How Can I Find a Manufacturer for My Invention?

A manufacturer translates an idea into a sellable product.

A manufacturer turns a product invention into reality. Ideally, you want to find a company that commits to producing your concept into a finished product and that knows how to sell it through large distribution channels. Finding a good manufacturing partner results from a well-defined strategy.

Instructions

1. Start with evaluating the potential market--the people who would normally purchase your product and derive from this where they would go to buy a similar product. This helps to keep an open mind and imagine all the ways your product could be used. Consider talking to others and integrate their feedback into your product idea. This exercise is beneficial, according to Mark Leslie, lecturer at the Stanford Graduate School of Business. Once you have listed a broad array of applications, identify the organizations (distribution channels) that sell these types of products.

2. Research manufacturers with contracts with the distributors you've identified by reading the companies' public financial reports available through the U.S. Securities and Exchange Commission website.

3. Develop a promotional package of your invention with a photo of the product, and a convincing description of the value of the product. When possible, give an overview of the market size and the type of customers who would buy the product. Suggest that you would be open to a profit-sharing arrangement that would allow them and you to benefit from selling the product.

4. Mail the information package to the chief executive and head of product development of the manufacturing companies that you have selected. Tell them that you would like to talk with one of their staff about how well the product aligns with the products that they currently sell.

5. Listen to the interested companies and collect their requirements for licensing a product. Explore how to accommodate their requests and focus on achieving a win-win situation, as recommended by Gary W. Smith, J.D., intellectual property attorney with Posternak, Blankstein & Lund LLP. Legal help from professionals specialized in contract law may help you navigate the deal-making process and ensure that the arrangement protects your interests.

Tips & Warnings

• Start the negotiations with a proposal for a non-exclusive license, for a limited territory and for one or two applications. Then let the manufacturer request to broaden the scope of the license in exchange for increased return to you.

• You typically forfeit control over the product once the license contract is signed. If you desire to be involved with the product design or manufacture, ensure that this is added in the licensing contract.

References

• Stanford Graduate School of Business: "Startups Need a Special Learning Curve for Sales"; Mark Leslie; July-August 2006
• U.S. Securities and Exchange Commission: "Researching Public Companies through EDGAR: A Guide"
• ReedLogic: "Creating a Win- Win Situation: IP Licensing Negotiation Strategies"; Gary W. Smith; 2007

Resources

• "Launch It!: How to Turn Good Ideas Into Great Products That Sell"; Molly Miller-Davidson; 2005