The Lone Ranger Is Dead

The Invention Factory

Team Player Advantages

The Best Of Times

Chapter 2: Fairs, Craft Shows And Events

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What to Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Off And Running

Building A Business

Are You Making Money?

Chapter 3: Selling Locally

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Off And Running

Building A Business

Are You Making Money?

Chapter 4: Home Shopping: TV And Mail Order Catalogs

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Off And Running

Building A Business

Are You Making Money?

Chapter 5: Internet Sales

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Off And Running

Building A Business

Are You Making Money?

Chapter 6: Selling On Commission

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

The First Steps

Off And Running

Building A Business

Are You Making Money?

Chapter 7: Joint Ventures

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pro And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Building A Business

Are You Making Money?

Chapter 8: Private Label Marketing

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Building A Business

Are You Making Money?

Chapter 9: Licensing

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Building A Business

Are You Making Money?

Chapter 10: Your Own Company

The Basics

Perfect Products

Your Goals

Other Choices

Money Matters

Protection

Prototypes

Research

Manufacturing

Key Contacts

Pros And Cons

Up, Up, And Away

Key Resources

What To Expect

Keys To Success

Momentum Makers

Before You Start

First Steps

Building A Business

Are You Making Money?

Appendix A: Patent Strategies

ACKNOWLEDGMENTS

OVERVIEW

Infringement Remedies

Patent Law—Key Points

Patent Agents Vs. Patent Attorneys

Interviewing An Agent Or Attorney

TYPES OF PROTECTION

Trademarks

Copyrights

Utility Patents

Design Patents

Provisional Patents

OTHER TACTICS

Confidentiality Agreements And Nondisclosure Statements

Inventor’s Notebook

Document Disclosure Program

PATENT CLAIMS

PATENT STRATEGIES

Don’t Bother

Patent Pending Strategy

Low-Quality Patents

Broad Patent With Few Specifics Or Limitations

Many Weak Claims

FOREIGN PATENTS

RECOMMENDED BOOKS

Appendix B: Prototyping For Inventors

ACKNOWLEDGMENT

OVERVIEW

CONCEPT MODELS

Using Balsa Wood

Using Hobby Shop Products

“LOOKS LIKE, WORKS LIKE” PROTOTYPES

Using Stock Plastics

Using Stock Metals

Machining Stock Plastics And Metals

Casting Plastics At Room Temperature

Casting Metal Parts At Low Temperature

Casting Metal Parts At High Temperature

Computer-Driven Additive Processes

NEGOTIATING WITH PROTOTYPERS

RESOURCES

Appendix C: Funding Your Invention

OVERVIEW

RAISING MONEY FOR YOUR INVENTION

Important Considerations

Early Investments

Preparing For Production

Product Introduction

FUNDING SOURCES

Money From Individuals

Money From Manufacturers

Raising Big Money

Other Types Of Funding

Glossary
Index

 

