When inventors contact my company about Homework I like to explain the concept having a simple example. Look at it this way, in case a manufacturer is getting ready to decide to build up, manufacture, and market a fresh merchandise that may potentially cost $50,000 to $150,000 to produce plus inventory costs, they could definitely place their time to ensure they can be making a good business decision in advancing together with the product (i.e.: they have done their homework about the product). Therefore, you can summarize “research” as the whole process of gathering all the details necessary to create a good business decision before making the big financial expenditure. It may generally be assumed how the more hours, effort and money (i.e.: “risk”) a company must spend to develop an invention, the greater they will measure the potential license. Remember that even if a product is apparently basic and affordable, the process of developing and manufacturing is rarely easy and inexpensive. Companies will evaluate such criteria as customer comments, list price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing on your own – If you are intending on review, then yes you need to perform homework. Essentially, you become the manufacturer from the product and for that reason you must carry out the homework in your invention much like other manufacturers would. The trouble i have discovered is the fact that many inventors who choose 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 it is possible to minimize your research efforts, because before any company licensing your invention, they may perform their particular homework. In case you are by using a company for example Invention Home, the price to showcase your invention to companies might be minimal – therefore it could cost you more to completely perform research than it would to merely InvenitHelp the invention to companies (which, is ultimately your greatest method of research anyway). Remember, you need to have taken enough time to do your basic market research and a patent search earlier at the same time to be reassured that your product or service will be worth pursuing from the beginning (i.e.: the merchandise is not really already out there and there exists a demand).
Permit me to summarize. If you are planning on investing a large amount of cash on your invention, then you should always analyze the means first to make sure it’s worth pursuing; however, if you can actively advertise your invention to companies with minimal cost, you can rest assured that an interested company will do their particular homework (not count on yours). Note: it will always be helpful to have marketing homework information available as you may discuss website link with prospective companies; however, it is really not always easy to have these details so you should balance the effort and cost of gathering the details together with the real need for having it.
Furthermore, i will provide you with some due diligence tips.As discussed, the thought of marketing due diligence would be to gain as much information as possible to produce a well-informed decision on buying any invention. In a perfect world, we might have all the appropriate facts about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data is not always simple to come by.
If you are not in a position to pay an expert firm to accomplish Discover More, it is easy to perform the research by yourself; however, you need to realize that research ought to be interpreted and used for decision-making and by itself, they have no value. It really is whatever you use the data that matters. Note: I would recommend that you just do NOT PURCHASE “researching the market” from an Invention Promotion company. Often sold as being a “initial step” (they’ll usually approach you again by having an expensive “marketing” package), the information is largely useless because it is not specific research on the invention. Rather, it can be off-the-shelf “canned” industry statistics, which will not really help you make an educated decision.