When inventors contact my company about Homework I like to explain the idea having a simple example. Think about it using this method, when a manufacturer is about to make the decision to formulate, manufacture, and market a whole new product that may potentially cost $50,000 to $150,000 to make plus inventory costs, they would undoubtedly place their time to ensure that they may be creating a good business decision in moving forward with all the product (i.e.: they have done their homework around the product). Therefore, it is possible to sum up “homework” as the entire process of gathering all the information necessary to generate a good business decision before making the large financial expenditure. It can generally be assumed that the additional time, effort and cash (i.e.: “risk”) a company must spend to develop an invention, the greater they may look at the potential license. Understand that even if an item looks to be simple and inexpensive, the entire process of developing and manufacturing is rarely easy and low priced. Companies will evaluate such criteria as customer opinions, list price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are intending on Resources, then yes you have got to perform research. Essentially, you then become the maker in the product and thus you should carry out the homework on your invention just like other manufacturers would. The situation that we have found is many inventors who choose to manufacture their own inventions do little, if any marketing homework, and that is a big mistake.
Option 2 – Licensing for Royalties – if you are intending on licensing for royalties, i then believe you can minimize your homework efforts, because ahead of any business licensing your invention, they will likely perform their particular due diligence. If you are by using a company for example Invention Home, the price to promote your invention to companies might be minimal – therefore it could amount to more to really perform the research than it might to just InvenitHelp the invention to companies (which, is ultimately your very best form of due diligence anyway). Remember, you ought to have taken some time to complete your basic researching the market plus a patent search earlier during this process to be reassured that your product or service is definitely worth pursuing to begin with (i.e.: the item is not already on the market and there is a demand).
Let me summarize. If you are planning on investing a great deal of money on your invention, then it is wise to analyze the chance first to be certain it’s worth pursuing; however, if you can actively market your invention to companies with minimal cost, you can rest assured that the interested company will do their own personal research (not depend upon yours). Note: it is always beneficial to have marketing research information available as you discuss try here with prospective companies; however, it is far from always easy to have these details so you must balance the effort and expense of gathering the information with all the real need of having it.
I also gives you some research tips.As discussed, the concept of marketing homework is always to gather as much information as possible to create a well-informed decision on purchasing any invention. In a perfect world, we will have got all the relevant facts about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, these details is not always an easy task to come by.
Should you be not able to pay a specialist firm to do see this page, it can be easy to perform research on your own; however, you need to realize that research must be interpreted and useful for decision-making and on its own, it has no value. It is actually whatever you do with the details that matters. Note: I would recommend that you simply do NOT PURCHASE “consumer research” from an Invention Promotion company. Often sold as being a “1st step” (they’ll usually approach you again with the expensive “marketing” package), the details are largely useless as it is not specific research in your invention. Rather, it really is off-the-shelf “canned” industry statistics, which will not always help you make an informed decision.