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: Atlanteknology - Technology News for Atlantic Canada

How to design something and (hopefully) make money from it

By RCP

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Here is a classic situation - a person has a really good idea, they make some prototypes, refine the product, do some testing, and ultimately a fascinating widget comes out at the other end.

The individual, who is generally not rich, then faces the all too frequent problem - how to bring the product to market?

One of the primary problems with going to a large retailer is the power disparity between the two sides and, equally as important, there is the possibility the retailer could simply steal the idea and manufacture the product itself. This happens more than you might imagine.

One way to help reduce this risk is to ask prospective partners to enter into confidentiality agreements. The problem with this is simply that most large retailers will simply say no, and move on to the next person.

One way around the problem is to fully document the inventive process and have someone with no stake in the matter participate by reviewing all of your notes and signing each page of your notebook (you should be keeping a notebook with respect to the inventive process).

Another good solution is to file a so-called provisional patent, if the product is capable of being patented - something you will have to get advise on, or file an industrial design if it is here in Canada. An industrial design will protect the aesthetic characteristics of the product but not the functional characteristics. Please keep in mind that industrial designs are generally not all that powerful.

If you are peddling your idea to companies in Canada, the maintenance of a notebook may not be as helpful as it would be in the United States (the US is a first to conceive jurisdiction, as opposed to Canada, which is a first patent jurisdiction), but it does provide some measure of ownership.

The final possibility, if the company you are pitching the idea to does not want to sign a confidentiality agreement, is to share as much of the idea as possible without disclosing the essence of it. This also has the benefit of providing a "hook" with which you can reel in the prospect.

Keep in mind, as an inventor, that consumer demand for new products is out pacing the ability of large companies to come up with marketable ideas. The key to success is making sure your approach and your pitch is as slick as possible.

The next step is to create what is known as a "sell sheet". This is a one page document of your product that outlines its benefits, your target audience, and its projected profits. Your name and contact information should be on this sheet.

Once your sell sheet is ready, develop a list of manufacturers that target your ideal customer and make some more products. Find the name and number for the director of marketing or sales and call them telling them you are a product developer with a great idea. Do NOT say you are an inventor. In your pitch (which should be very brief) concisely state the idea, the profit potential, comparative advantages and a timeline for results. Offer to send the individual the sell sheet. Then be persistent about following up.

Good luck!

Full post as published by Atlanteknology - Technology News for Atlantic Canada on October 21, 2008 (boomark / email).