Book Excerpt   Chapter 1 I’ve worked with inventors for over 20 years, and most of the successful ones have created and developed their products on their own and love being independent. “Being my own boss” is the answer I usually get when I ask them what they like best about being an inventor. Indeed, the independent “eccentric” inventor—embodied by everyone from Thomas Edison to Doc Brown in the “Back to the Future” movies—has been lionized in American culture, and it’s an image that has strong attraction today for most inventors. But in fact, successful inventors are not Lone Rangers—which, for inexperienced inventors, should be regarded as a good thing. I’ve talked to interviewing more than a hundred successful inventors over the last five years, and we found that they frequently don’t have a lot of business management experience, don’t have any more money than the average person, and typically have never tried to introduce a product before. The key moment in their invention process has been when they recognized their shortcomings and sought help from other people. That help is exactly what they need to succeed, and it can come in hundreds of forms, such as these: A manufacturer willing to extend dating on orders. An independent sales agent or industry insider who offers tips on getting a product out into the market. A retailer who heavily promotes your product at its expense. A manufacturer who funds your research and development for the option on a private label contract. A marketer who shares a booth with you at a major convention, or provides an introduction to key industry buyers. An industry connection who helps you fund your initial production run. Another inventor who tells you the best fairs and events to attend, and helps you price your product. A manufacturer who lets you use his or her model shop to produce your products in return for help filling back orders on Saturday. An industry insider who first invests in your company and then comes to work with you to make the product a success. A retailer who gives you a provisional order (they’ll buy when and if you can deliver) so you can get a manufacturer to fund an initial production run. You should think about the kind of help you will need right at the start, before you even begin to introduce a product to market. If you can prototype and make your product at home, you can probably survive on your own until you’re ready to sell. But most inventors have products that require a little more investment up front, and they could go broke if they wait too long to get experienced advice. Not only that, but getting help early will prevent a lot of mistakes in creating your product, and this will help you save money for the crucial tasks that lie ahead. The Lone Ranger Is Dead The product life cycle today is short, very short. Products can come and go in just two to three years, and this dramatic change presents both problems and opportunities for inventors. On the one hand, inventors can’t afford to work alone and follow the normal, slow two- to five-year process to get their product to market—since in that time the market may pass them by. This means inventors can’t be independent, can’t control everything that happens with their product, and may have just a few short years of successful selling. The good news is that established marketers and manufacturers have an even harder time getting to market quickly, so nimble inventors can beat them to the punch. The big manufacturers are responding to this challenge by working with an increasing number of outside companies, including inventors, to keep on the leading edge of their markets. This also means that manufacturers, marketers, distributors, and retailers are generally willing to help inventors. All you have to do is ask. The simple fact is that teamwork equals success. In today’s crowded market, individual inventors have a hard time standing out and getting noticed. To build the necessary size and momentum, you need resources, and if you don’t have them, you must team up with someone who does—someone who has the money, the manufacturing prowess, or the distribution reach required to turn a new product into a success. Every month I hear at least one new story of an inventor forming alliances to succeed. Below are examples of three inventors who’ve done this, and they are just the tip of the iceberg. If you keep alert, you’ll read about other examples in your local newspapers and business magazines. Might that other person’s experience work for you? Remember to always be on the lookout for opportunities to make alliances. Karen Alverez of Dublin, California, invented the Baby Comfort Strap, a product that keeps children safely strapped into shopping carts. When she first started her company, Baby Comfort Co., she sought advice from Sharon Trupiano, owner of Kazoo’s Consignment Shop for Kids, which sells a fair amount of new children’s accessories. Among other things, Trupiano suggested that Alverez also contact Safe Strap Co., a manufacturer that sells straps to supermarkets for their carts. Alverez asked Safe Strap for help, and the company president, Paul Giampvolo, agreed to make low quantities of Alverez’s product at a quantity price as well as agreeing to 90-day payment terms to help launch the product. Nathaniel Weiss’ company, G-Vox, in Philadelphia, hit $5 million in sales in 1999. He got his start with a hardware/ software product package that automatically transcribes notes played on a guitar into sheet music. His product allows guitarists to work on a new song without having to stop constantly to write down each note. Weiss has had a board of advisors from the beginning. His big break came when he formed an alliance with Fender Guitar Co. Fender agreed to sell his product to guitar stores, both as an accessory and as an option on Fender guitars. Once his company generated some initial sales success, Weiss went out and found several marketing people with extensive experience selling to retail