Bringing your product to market-- in less than a year : fast-track approaches to cashing in on your great idea

BRINGING YOUR PRODUCT TO MARKET . . . IN LESS THAN A YEAR......Page 5
ACKNOWLEDGMENTS......Page 7
CONTENTS......Page 9
PREFACE: WELCOME TO THE WORLD OF INVENTING......Page 17
A GREAT TIME TO BECOME AN INVENTOR......Page 19
WHAT HAPPENED TO THE ROADBLOCKS?......Page 21
FAST TRACK TO SUCCESS......Page 22
INSPIRATION TO MOVE AHEAD......Page 23
Part I: PREPARE FOR SUCCESS......Page 25
STEP 1. EVALUATE POTENTIAL IDEAS: RECOGNIZE THE MONEYMAKERS......Page 27
GENERATE A GREAT IDEA: DISCOVER “HOT” PRODUCT IDEAS IN YOUR DAILY LIFE......Page 29
SEARCH FOR WINNING CHARACTERISTICS: USE A NEW PRODUCT SCORECARD TO FORECAST SUCCESS......Page 30
PERFORM QUICK AND EASY MARKET RESEARCH: EMPLOY TACTICS THAT GENERATE QUICK FEEDBACK......Page 35
KNOW WHETHER YOUR PRODUCT WILL MAKE MONEY: DETERMINING PERCEIVED VALUE VERSUS MANUFACTURING COST Determining the Price/Value Relationship......Page 41
THE EDGE COUNTS......Page 46
STEP 2. LOOK LIKE A WINNER: DEMONSTRATE BUSINESS SAVVY AND CUSTOMER KNOWLEDGE......Page 47
DROP YOUR PARANOIA: TALK ABOUT YOUR PRODUCT IDEA......Page 48
COPE WITH PROBLEMS: LEARN THAT EVERY SITUATION HAS A SOLUTION......Page 49
GET SAVVY: CREATE THE RIGHT IMPRESSION WITH CONTACTS BY DOING YOUR HOMEWORK......Page 51
KNOW YOUR CUSTOMERS: UNDERSTAND WHO THEY ARE AND WHAT THEY’RE LIKE......Page 57
CHECK OUT THE COMPETITION: DISCOVER WHAT CUSTOMERS THINK......Page 60
CREATE A SIZZLING DIFFERENCE: ENSURE THAT YOUR PRODUCT STANDS OUT......Page 66
STEP 3. BUILD A BUSINESS FOUNDATION: LINE UP KEY HELPERS AND FINANCING......Page 72
FIND ADVISORS AND HELPERS: STRENGTHEN YOUR TEAM WITH EXPERTS......Page 73
STRIKE A DEAL THAT WORKS: GET THE MOST FROM YOUR HELPERS......Page 76
PREPARE A FINANCING PLAN: GROW WITHOUT GIVING UP CONTROL......Page 79
STRUCTURING A FUNDING PLAN......Page 82
FIND FUNDING: LOOK BEYOND TRADITIONAL INVESTORS......Page 85
PREPARE AN INVESTOR PRESENTATION: CREATE A CAN’T-MISS SCENARIO......Page 87
STEP 4. PREPARE FOR KICKOFF: DECIDE ON PATENTS AND PROTOTYPES......Page 94
UNDERSTAND WHAT PATENTS OFFER: GET THE MOST MILEAGE OUT OF A PATENT INVESTMENT......Page 95
IMPLEMENT A PATENT STRATEGY: PROTECT EVERYONE’S INVESTMENTS......Page 102
BUILD A PROTOTYPE THAT DEMONSTRATES THE CONCEPT: SHOW THAT YOUR PRODUCT DELIVERS......Page 106
CREATE A “LOOKS LIKE, ACTS LIKE” PROTOTYPE AND PACKAGE: LEAVE NOTHING TO THE IMAGINATION......Page 109
STEP 5. CHOOSE THE RIGHT FAST-TRACK STRATEGY: UNDERSTAND WHAT WORKS BEST FOR YOUR PRODUCT......Page 114
THREE STRATEGIES FOR MARKET INTRODUCTION: EXPLORE MULTIPLE OPTIONS TO INCREASE YOUR CHANCES OF SUCCESS......Page 115
KEY FACTORS IN DETERMINING YOUR STRATEGY: CHOOSE WHAT WORKS FOR YOU, YOUR PRODUCT, AND YOUR MARKET......Page 118
