Bringing Your Product to Market: Fast-Track Approaches to Cashing in on Your Great Idea , 2nd Edition

A revised and expanded new edition of the classic guide for inventors When this comprehensive resource for inventors was first published, bringing a new product to market was costly, time-consuming, and very risky. But today, new technologies including the Internet have drastically changed the world of inventing. In the past, inventors had to handle production, manufacturing, packaging, and distribution by themselves. Today, large companies are constantly looking for new inventions to license, and new technology makes it easier than ever for inventors to outsource what they can't handle themselves. A leading expert on invention and innovation, author Don Debelak has brought this one-of-a-kind inventor's guide fully up to date. This new edition is packed with trustworthy, proven advice on product design, manufacturing, patenting, licensing, distribution, financing, and more. Plus, the latest innovative strategies in funding, outsourcing, and Internet marketing make this the most complete and up-to-the-minute guide available for inventors like you. Inside, you'll learn how to: Recognize a valuable, moneymaking idea Determine if your product is market-ready Create a custom, step-by-step product-to-market strategy Adjust your strategy for changing market conditions Find financial help from investors and partners Use turbo-outsourcing to bring your product to market in a year or less Find a manufacturer to cover up-front development costs With more funding, licensing, and outsourcing options available, it's easier and cheaper than ever to get your product on the shelves. So why wait? Whether you're an experienced inventor who wants to sell more of your creations, or just someone with a million-dollar idea, this is your guide to financial success. Don Debelak's expert advice and timeless wisdom have already helped thousands of people turn their inventions into cash. Don't miss the boat! BRINGING YOUR PRODUCT TO MARKET . . . IN LESS THAN A YEAR......Page 5 ACKNOWLEDGMENTS......Page 7 CONTENTS......Page 9 PREFACE: WELCOME TO THE WORLD OF INVENTING......Page 17 A GREAT TIME TO BECOME AN INVENTOR......Page 19 WHAT HAPPENED TO THE ROADBLOCKS?......Page 21 FAST TRACK TO SUCCESS......Page 22 INSPIRATION TO MOVE AHEAD......Page 23 Part I: PREPARE FOR SUCCESS......Page 25 STEP 1. EVALUATE POTENTIAL IDEAS: RECOGNIZE THE MONEYMAKERS......Page 27 GENERATE A GREAT IDEA: DISCOVER “HOT” PRODUCT IDEAS IN YOUR DAILY LIFE......Page 29 SEARCH FOR WINNING CHARACTERISTICS: USE A NEW PRODUCT SCORECARD TO FORECAST SUCCESS......Page 30 PERFORM QUICK AND EASY MARKET RESEARCH: EMPLOY TACTICS THAT GENERATE QUICK FEEDBACK......Page 35 KNOW WHETHER YOUR PRODUCT WILL MAKE MONEY: DETERMINING PERCEIVED VALUE VERSUS MANUFACTURING COST Determining the Price/Value Relationship......Page 41 THE EDGE COUNTS......Page 46 STEP 2. LOOK LIKE A WINNER: DEMONSTRATE BUSINESS SAVVY AND CUSTOMER KNOWLEDGE......Page 47 DROP YOUR PARANOIA: TALK ABOUT YOUR PRODUCT IDEA......Page 48 COPE WITH