Presentation on theme: "Bringing a New Product to Market Prepared by: SCORE 476 Sponsored by the US Small Business Administsration Staten Island, New York."— Presentation transcript:
Bringing a New Product to Market Prepared by: SCORE 476 Sponsored by the US Small Business Administsration Staten Island, New York
I have a new product idea. What do I do now? Find out who to sell it to? Learn what the numbers show. Cost – Selling Price – Profit Licensing or Venturing – What Road to Take?
Provisional Patent Application and Licensing A provisional application is something you write up yourself. The provisional application can be filed with the Patent Office for $80 and will buy you one year of protection. Before filing the provisional, you should compile a complete list of potential licensees.
Prospect List Your prime candidates are companies already selling into your target market Trade journals and trade directories. Buyers Stores likely to carry your product Library resources Companies already making similar products - but not yours. Internet Search
Licensable-Quality Patent Licensing path - the odds are not good – ONE IN ONE HUNDRED GET LICENSED. Because inexperienced inventors don't take the time to determine whether they can get a licensable-quality patent. Have the patent attorney do a patent search. – Cost about $1,000. and visit – http://www.willitsell.com/fulleval.htm
Licensing After getting PPA Call into each company on your list. Try to get through to the person responsible for "dealing with outside inventors". Legal Dept Purchasing Dept Most companies require you sign a "disclosure form.
Licensing Agreement Negotiation of Licensing Agreement – TAKE IT OR LEAVE IT 5 % to 6% is normal You must have a minimum deal Have your attorney review the agreement.
Licensing Caution: This strategy assumes that you will be writing the provisional application yourself. Attorney is costly. Caution: This strategy assumes that you will not procrastinate. Use Express Mail with a certificate of Express Mailing
A Low-Cost Approach To Venturing Consider the Capital Needed Consider the time, energy and ability to get out and sell. Which is better -- Licensing or Venturing? Dealing with investors – Giving up Control Patent Protection - Costly
Find Contract Manufacturers ThomasRegister.com - Manufacturers HarrisInfo.com Find someone who works in the Purchasing Department Look for a quote" on tooling and piece-price at various quantity levels
Selling First decision in selling is pricing. Targeting major account is a mistake. The place to start is with a few local (i.e., within driving distance) owner-operated stores. Put it in on consignment if you have to. Use local advertising and PR. Sales rep or distributor – after local success. Chains – after showing a track record.