When inventors contact my company about Research I love to explain the reasoning using a simple example. Think about it in this way, if your manufacturer is getting ready 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 most definitely get their time to ensure they can be building a good business decision in continuing to move forward together with the product (i.e.: they have done their homework on the product). Therefore, you are able to summarize “research” as the procedure of gathering all the details necessary to produce a good business decision before making the larger financial expenditure. It may generally be assumed that this additional time, effort and funds (i.e.: “risk”) that a company must spend to develop an invention, the more they will evaluate the potential license. Keep in mind that even when something seems to be easy and low cost, the process of developing and manufacturing is rarely simple and easy low cost. Companies will evaluate such criteria as feedback from customers, list price points, unit cost to produce, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing all on your own – If you are intending on Get the facts, then yes you will need to perform due diligence. Essentially, you feel the manufacturer from the product and as a result you must perform the research on the invention the same as other manufacturers would. The problem i are finding is the fact that many inventors who choose to manufacture their own personal inventions do little, if any marketing research, which is a big mistake.
Option 2 – Licensing for Royalties – if you are intending on licensing for royalties, i believe you are able to minimize your due diligence efforts, because prior to any business licensing your invention, they will perform their own personal due diligence. If you are employing a company such as Invention Home, the expenses to advertise your invention to companies may be minimal – therefore it might amount to more to really carry out the due diligence than it would just to InvenitHelp the invention to companies (which, is ultimately the best type of research anyway). Remember, you need to have taken some time to accomplish your basic market research along with a patent search earlier along the way to be assured that your product or service is definitely worth pursuing to begin with (i.e.: the item is not already available on the market and there is a demand).
Allow me to summarize. If you are intending on investing a lot of cash on your invention, then it is wise to analyze the opportunity first to be certain it’s worth pursuing; however, when you can actively market your invention to companies with minimal cost, you can rest assured that this interested company will perform their own personal homework (not count on yours). Note: it is always helpful to have marketing homework information available as you discuss Going Here with prospective companies; however, it is really not always easy to acquire this data so you have to balance the time and effort and cost of gathering the data with the real demand for having it.
I also provides you with some due diligence tips.As discussed, the thought of marketing homework is always to gain as much information as possible to create a well-informed decision on investing in any invention. In a perfect world, we would supply the relevant facts about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this info may not be easy to locate.
When you are not in a position to pay an expert firm to do read this, it is actually possible to carry out the research by yourself; however, you need to realize that research should be interpreted and employed for decision-making and naturally, it has no value. It is everything you use the info that matters. Note: I might recommend that you simply do NOT PURCHASE “market research” from an Invention Promotion company. Often sold being a “starting point” (they’ll usually approach you again with an expensive “marketing” package), the information is largely useless since it is not specific research on your invention. Rather, it is off-the-shelf “canned” industry statistics, that will not necessarily help you make an informed decision.