music stores to push his product into the market. Vic Pella of Studio City, California, created several new products to cash in on the year 2000, including a baseball hat with an LCD display on the front that says “Happy 2000,” a teddy bear that shouts “Happy Millennium” when squeezed, and the Countdown Candle, which burns down in seven days. Pella didn’t have the funding to finance the large volume he needed for his products to cash in on this one-time event. So he struck a deal with a Hong Kong manufacturer who gave extended terms in return for the manufacturing and distribution rights to his products in the Far East. The deal was win-win for both parties. Pella’s company, Idea Express Inc., received products it couldn’t afford to pay for in advance, and the Hong Kong manufacturer had its own products to sell in its primary markets. The Invention Factory There are three tasks involved in launching a successful product. Finding an opportunity in the marketplace, and then creating a product to meet that opportunity. The well-conceived product meets a consumer desire or need and can be produced at a price that provides buyers with value. This is normally an inventor’s strength. Manufacturing the product. Tooling, manufacturing fixtures, working capital, quality control, value engineering, product liability insurance, regulatory approvals, and a host of other complicated concerns are the realm of the manufacturer. Marketing the product. Pricing, packaging, promotional allowances, and connecting with major buyers are some of the simpler tasks of marketing. Understanding customer needs, positioning the product so it will sell, creating a memorable brand and product image, and finding customer hot buttons are some of the tactics marketers use to successfully introduce a product. As you look at these three tasks, ask yourself: Does it make sense for inventors to try and do everything involved in bringing a product to market? I don’t think so. Each of the jobs of inventing, marketing, and manufacturing requires in-depth expertise. Your goal as an inventor is to learn to use other people so that both you and they make money. Once you do that, you’ll be able to devote your time to being creative and inventing new products. Unfortunately, there is no single way to find partners. Each market and each product are different and require a particular approach; for each new endeavor, you will need to go to shows, make industry contacts, and find just the right marketing and manufacturing partners. But once you become skilled at finding partners, you’ll only be limited by your creativity and your ability to come up with new ideas that the market wants. Team Player Advantages Creative deals are struck by inventors every day to help launch their products. Teaming with other people improves your market intelligence, gives you access to key market contacts, helps guide you to the best products, and gives you the funding you need to make an impact in the market. Teaming up also offers one more incredible benefit to inventors. It dramatically cuts the financial risk of taking a new product to market. I have heard hundreds of stories of inventors who have spent as much as $30,000—and sometimes much more—on a new product that failed. Countless inventors have put themselves in financial peril by trying single-handedly to put a product on the market. New product introductions are an inherently risky business. Inventors are much better off spreading the risks and taking advantage of other people’s expertise. Here’s some of The advantages of being a team player are overwhelming. This is just a short list of the most important ones. By teaming with marketing organizations, inventors gain the resources and contacts needed to push their product into the market with momentum. Inventors lower their investment and risk. Lowering risk gives inventors the opportunity to start over again if their products should fail. Concentrating on inventing allows inventors to introduce several new products each year. Teaming up may cost the inventor profits on each unit sold, but the inventor typically makes more money because the volume of sales will be much higher. Inventors minimize the number of costly marketing and manufacturing mistakes by teaming up with experts in these fields. The Best Of Times I believe new and underfinanced inventors have never been in a more favorable position. The reason for this is that companies simply cannot keep up with the pace of new products on their own. They are forced to work jointly with other companies. Small to midsize companies are also unable to fund research and development, manufacturing, and marketing of new products. Companies are specializing more and more in one of these three areas so it is rare to find a company that isn’t selling at least one product developed by someone else. Marketers and manufacturers no longer believe they can develop all the products they need, nor do they believe they can keep up with all the changes in the market. As a result, marketers and R&D engineers have become much more receptive to inventors, and inventors can typically find at least one company to consider a worthwhile proposal. Of the nine tactics in this audio book, some are brand new, such as setting up an agreement to market your invention on a commission basis or becoming a virtual entrepreneur. Others are more traditional, such as licensing an idea, setting up a private label agreement, or selling at fairs and trade shows. But what inventors should like best is that they can now, more easily than ever before, find partners willing to take over the jobs of manufacturing and marketing—partners with experience, expertise, and resources. And because of this, the types of arrangements are growing and changing every day. By seeking out the best arrangement for each product, you leave yourself free to invent—which is exactly what you want to do, how you will make the most money, and how you can get the most products to market.