When inventors contact my company about Homework I like to explain the reasoning by using a simple example. Think about it using this method, if a manufacturer is about to decide to produce, manufacture, and market a whole new item that could potentially cost $50,000 to $150,000 to make plus inventory costs, they will definitely place their time to ensure they may be setting up a good business decision in continuing to move forward with the product (i.e.: have they done their homework around the product). Therefore, you can summarize “homework” as the process of gathering all the information necessary to create a good business decision before making the large financial expenditure. It may generally be assumed that this much more time, effort and funds (i.e.: “risk”) which a company must spend to formulate an invention, the greater they may measure the potential license. Keep in mind that even though something appears to be easy and inexpensive, the whole process of developing and manufacturing is rarely simple and easy low priced. Companies will evaluate such criteria as customer opinions, list price points, unit cost to produce, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing all by yourself – If you are planning on find this, then yes you have got to perform research. Essentially, you become the company in the product and for that reason you must perform homework on the invention the same as other manufacturers would. The situation that I have discovered is that many inventors who elect to manufacture their own personal inventions do little, if any marketing due diligence, and that is a big mistake.
Option 2 – Licensing for Royalties – if you are intending on licensing for royalties, then I believe you can minimize your due diligence efforts, because ahead of any company licensing your invention, they may perform their very own due diligence. When you are employing a company like Invention Home, the expense to showcase your invention to companies could be minimal – therefore it may cost more to truly carry out the due diligence than it might to just InvenitHelp the invention to companies (which, is ultimately your greatest form of due diligence anyway). Remember, you should have taken enough time to accomplish your basic market research along with a patent search earlier in the process to feel comfortable knowing that your products or services may be worth pursuing in the first place (i.e.: the item will not be already out there and you will find a demand).
Allow me to summarize. If you are intending on investing a great deal of money your invention, then it is best to analyze the means first to make sure it’s worth pursuing; however, provided you can actively promote your invention to companies with minimal cost, you can be assured that the interested company will work their particular research (not count on yours). Note: it usually is beneficial to have marketing homework information available as you discuss imp source with prospective companies; however, it is not necessarily easy to get this information so you must balance the effort and expense of gathering the info using the real need for having it.
Also i will provide you with some due diligence tips.As discussed, the thought of marketing due diligence is usually to gain as much information as you possibly can to make a well-informed decision on buying any invention. Inside a perfect world, we would have the relevant facts about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data might not be an easy task to find.
In case you are not in a position to pay an expert firm to accomplish Get More Info, it is actually possible to perform the research all by yourself; however, you need to realize that research must be interpreted and utilized for decision-making and alone, it provides no value. It really is whatever you do with the data that matters. Note: I would personally recommend that you DO NOT PURCHASE “consumer research” from an Invention Promotion company. Often sold like a “1st step” (they’ll usually approach you again by having an expensive “marketing” package), the information is largely useless because it is not specific research in your invention. Rather, it can be off-the-shelf “canned” industry statistics, which can not always assist you in making an educated decision.