Marketing your invention

 

When inventors contact my company about due diligence, I like to explain the concept with a simple example. Think of it this way, if a manufacturer is preparing to make the decision to develop, manufacture and market a new product that could cost $ 50,000 to $ 150,000 to produce plus inventory costs, they will surely take their time to make sure they are. making a good business decision by going ahead with the product (that is, they have done their homework on the product). So you can summarize "due diligence" as the process of gathering all the information you need to make a good business decision before making a big financial expense. In general, it can be assumed that the more time, effort, and money (ie, "risk") a company must spend to develop an invention, the more it will evaluate the potential license. Keep in mind that even if a product appears to be simple and inexpensive, the development and manufacturing process is rarely simple and inexpensive. Companies will evaluate criteria such as customer feedback, retail price points, manufacturing unit cost, competitive landscape, manufacturing feasibility, market opportunity, etc.


Inventors often wonder if they need to perform due diligence on their invention.


As mentioned, this will depend on the option you have chosen to bring your product to market.


Option 1 - Manufacture on your own: If you plan to manufacture and market the invention on your own, then yes, you will need to perform due diligence. Essentially, you become the manufacturer of the product, and as a result, you must perform due diligence on your invention just as other manufacturers would. The problem I have found is that many inventors who choose to make their own inventions do little to no marketing due diligence, which is a big mistake.


Option 2 - Royalty Licensing: If you plan to license royalty, I think you can minimize your due diligence efforts, because before any company licenses your invention, they will do their own due diligence. If you are working with a company like Invention Home, the costs of marketing your invention to companies can be minimal; therefore, it might cost you more to do due diligence than just marketing the invention to companies (which is ultimately your best form of due diligence anyway). Remember, you should have taken the time to do your basic market research and a patent search earlier in the process to make sure your product is worth looking for in the first place (i.e. the product is not already on the market and there is a demand).


Let me summarize. If you plan to invest a large amount of money in your invention, you should always analyze the opportunity first to make sure it is worth taking advantage of; however, if you can actively market your invention to companies at minimal cost, you can be sure that an interested company will conduct its own due diligence (not dependent on yours). Note: It is always helpful to have marketing due diligence information available when discussing your invention opportunity with prospective companies; however, this information is not always easy to obtain, so you must balance the effort and expense of collecting the information with the actual need to have นวัตกรรมสิ่งประดิษฐ์.

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