PROBLEMS: LEARN THAT EVERY SITUATION HAS A SOLUTION......Page 49 GET SAVVY: CREATE THE RIGHT IMPRESSION WITH CONTACTS BY DOING YOUR HOMEWORK......Page 51 KNOW YOUR CUSTOMERS: UNDERSTAND WHO THEY ARE AND WHAT THEY’RE LIKE......Page 57 CHECK OUT THE COMPETITION: DISCOVER WHAT CUSTOMERS THINK......Page 60 CREATE A SIZZLING DIFFERENCE: ENSURE THAT YOUR PRODUCT STANDS OUT......Page 66 STEP 3. BUILD A BUSINESS FOUNDATION: LINE UP KEY HELPERS AND FINANCING......Page 72 FIND ADVISORS AND HELPERS: STRENGTHEN YOUR TEAM WITH EXPERTS......Page 73 STRIKE A DEAL THAT WORKS: GET THE MOST FROM YOUR HELPERS......Page 76 PREPARE A FINANCING PLAN: GROW WITHOUT GIVING UP CONTROL......Page 79 STRUCTURING A FUNDING PLAN......Page 82 FIND FUNDING: LOOK BEYOND TRADITIONAL INVESTORS......Page 85 PREPARE AN INVESTOR PRESENTATION: CREATE A CAN’T-MISS SCENARIO......Page 87 STEP 4. PREPARE FOR KICKOFF: DECIDE ON PATENTS AND PROTOTYPES......Page 94 UNDERSTAND WHAT PATENTS OFFER: GET THE MOST MILEAGE OUT OF A PATENT INVESTMENT......Page 95 IMPLEMENT A PATENT STRATEGY: PROTECT EVERYONE’S INVESTMENTS......Page 102 BUILD A PROTOTYPE THAT DEMONSTRATES THE CONCEPT: SHOW THAT YOUR PRODUCT DELIVERS......Page 106 CREATE A “LOOKS LIKE, ACTS LIKE” PROTOTYPE AND PACKAGE: LEAVE NOTHING TO THE IMAGINATION......Page 109 STEP 5. CHOOSE THE RIGHT FAST-TRACK STRATEGY: UNDERSTAND WHAT WORKS BEST FOR YOUR PRODUCT......Page 114 THREE STRATEGIES FOR MARKET INTRODUCTION: EXPLORE MULTIPLE OPTIONS TO INCREASE YOUR CHANCES OF SUCCESS......Page 115 KEY FACTORS IN DETERMINING YOUR STRATEGY: CHOOSE WHAT WORKS FOR YOU, YOUR PRODUCT, AND YOUR MARKET......Page 118 LICENSE TO A MARKET PLAYER: LOWER YOUR RISK AND COLLECT A ROYALTY......Page 122 CAPITALIZE ON TURBO-OUTSOURCING: KEEP CONTROL WHILE MINIMIZING RISK......Page 127 BUILD A COMPANY: MAXIMIZE YOUR PROFIT AND WEALTH POTENTIAL......Page 132 Part II: THE FAST TRACK: LICENSING YOUR IDEA......Page 139 STEP 6A. PROVE THE CONCEPT: DEMONSTRATE WHY YOUR PRODUCT IS “HOT”......Page 141 LOCATE EXPERT HELP: COMMUNICATE THE PRODUCT’S POTENTIAL BY USING INDUSTRY HELPERS......Page 142 CAPTURE THE MARKET POTENTIAL: SHOW YOU ARE ON THE LEADING EDGE......Page 144 PROVE MARKET DEMAND: USE TACTICS THAT PRODUCE PROVISIONAL ORDERS......Page 146 ILLUSTRATE MANUFACTURING COSTS: PRODUCE SIGNIFICANT PROFITS ON EACH ORDER......Page 148 SHOW A PATH TO THE FUTURE: EXPLAIN HOW YOUR PRODUCT IS THE FIRST OF MANY......Page 150 STEP 7A. CHOOSE YOUR TARGETS: DETERMINE WHICH COMPANIES WILL BENEFIT THE MOST......Page 153 DECIDE ON A POSITIONING STRATEGY: CHOOSE A STRATEGY BASED ON POTENTIAL LICENSEES’ GOALS......Page 155 LOOK FOR COMPANIES WITH THE RIGHT INGREDIENTS: LEARN WHAT CHARACTERISTICS MAKE A COMPANY THE RIGHT TARGET......Page 158 PICK YOUR POTENTIAL TARGETS: UNDERSTAND THEIR BUSINESS GOALS......Page 161 MAKE YOUR INITIAL CONTACTS: CONFIRM THAT A COMPANY IS A GOOD CANDIDATE......Page 163 STEP 8A. PRESERVE YOUR CAPITAL: USE LOW-COST TACTICS FOR LANDING A LICENSE......Page 165 AVOID A SALES TEST: DON’T INCUR COSTS YOU CAN’T RECOUP......Page 166 ENLIST HELPERS: USE THEIR