When inventors contact my company about Homework I really like to explain the reasoning having a simple example. Consider it this way, if a manufacturer is about to decide to build up, manufacture, and market a whole new product that could potentially cost $50,000 to $150,000 to produce plus inventory costs, they would most certainly get their time to make certain that these are building a good business decision in advancing using the product (i.e.: they have done their homework around the product). Therefore, you may summarize “homework” as the whole process of gathering everything necessary to generate a good business decision prior to making the larger financial expenditure. It may generally be assumed that this more time, effort and money (i.e.: “risk”) which a company must spend to build up an invention, the greater number of they will measure the potential license. Remember that even when something seems to be easy and low cost, the entire process of developing and manufacturing is rarely easy and affordable. Companies will evaluate such criteria as customer feedback, list price points, unit cost to manufacture, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing all on your own – If you are planning on published here, then yes you have got to perform research. Essentially, you then become the producer from the product and thus you ought to perform the due diligence on your invention much like other manufacturers would. The issue that we are finding is the fact that many inventors who elect to manufacture their very own inventions do little, if any marketing homework, which is actually 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 due diligence efforts, because before any company licensing your invention, they will perform their particular homework. If you are working with a company such as Invention Home, the costs to advertise your invention to companies can be minimal – therefore it may cost you more to truly perform the due diligence than it would to just InvenitHelp the invention to companies (which, is ultimately the best kind of due diligence anyway). Remember, you should have taken some time to do your basic consumer research as well as a patent search earlier along the way to be confident that your products or services is worth pursuing in the first place (i.e.: the product is not already on the market and you will find a demand).
I want to summarize. If you are planning on investing a great deal of money your invention, then you should always analyze an opportunity first to be certain it’s worth pursuing; however, provided you can actively advertise your invention to companies with minimal cost, there is no doubt that this interested company will work their own due diligence (not depend on yours). Note: it will always be helpful to have marketing research information available while you discuss read here with prospective companies; however, it is not always easy to obtain these details so you must balance the time and effort and expense of gathering the info with all the real need for having it.
Also i provides you with some research tips.As discussed, the idea of marketing due diligence would be to gather as much information as you possibly can to create a well-informed decision on investing in any invention. Within a perfect world, we would supply the relevant information on sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this information may not be very easy to come by.
Should you be not in a position to pay an expert firm to perform a knockout post, it is easy to carry out the research all by yourself; however, you must know that research ought to be interpreted and employed for decision-making and naturally, it has no value. It can be everything you do with the information that matters. Note: I might recommend that you simply do NOT PURCHASE “market research” from an Invention Promotion company. Often sold like a “1st step” (they’ll usually approach you again with the expensive “marketing” package), the information is largely useless as it is not specific research on your invention. Rather, it is off-the-shelf “canned” industry statistics, which can not really assist you in making a well informed decision.