Many times people visit my office to have me help them get started with l selling their inventions. I tell them to go find a company they think would be interested in licensing or buying their product and or service. Often the inventors already have a company in mind from the time they first start working on their projects. I think, however, they should do a little research before making a final decision. I offer the following advice though they don’t always expect it.
If they have improved upon an existing product, say a popular soap product, it would behoove them to find out who the main competitor of that product is. Why? If they were to bring the improved product to the company who makes the original, the company might indeed be interested in either buying or licensing the rights to the new product. Then one of two things could happen.
The best-case scenario would be that the soap company would manufacture the product and pay agreed upon royalties.
But more likely the product would be shelved until later on – or never. That company already has the market share for their soap product and since the bottom line is the driver of the deal, why should they spend money to make improvements on a product that is already selling well?
On the other hand, if my client were to bring the product to the main competitor of this giant soap company, it might be very interested in gaining a larger market share. Certainly, it would be far more likely.
After deciding whom to call, the prospective entrepreneurs often call back to find out what they should do next.
I tell them to look on the Internet to find the company contact information. There will probably be a listing of officers and departments but, as I’ve often found, those lists are somewhat outdated; so I would get the main number and call the switchboard. Ask for a contact name and title. It helps to be as specific as you can be with the person at the switchboard so they don’t steer you too far off the track.
I recommend that as soon as my clients begin talking to a contact person they find out for sure if that person is indeed the right person within the company to be talking with.
In this regard, there are a couple of important points to keep in mind.
First, and the company will probably insist on it anyway, make sure you have a signed Non-Disclosure Agreement (NDA) in place before discussing an idea or product in any detail.
Then make sure the person you are speaking with is a decision-maker. This will possibly help speed along the approval process. This is not always the case, but it usually helps.
It’s interesting to me that when these people call me back to report their progress they are so impressed that they have spoken to a vice president or other high-level executive in a large company and have gotten to the next steps. It’s so exciting.
I hope you all get to experience it soon!
Article – Copyright 2001 Stanley I. Mason. Syndicated by Paradigm News, Inc.