INVESTMENT OF TIME AND MONEY TO CUT YOUR OUTLAYS......Page 168 CREATE OPTIONS TO LOWER COSTS: LET POTENTIAL LICENSEES PAY FOR DESIRED TESTING......Page 170 SIGN MEMORANDUMS OF UNDERSTANDING ( MOUs): OFFER AN INCENTIVE TO POTENTIAL LICENSEES......Page 171 STEP 9A. DEVELOP A LICENSING PLAN: FIND THE QUICKEST WAY TO MARKET......Page 177 PROPOSE A TARGET INTRODUCTION TIMETABLE: ENCOURAGE A QUICK DEAL......Page 178 PREPARE THE LICENSING PLAN: INCLUDE THE KEY ELEMENTS FOR SUCCESS......Page 180 STEP 10A. SELL YOUR CONCEPT: CREATE THE HIGHEST VALUE FOR YOUR PRODUCT......Page 191 CREATE THE DYNAMIC OPENING: CONVERT PROSPECTS FROM THE START......Page 193 GENERATE A CAN’T-MISS LICENSING PRESENTATION: APPEAL TO LICENSEES’ GOALS......Page 194 INITIATE THE LICENSING NEGOTIATIONS: CONVINCE THE PROSPECT IT’S WIN-WIN......Page 198 FINALIZE THE LICENSING DEAL: NEGOTIATE THE KEY POINTS IN YOUR FAVOR......Page 201 Part III: THE FAST TRACK: TURBO-OUTSOURCING......Page 205 STEP 6B. PROVE THE CONCEPT: ESTABLISH THAT THE PRODUCT WILL MAKE MONEY......Page 207 FIND YOUR SPACE: SHOW WHY YOU ARE A CRUCIAL INGREDIENT TO A PRODUCT’S SUCCESS......Page 209 GENERATE BUZZ: SHOWCASE THE MARKET’S POTENTIAL......Page 210 ESTABLISH WHO GETS WHAT SHARE: CHOOSE A STRATEGY THAT BENEFITS THE INVENTOR......Page 212 EVALUATE MANUFACTURING COST VERSUS PERCEIVED VALUE: DETERMINE WHETHER THERE IS ENOUGH PROFIT FOR THREE PARTNERS......Page 217 FOLLOW UP WITH BUYERS: DISCOVER SUPPORT LEVELS REQUIRED TO MAKE SALES......Page 218 STEP 7B. CHOOSE YOUR PARTNERS: FIND DISTRIBUTION AND MANUFACTURING PARTNERS TO ACCELERATE SALES......Page 220 LOCATE THE RIGHT MARKETING ARM: SIGN SALES POWER TO DRIVE THE DEAL......Page 222 LOCATE THE RIGHT MANUFACTURING COMPANY: DISCOVER MANUFACTURERS LOOKING FOR PRODUCTS......Page 226 OBTAIN COMMITMENTS FOR PERFORMANCE: INSIST ON A MAJOR EFFORT FROM PARTNERS......Page 229 STEP 8B. PRESERVE YOUR CAPITAL: ENCOURAGE THE MANUFACTURER TO PICK UP THE UP-FRONT COSTS......Page 233 SELL THE MANUFACTURER ON THE BENEFITS: OBTAIN HELP DURING DEVELOPMENT......Page 235 USE THE MARKETING PARTNER’S SALES SUCCESS: MOTIVATE THE MANUFACTURER TO FUND START-UP COSTS......Page 238 CREATE EASY ENTRY POINTS FOR MANUFACTURERS: LOWER THE RISK FOR JOINING THE TEAM......Page 240 NEGOTIATION PRINCIPLES FOR SMOOTH RELATIONSHIPS: PREVENT PROBLEMS WITH THE RIGHT TYPE OF AGREEMENT......Page 242 STEP 9B. DEVELOP A MARKETING PLAN: CREATE THE BACKUP FOR A SUCCESSFUL DEAL......Page 245 MATCH THE PLAN TO RESOURCE LEVELS: FOCUS ON THE RESULTS YOU CAN ACHIEVE......Page 247 PREPARE THE MARKETING PLAN: INCLUDE THE KEY ELEMENTS FOR SUCCESS......Page 251 STEP 10B. SELL YOUR DEAL: MOTIVATE COMPANIES TO MOVE QUICKLY......Page 260 FOCUS ON QUICK MARKET SALES: SET THE STAGE WITH YOUR OPENING REMARKS......Page 262 EXPLAIN THAT THE MARGIN LOSS IS SMALL: ILLUSTRATE EACH PARTNER’S BENEFITS TO THE OTHER......Page 263 TARGET A MAJOR PLAYER TO BASE-LOAD SALES: STRUCTURE AN IRRESISTIBLE DEAL......Page 265 PREPARE THE TURBO-OUTSOURCE PRESENTATION: PUT IT TOGETHER WITH SIZZLE......Page 266 NEGOTIATE THE AGREEMENTS: