HELP! Product idea. Now what?

GregGreg Posts: 1subscriber
I`ve got an idea for a product. A "I don`t want to reinvent the wheel, just improve upon it", sort of thing. The problem is that I don`t think I can make this in my garage on my own. Maybe an engineer would come in handy here, or a machinist, or maybe I need both.
Can I just sell an idea? Can I, with the help of some pro, build a prototype and sell it? Should I patent the product and license it to be built? Should I try to manufacture it myself?
Where do I go from here?
 
 

Comments

  • davennydavenny Posts: 2subscriber
    Capital & Time will be the two most critical variables
    in your decision.  If you are low on capital the best way to get a return
    on your idea is patent it and license it to be produced and sold.

    If you have plenty of time and you want to be more apart of the products future
    then you should probably hire an engineer and build a prototype.

    How do you plan to distribute this product and what are your logistics like?
  • davennydavenny Posts: 2subscriber
    Mike,
    I know several people who have tried to do this, the problem they have always come across is cutting up the equity and profits, two, control over the company and three never getting enough venture capital.
    I wish you the best of luck, what kind of partners are you looking for?
  • LGS2003LGS2003 Posts: 1subscriber
    I think this is where the business plan comes into play.  You may not require doing a full fledged business plan, but atleast do tons of research prior to investing any money.
    A business plan forces you to find distributors, marketing plans, costs, advertising techniques as well as research market share and demographic research to ensure you will be able to sell your product.
    Prior to opening my store, the idea sat at our house on my computer for 8 months while I hashed and rehashed how we were going to make money.
    Granted, nothing is concrete and there will be some changes to each plan and things will need to be broaden and re explored, but the business plan allows you to open nearly all the doors prior to diving in with both feet.
    Good luck with your research
  • davennydavenny Posts: 2subscriber

    Mike,
    I know several people who have tried to do this, the problem they
    have always come across is cutting up the equity and profits, two,
    control over the company and three never getting enough venture capital.
    I wish you the best of luck, what kind of partners are you looking for?

    1. cutting up the profits?  I`m not sure what the problem is
    here.  The corporation has "X" amount in expenses (IE COGS) and
    "Y" sales the difference would be the profits, which would be split
    btween the two parties,  the idea generator would do with his/her
    half as pleases  the corporation would keep the profits and use it
    for the development of additional products,
    2. It is a corporation,  the people submitting their ideas
    would have no control over the corporation.  Just like the people
    who go to McDonalds  for lunch have no say in the way the rest. is
    being managed ( with the exception of their ability not to patronize
    the business)
    3. you are right venture capital could be a tough one,  But if
    i can create enough  vested interest and benefits for the
    organizations success,  Any and all financing needs will be
    eliminated.
    Am I missing something???
     
    Mike



    Mike,

    First in regards to "splitting up the profits" I hope everyone on
    this forum knows how to calculate profits, but thanks for the summary. 
    The point I was trying to make is you have more then two parties
    normally.  Unless you are going to bankroll everything yourself. 
    With other people that had your same idea, they wanted all the partners
    (graphic designers, brander, consultants, engineers, PR agents) all to either
    take an equity stake or be paid on future profits / revenues.  (This is because they could never secure
    enough VC for the first deal).


     


    Second, your corporation would not be like a Mcdonalds
    because people ideas and products are an extension of themselves.  They want to have control over the future of
    the product.  If you have watched American
    Inventor at all you can see how people talk about their product ideas.  These are the kind of people you would be
    dealing with.


     


    Someone would eventually sue you because you made a decision
    in regards to their product that they did not like.


     


    Third, I am glad you agree the VC would be difficult and
    your problem with self financing from the success of past products is it
    normally take at least 2 years for a general product to be a profitable product
    for the company.


     


    Gook Luck, I have always like the idea and if you are really
    serious about getting this corp going I know several people who would probably
    be interested.

  • davennydavenny Posts: 2subscriber
    Interesting, Mike why dont you give me a call at 1-800-838-7716.  I would like to discuss some of the details of this idea.
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