When inventors contact my company about Homework I like to explain the concept using a simple example. Think of it this way, when a manufacturer is about to make the decision to develop, manufacture, and market a brand new item that could cost $50,000 to $150,000 to create plus inventory costs, they might most certainly place their time to make certain that these are making a good business decision in moving forward with all the product (i.e.: they have done their homework on the product). Therefore, you can sum up “research” as the procedure of gathering every piece of information necessary to produce a good business decision prior to making the big financial expenditure. It could generally be assumed the more time, effort and funds (i.e.: “risk”) that the company must spend to produce an invention, the better they will likely look at the potential license. Understand that even when a product or service seems to be basic and low priced, the procedure of developing and manufacturing is rarely basic and affordable. Companies will evaluate such criteria as customer feedback, list price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing all on your own – If you are intending on important link, then yes you need to perform homework. Essentially, you become the maker in the product and thus you need to perform research in your invention just like other manufacturers would. The problem which i have realized is many inventors who choose to manufacture their particular inventions do little, if any marketing homework, which is a big mistake.
Option 2 – Licensing for Royalties – if you are planning on licensing for royalties, i believe you may minimize your due diligence efforts, because ahead of any business licensing your invention, they may perform their own personal research. If you are using a company like Invention Home, the expense to promote your invention to companies may be minimal – therefore it could possibly amount to more to completely carry out the homework than it might to just InvenitHelp the invention to companies (which, is ultimately your best method of research anyway). Remember, you should have taken time to accomplish your basic researching the market along with a patent search earlier during this process to be assured that your product or service will be worth pursuing to begin with (i.e.: the product is not already available on the market and there is a demand).
Permit me to summarize. If you are intending on investing a great deal of money your invention, then it is best to analyze the chance first to ensure it’s worth pursuing; however, if you can actively market your invention to companies with minimal cost, there is no doubt an interested company will perform their very own homework (not depend on yours). Note: it is usually useful to have marketing research information available as you discuss great site with prospective companies; however, it is not necessarily always easy to acquire these details so you have to balance the time and effort and expense of gathering the info together with the real need of having it.
I also will provide you with some homework tips.As discussed, the thought of marketing homework is always to gain as much information as possible to make a well-informed decision on investing in any invention. Inside a perfect world, we will supply the appropriate info on sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data is not always very easy to find.
In case you are not capable of pay a professional firm to perform get redirected here, it is easy to perform research all on your own; however, you must understand that research must be interpreted and employed for decision-making and naturally, they have no value. It is actually whatever you use the details that matters. Note: I would personally recommend that you simply do NOT PURCHASE “consumer research” from an Invention Promotion company. Often sold being a “1st step” (they’ll usually approach you again by having an expensive “marketing” package), the information is largely useless as it is not specific research on the invention. Rather, it is actually off-the-shelf “canned” industry statistics, that can possibly not help you make a well informed decision.