The start of an effective invention is a good idea. But that's just the beginning. To be successful, an inventor must learn how to turn that idea into a compelling product or service that a company wants to license and consumers decide to buy. Based on our experience, we offer these suggestions:
- Educate yourself about inventing. Learn about the inventing process, rewards and pitfalls, skills needed, general licensing process and terms of agreements, the value of intellectual property, helpful resources, etc. Inventor organizations provide an inexpensive, friendly introduction and we strongly recommend them to all inventors. Check the UIA (www.UIAUSA.org) or Inventor's Digest (www.InventorsDigest.com) for lists of local clubs. Additional information is available on this site under Inventing Resources.
- Evaluate your skill set, resources, temperament, expectations. Know what skills and resources you have--and what you lack. Assess where you might need help in the process and how you can make up for those lacks as cheaply as possible. Also decide if you're a soup-to-nuts entrepreneur or a dedicated inventor who wants to license--or if you're going to make this decision based on each invention. And set realistic expectations. The majority of inventors don't strike it rich. Even when you license an idea, you typically only make a small percentage on each unit sold. Keep your expectations low and pursue inventing only if you enjoy it first and foremost as a hobby.
- Observe and learn. The best ideas are based on observation of real problems and opportunity. Focus is another important requirement; most successful inventors concentrate on an industry or field of invention. Learn your target markets and consumers. Read, shop, observe, discuss. And keep yourself open to trends and new influences.
- Keep an inventor's notebook. If you have lots of ideas, you should methodically trap them on paper. The goal is to record enough of any concept to return to it later and pursue development--if it still seems promising. Periodically review, edit, and weed the notebook. Use a rigorous checklist to decide which ideas seem most promising. Involve trusted but tough-minded friends or family members in the critique.
- Refine and research your idea. Clearly articulate the problem or opportunity you're addressing and the scope of your idea. Determine what competition exists, the ideal price point, regulatory issues, etc. Research manufacturers, retailers, customers, competitive products, and intellectual property issues. Make sure you can identify at least 2-3 solid clients for your idea and develop your product with them in mind. Or decide if you want to make and sell this yourself. In either case, create a specific to-do list.
- Prototype, test, and refine. Prototyping is critical. As we continually remind inventors, companies license products, not ideas. Most important is a works-like model. Do this as cheaply possible and use off-the-shelf parts if they'll work. Remember that this is a reiterative process, involving testing by you and others. Be open-minded to change and invest wisely. And keep in mind safety or regulatory issues. Whatever you can resolve for a licensing company makes the invention more desirable.
- Form your IP strategy. You'll hear many different opinions about investing in patents. Our advice is to go slow. Patenting is expensive, and we've seen too many inventors spend money before fully resolving key engineering and design issues. Also, be aware of the value of any patent. Generally, it's better to obtain a utility patent than a design patent. And just because a patent has been awarded doesn't give your idea intrinsic value. It just means that it's a unique invention--not necessarily a good one.
- Prepare your sales pitch and package. Your goal is to present a company or agent with materials that will sell the potential and uniqueness of your invention. Key components: a brief product summary, sales pitch, competitive research, a prototype or visuals, and intellectual property information. Keep the package clean, concise, and compelling. Also practice your verbal pitch if you plan to meet with a representative. Tailor the pitch and package as needed to various clients, complying with specific client requirements, processes, and channels.
- Approach clients, line up appointments. This assumes you've already identified companies with good reputations and open door policies to outside inventions. Securing appointments is challenging at best, and even the most experienced inventors usually turn to an agent by this point. Also, know what confidentiality you'll be guaranteed when pitching your ideas and decide what you're comfortable with.
- Present your idea. Whether you're pitching to a licensing company or agent, be professional, clear, and succinct. Listen to feedback. Be sure you know what/when next step is and follow up accordingly. Be prepared to refine and pitch again. Persist--up to a point. Then let go and move on to the next client or the next idea.
- Negotiate a deal. Know in advance what terms are realistic. Decide how and when you want to involve legal counsel. Understand the development process and timeline, and contribute what you can, as requested by the licensing company.
- Incorporate what you learn. If you're smart and fortunate enough to have a product launch, observe how and where it sells. See if you can build on any momentum--or learn lessons why the invention didn't succeed.
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