KEEP IT SIMPLE AND FLEXIBLE......Page 267 Part IV: THE LONG-TERM INVESTMENT: BUILDING A COMPANY......Page 275 STEP 6C. PROVE THE CONCEPT: ESTABLISH THAT THE PRODUCT WILL MAKE MONEY......Page 277 DEVELOP A MANUFACTURING STRATEGY: COVER BOTH SHORT-AND LONG-TERM OPTIONS......Page 279 GENERATE FIRST SALES: SHOW THAT CUSTOMERS PLACE HIGH VALUE ON THE PRODUCT......Page 281 TEST DURING THE SALES PERIOD: DISCOVER HOW TO GENERATE THE HIGHEST MARGINS......Page 284 DETERMINE YOUR MANUFACTURING COSTS: EVALUATE YOUR PROFIT VERSUS YOUR RISK......Page 285 ILLUSTRATE FUTURE MARKETS: SHOW RAPID GROWTH POTENTIAL FOR INVESTORS......Page 288 STEP 7C. CHOOSE YOUR SALES STRATEGY: DETERMINE HOW TO BECOME A SIGNIFICANT MARKET FORCE......Page 289 DISCOVER ALL YOUR DISTRIBUTION OPTIONS: CHOOSE DISTRIBUTION THAT ENCOURAGES SMALL COMPANIES......Page 291 FOCUS ON YOUR TOP THREE CHOICES: DEDICATE THE EFFORT NEEDED TO CLOSE MAJOR ACCOUNTS......Page 296 DEVELOP A SALES PLAN TO PENETRATE ACCOUNTS: BUILD MOMENTUM IN THE MARKET......Page 299 STEP 8C. PRESERVE YOUR CAPITAL: STRUCTURE DEALS TO KEEP CONTROL......Page 301 OFFER EARLY DEALS WITH BUYBACK CLAUSES: SAVE CONTROL OF YOUR COMPANY......Page 303 SELL VENDORS ON LONG-TERM BENEFITS: OFFER LOYALTY IN RETURN FOR CONCESSIONS......Page 304 LEARN ALL THE TACTICS FOR STRETCHING THE DOLLAR: USE BOTH SALES AND PURCHASING TACTICS......Page 306 STRUCTURE SHORT-TERM FINANCIAL SUPPORT FROM INVESTORS: OBTAIN FINANCIAL BACKING WITH MINIMAL LOSS OF OWNERSHIP......Page 308 LOOK FOR PRIVATE-LABEL OR OEM AGREEMENTS TO BACK LOANS: AVOID DILUTING YOUR OWNERSHIP POSITION......Page 310 STEP 9C. DEVELOP A BUSINESS PLAN: CREATING HIGH VALUE FOR YOUR COMPANY......Page 314 UNDERSTAND THE THREE-YEAR PAYBACK: GENERATE FUNDS FOR THE RIGHT-SIZE PRODUCT LAUNCH......Page 316 DELIVER WHAT THE READER WANTS: EXPLAIN THREE POINTS TO ENTICE INVESTORS......Page 318 BUSINESS PLAN OUTLINE......Page 320 EXPLANATION OF BUSINESS PLAN ELEMENTS......Page 321 STEP 10C. SELL YOUR PRODUCT: MOTIVATE CUSTOMERS AND DISTRIBUTION......Page 335 CREATE SALES AND PROMOTIONAL MATERIAL: DISCOVER THE MESSAGE THAT SELLS......Page 337 STAGE YOUR SALES TO GENERATE MOMENTUM: FOCUS YOUR FIRST EFFORTS ON EASIER-TO-SELL CHANNELS......Page 339 DEVELOP AN ARSENAL OF PROMOTIONAL TACTICS: ENSURE YOUR EARLY SALES CUSTOMERS ENJOY SUCCESS......Page 342 FORGE ALLIANCES TO BUILD CREDIBILITY: SELECT TACTICS THAT WILL ENCOURAGE STEADY ACTIVITY......Page 344 Appendix A: THE GO-NO-GO DECISIONS......Page 348 EXPANDED 12-POINT GO-NO-GO DECISION MATRIX......Page 349 Appendix B: CHECKLISTS BEFORE STARTING THE INTRODUCTION PROCESS......Page 350 CHECKLIST 1: THE SUCCESS FACTORS FOR LICENSING......Page 351 CHECKLIST 2: THE SUCCESS FACTORS FOR TURBO-OUTSOURCING......Page 352 CHECKLIST 3: THE SUCCESS FACTORS FOR STARTING YOUR OWN COMPANY......Page 353 CHECKLIST 5: SALES AND MARKETING CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 354 CHECKLIST 6: ADMINISTRATIVE CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 355 CHECKLIST 7: MANUFACTURING CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 356 Appendix C: SAMPLE DOCUMENTS......Page 357 Appendix D:WEB ADDRESSES FOR INVENTOR STORIES......Page 370 GLOSSARY......Page 373 BOOKS, GENERAL......Page 380 CATALOGS......Page 381 FINANCING......Page 382 INVENTOR SITES......Page 383 MANUFACTURING......Page 384 OVERSEAS SOURCES......Page 385 PRESENTATIONS......Page 386 PROTOTYPES......Page 387 TOYS......Page 388 TV SHOPPING NETWORKS......Page 389 INDEX......Page 391

