely that anyone will talk to you if you don’t have this.
- A good model. In the third phase of developing your invention, you created models of your prototypes. Have a to-scale, functioning (if at all possible) model of the final product.
- Drawings and posters. Blueprints, draft designs and computer printouts will convince your buyer that you’ve gone through the necessary design and engineering steps.
- Focus group/research results. Have your research compiled and presentable in a coherent, concise printout.
- Market overview. Go into the meeting with a demonstrable understanding of the market your product falls into: top selling products, the buyer/manufacturer’s competitors, new developments and technology, etc. This will indicate that you know your stuff.
- Costs involved. Have your accountant make a concise, understandable list of all costs related to bottom-line profits.
- List of marketing materials. You need to be able to describe all of the materials and spending required to successfully market the product. How will you sell it? Will there be an ad campaign? A slogan?
That’s what you need to make your pitch.
Article © Copyright 2001 Stanley I. Mason. Syndicated by Paradigm News, Inc.
