How to Finance an Invention

Everyone has had ideas about the next new invention that will take the market by storm. However, most do not act on it. For those people who do, financing the invention is most often the biggest roadblock on their path to a successful invention. Yet there are steps an inventor can take to make financing an attainable goal.

Instructions

1. Build a prototype of the invention. Most people who finance inventions will not make an investment without first seeing the invention in action. If the building of these prototypes is complicated, an outside prototype firm may be the best option.

2. Prepare a business plan. A business plan details all the fine points of the invention cycle, from production to marketing to sales. A person can do a business plan on his own, but sometimes hiring a professional to prepare the plan is the best route.

3. Search for government or private grants that may be available to inventors. Not all inventions fall under these categories, so this option may not be available for every invention.

4. Contact local venture capital firms for potential financing. These firms often specialize in financing new inventions. There may be a need to release some of the creative control of the invention because these firms may have their own ideas for the invention.

5. Ask friends and family for potential seed money. This is probably the last option in financing because mixing friends and family with business is often a bad idea. However, in some cases it may be the only avenue left for financing an invention.

Resources

• Read this Article in Spanish
• Firms that specialize in building prototypes
• Business plan writing tips