When inventors contact my company about Research I love to explain the concept using a simple example. Think of it using this method, in case a manufacturer is about to choose to build up, manufacture, and market a fresh item that could potentially cost $50,000 to $150,000 to make plus inventory costs, they will most certainly place their time to ensure that they may be building a good business decision in moving forward using the product (i.e.: they have done their homework about the product). Therefore, it is possible to summarize “due diligence” as the process of gathering all the information necessary to make a good business decision before making the larger financial expenditure. It might generally be assumed that the additional time, effort and funds (i.e.: “risk”) a company must spend to produce an invention, the better they may evaluate the potential license. Take into account that even when a product seems to be easy and inexpensive, the procedure of developing and manufacturing is rarely easy and affordable. Companies will evaluate such criteria as customer opinions, retail price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are planning on Learn More, then yes you need to perform homework. Essentially, you are the company of the product and consequently you ought to perform research in your invention just like other manufacturers would. The issue that we have realized is that many inventors who opt to manufacture their own personal inventions do little, if any marketing homework, and that is a big mistake.
Option 2 – Licensing for Royalties – if you are planning on licensing for royalties, then I believe you can minimize your research efforts, because prior to any business licensing your invention, they will perform their particular homework. In case you are by using a company like Invention Home, the costs to showcase your invention to companies might be minimal – therefore it could possibly amount to more to completely perform homework than it will to merely InvenitHelp the invention to companies (which, is ultimately your best type of due diligence anyway). Remember, you have to have taken time to complete your basic researching the market along with a patent search earlier during this process to feel comfortable knowing that your products or services is definitely worth pursuing to begin with (i.e.: this product will not be already in the marketplace and you will find a demand).
Let me summarize. If you are planning on investing a lot of funds on your invention, then you should always analyze the chance first to ensure it’s worth pursuing; however, if you can actively market your invention to companies with minimal cost, there is no doubt that this interested company will perform their particular research (not rely on yours). Note: it usually is beneficial to have marketing due diligence information available when you discuss Website with prospective companies; however, it is really not easy to have this information so you must balance the time and effort and cost of gathering the details with all the real need of having it.
I also will provide you with some research tips.As discussed, the idea of marketing homework is usually to gather as much information as possible to create a well-informed decision on purchasing 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.
Should you be not in the position to pay an experienced firm to perform from this source, it really is possible to carry out the research on your own; however, you need to realize that research should be interpreted and employed for decision-making and on its own, it has no value. It can be everything you do with the details that matters. Note: I would personally recommend that you simply do NOT PURCHASE “consumer research” from an Invention Promotion company. Often sold like a “first step” (they’ll usually approach you again by having an expensive “marketing” package), the information is largely useless since it is not specific research on your own invention. Rather, it can be off-the-shelf “canned” industry statistics, which will not necessarily assist you in making a knowledgeable decision.