|
 |
Research
Research is an important tool when marketing new inventions.
Market research is like reverse engineering. You start with the customer and work backwards through retail, distribution, marketing, manufacturing, licensing - to research and development.
 |
 |
Assume Nothing
Research is a detailed analysis of how everything functions within a given market.
Assuming anything can be a fatal mistake.
An inventor discovers unique solutions to problems or unique benefits for established needs. In order to successfully commercialize your invention, you have to convince others of it's value and viability.
You have to determine that people will buy your invention and that it will create profits.
Many successful inventors sell their own inventions to prove their product can make money before they negotiate licensing or investment.
Selling your own invention was once a difficult task but today it is much easier. The details of how this is done is covered in 5 Big Lies.
Know Why
As part of your research, you want to know why a customer would buy your invention? What would they pay? What choices do they have among competitive products? Where would they purchase your invention? What companies supply similar products?
What do you know about these companies? What profits do they make with their other products?
Where do they get new products? What kind of manufacturing facilities do they have? What kind of equipment do they use? You actually can't know enough - the more you know the better.
It is possible, and it can happen, that someone might come along and say to you, "Hey, I can make more money with your invention than all these other things I'm doing and I'm going to make you an offer you can't refuse."
Of course this can happen, and it is rare, but it helps if you can attract attention and interest to yourself.
Marketing is Strategic
Marketing new invention products is strategic and is based on good research.
It is similar to military strategy that is based on good intelligence. If you have poor intelligence you get a flawed strategy resulting in poor results.
As an inventor, you should create new inventions that customers want.
The more you know about your potential customers and the companies that deal with them - the better chances you have of selling your inventions.
Today, inventors have the advantage of utilizing the Internet for this purpose.
Investor Calculator
In the classic start-up situation, investors purchase a share of a new company for an amount of money.
They look for a return on investment, hoping to cash in when the company grows.
How much they spend, and how much ownership they get in return, are both subject to negotiation. There are no easy rules or simple formulas.
Investors weight the risks of investing against the risks of investing against the potential gain, using two classic financial formulas -- Net Present Value and Internal Rate of Return -- as a common basis for comparison.
Click on this link to access a calculator that will help you evaluate both sides of the table - what the investor gets, and what you give up.