A revised and expanded new edition of the classic guide for inventors

When this comprehensive resource for inventors was first published, bringing a new product to market was costly, time-consuming, and very risky. But today, new technologies including the Internet have drastically changed the world of inventing. In the past, inventors had to handle production, manufacturing, packaging, and distribution by themselves. Today, large companies are constantly looking for new inventions to license, and new technology makes it easier than ever for inventors to outsource what they can't handle themselves.

A leading expert on invention and innovation, author Don Debelak has brought this one-of-a-kind inventor's guide fully up to date. This new edition is packed with trustworthy, proven advice on product design, manufacturing, patenting, licensing, distribution, financing, and more. Plus, the latest innovative strategies in funding, outsourcing, and Internet marketing make this the most complete and up-to-the-minute guide available for inventors like you. Inside, you'll learn how to:
* Recognize a valuable, moneymaking idea
* Determine if your product is market-ready
* Create a custom, step-by-step product-to-market strategy
* Adjust your strategy for changing market conditions
* Find financial help from investors and partners
* Use turbo-outsourcing to bring your product to market in a year or less
* Find a manufacturer to cover up-front development costs


With more funding, licensing, and outsourcing options available, it's easier and cheaper than ever to get your product on the shelves. So why wait? Whether you're anexperienced inventor who wants to sell more of your creations, or just someone with a million-dollar idea, this is your guide to financial success. Don Debelak's expert advice and timeless wisdom have already helped thousands of people turn their inventions into cash. Don't miss the boat!

A revised and expanded Second Edition of the classic book for inventorsDon Debelak is a leading expert on invention and innovation. Because new technologies, including the Internet, have drastically changed the world of inventing, Debelak has wholly revised his classic work to include many new marketing strategies, including turbo-outsourcing, that allow inventors to bring their products to market much faster and more cheaply than ever before Revised and expanded with new information, this inventor's guide to the Internet shows how the World Wide Web revolutionized inventing and empowered the entrepreneur in previously unimaginable ways while offering practical advice for bringing a product to market in the digital age. Original.