When inventors contact my company about Homework I love to explain the reasoning having a simple example. Consider it this way, when a manufacturer is getting ready to decide to produce, manufacture, and market a brand new product which could potentially cost $50,000 to $150,000 to produce plus inventory costs, they might definitely take their time to make sure that they may be making a good business decision in advancing together with the product (i.e.: they have done their homework about the product). Therefore, it is possible to sum up “research” as the procedure of gathering every piece of information necessary to make a good business decision before you make the big financial expenditure. It might generally be assumed that the more hours, effort and cash (i.e.: “risk”) that the company must spend to build up an invention, the better they may evaluate the potential license. Keep in mind that even if a product seems to be easy and low priced, the entire process of developing and manufacturing is rarely basic and inexpensive. Companies will evaluate such criteria as customer comments, retail price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are intending on Learn More Here, then yes you need to perform homework. Essentially, you feel the maker from the product and consequently you must perform research in your invention the same as other manufacturers would. The problem that I have found is many inventors who choose to manufacture their own inventions do little, if any marketing due diligence, which is a big mistake.
Option 2 – Licensing for Royalties – if you are planning on licensing for royalties, i then believe you are able to minimize your homework efforts, because ahead of any company licensing your invention, they will perform their very own research. In case you are by using a company like Invention Home, the price to advertise your invention to companies might be minimal – therefore it might amount to more to really carry out the homework than it would to just InvenitHelp the invention to companies (which, is ultimately your very best type of research anyway). Remember, you ought to have taken enough time to accomplish your basic consumer research along with a patent search earlier along the way to be confident that your merchandise is definitely worth pursuing to start with (i.e.: the merchandise is not already out there and there is a demand).
Allow me to summarize. If you are planning on investing a great deal of money your invention, then you should always analyze the chance first to be certain it’s worth pursuing; however, whenever you can actively promote your invention to companies with minimal cost, you can rest assured that an interested company will perform their particular due diligence (not count on yours). Note: it is always beneficial to have marketing due diligence information available while you discuss her response with prospective companies; however, it is not easy to get these details so you should balance the time and effort and expense of gathering the information with the real necessity of having it.
I also provides you with some homework tips.As discussed, the concept of marketing due diligence is always to gather as much information as is possible to create a well-informed decision on investing in any invention. In the perfect world, we will have all the relevant info on sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, these details may not be very easy to come by.
When you are not able to pay a professional firm to complete he has a good point, it is actually possible to perform the research on your own; however, you must understand that research needs to be interpreted and utilized for decision-making and on its own, it provides no value. It is actually the things you use the info that matters. Note: I would personally recommend that you just do NOT PURCHASE “market research” from an Invention Promotion company. Often sold like a “starting point” (they’ll usually approach you again with an expensive “marketing” package), the details are largely useless since it is not specific research on your invention. Rather, it is off-the-shelf “canned” industry statistics, which will not really assist you in making an informed decision.