How to Take Your Invention Ideas to Market

The light bulb began as an idea before Thomas Edison turned it into a reality and brought it to the market.

So you've got the next big thing. It's an invention you came up with that you know everyone will want. Now you need to let the public know about your invention while at the same time protecting the idea so no one steals it. This can be an intimidating process to someone who is used to inventing not marketing, but it is something that every inventor has to deal with after the initial thrill of coming up with the idea wears off.

Instructions

1. Patent your idea. The patent process can take time, but it is essential in protecting your invention. It is a legal protection by the government that states the invention is your idea and no one else can copy it without your permission. You need to research your idea to make sure no one has already patented it. This can take weeks, and you will probably want to hire a patent attorney to help. Also, decide if you are going to pursue international patents to protect imitators outside of the U.S. from copying your idea. This can be an expensive process between lawyer's fees and patent fees. Once the patent search comes back that the idea isn't already patented, you will need to fill out the extensive paperwork to file. The patent application requires detailed information about your idea and final drawings of it among a host of other information.

2. Assess the market while you are in the patent process. Find out how large the market is and what the competing products are. Who is your competition going to be? How will your product fit into the marketplace? This is information that will help you determine if your invention has any commercial viability. And if it does, then the information can help you determine how many units of your invention you might initially need.

3. Determine how much your product will sell for once your patent is secure. This is going to be essential in setting your price. Are there tweaks that can be made to the product to make it less expensive? Next, you'll have to add the costs of marketing, packaging, shipping and administration. Finally, what will your profit margin be? Now compare the final price to the competition. It should be competitive.

4. Decide if you can handle the business end. You are the inventor, but you may not be a great businessman. You may want to consider bringing on a partner to handle the business of marketing the invention, maintaining inventory and inventory fulfillment.

5. Consult a lawyer to set up your type of business. You will also want to form a business entity that recognizes this, whether your business is a sole proprietorship, partnership or corporation. A lawyer can fill out the necessary paperwork and file it. You will also need to start establishing credit under the business name by setting up a checking account and making business transactions.

6. Put together your business plan. A business plan is your operating guide for your business. It looks at what the market is (information from step 2), how you will reach that market, how you will allocate your resources, growth projections, potential problems and potential opportunities. While there is no specific format for a business plan, it should contain or address all of these elements. Just make sure that all of the details are pertinent to your product and how you can sell it. You will show your business plan to lenders when you are seeking loans. The business plan will allow the lender to get a feel for the market you are entering into and the product you want to manufacture.

7. Build your capital. Gather together all your funding sources whether they are your own or loans. Gather enough to not only produce your first run of product but to maintain the business until revenues begin coming in. You can do this by using your business plan to get a loan, using personal resources, or in extreme cases, maxing out your credit card.

8. Begin manufacturing. You may be making the product yourself or you may be outsourcing production. If you can do the production without taking on a lot of additional costs, then it may be more cost-effective for you to manufacture your product in-house. If on the other hand, you need to purchase a factory, set up a production line and hire lots of people, then you may want to outsource the manufacturing. This isn't a permanent decision. As sales increase, the numbers may justify you bringing the manufacturing into your own space. Study the process once it begins to see if there are ways to streamline it for future production runs.

9. Begin marketing your product at the same time you begin production. You don't want to begin your marketing efforts too early because if customers find themselves having to wait around for a product that doesn't exist yet, they won't be happy. You also don't want to wait too late to begin marketing because product that is sitting around isn't helping you pay your bills. Send out press releases to media outlets. Set up speaking opportunities or attend trade shows to talk about or demonstrate your product. Begin running any advertisements you have planned in your marketing plan.

Tips & Warnings

• Be careful about companies who advertise that they will help you bring your invention to market. Though it sounds inviting, some of the companies are scams and others will take a very large portion of your revenues.

References

• U.S. Patent and Trademark Office
• Ask the Inventors.com

Resources

• United Inventors Association