LICENSE TO A MARKET PLAYER: LOWER YOUR RISK AND COLLECT A ROYALTY......Page 122
CAPITALIZE ON TURBO-OUTSOURCING: KEEP CONTROL WHILE MINIMIZING RISK......Page 127
BUILD A COMPANY: MAXIMIZE YOUR PROFIT AND WEALTH POTENTIAL......Page 132
Part II: THE FAST TRACK: LICENSING YOUR IDEA......Page 139
STEP 6A. PROVE THE CONCEPT: DEMONSTRATE WHY YOUR PRODUCT IS “HOT”......Page 141
LOCATE EXPERT HELP: COMMUNICATE THE PRODUCT’S POTENTIAL BY USING INDUSTRY HELPERS......Page 142
CAPTURE THE MARKET POTENTIAL: SHOW YOU ARE ON THE LEADING EDGE......Page 144
PROVE MARKET DEMAND: USE TACTICS THAT PRODUCE PROVISIONAL ORDERS......Page 146
ILLUSTRATE MANUFACTURING COSTS: PRODUCE SIGNIFICANT PROFITS ON EACH ORDER......Page 148
SHOW A PATH TO THE FUTURE: EXPLAIN HOW YOUR PRODUCT IS THE FIRST OF MANY......Page 150
STEP 7A. CHOOSE YOUR TARGETS: DETERMINE WHICH COMPANIES WILL BENEFIT THE MOST......Page 153
DECIDE ON A POSITIONING STRATEGY: CHOOSE A STRATEGY BASED ON POTENTIAL LICENSEES’ GOALS......Page 155
LOOK FOR COMPANIES WITH THE RIGHT INGREDIENTS: LEARN WHAT CHARACTERISTICS MAKE A COMPANY THE RIGHT TARGET......Page 158
PICK YOUR POTENTIAL TARGETS: UNDERSTAND THEIR BUSINESS GOALS......Page 161
MAKE YOUR INITIAL CONTACTS: CONFIRM THAT A COMPANY IS A GOOD CANDIDATE......Page 163
STEP 8A. PRESERVE YOUR CAPITAL: USE LOW-COST TACTICS FOR LANDING A LICENSE......Page 165
AVOID A SALES TEST: DON’T INCUR COSTS YOU CAN’T RECOUP......Page 166
ENLIST HELPERS: USE THEIR INVESTMENT OF TIME AND MONEY TO CUT YOUR OUTLAYS......Page 168
CREATE OPTIONS TO LOWER COSTS: LET POTENTIAL LICENSEES PAY FOR DESIRED TESTING......Page 170
SIGN MEMORANDUMS OF UNDERSTANDING ( MOUs): OFFER AN INCENTIVE TO POTENTIAL LICENSEES......Page 171
STEP 9A. DEVELOP A LICENSING PLAN: FIND THE QUICKEST WAY TO MARKET......Page 177
PROPOSE A TARGET INTRODUCTION TIMETABLE: ENCOURAGE A QUICK DEAL......Page 178
PREPARE THE LICENSING PLAN: INCLUDE THE KEY ELEMENTS FOR SUCCESS......Page 180
STEP 10A. SELL YOUR CONCEPT: CREATE THE HIGHEST VALUE FOR YOUR PRODUCT......Page 191
CREATE THE DYNAMIC OPENING: CONVERT PROSPECTS FROM THE START......Page 193
GENERATE A CAN’T-MISS LICENSING PRESENTATION: APPEAL TO LICENSEES’ GOALS......Page 194
INITIATE THE LICENSING NEGOTIATIONS: CONVINCE THE PROSPECT IT’S WIN-WIN......Page 198
FINALIZE THE LICENSING DEAL: NEGOTIATE THE KEY POINTS IN YOUR FAVOR......Page 201
Part III: THE FAST TRACK: TURBO-OUTSOURCING......Page 205
STEP 6B. PROVE THE CONCEPT: ESTABLISH THAT THE PRODUCT WILL MAKE MONEY......Page 207
FIND YOUR SPACE: SHOW WHY YOU ARE A CRUCIAL INGREDIENT TO A PRODUCT’S SUCCESS......Page 209
GENERATE BUZZ: SHOWCASE THE MARKET’S POTENTIAL......Page 210
ESTABLISH WHO GETS WHAT SHARE: CHOOSE A STRATEGY THAT BENEFITS THE INVENTOR......Page 212
EVALUATE MANUFACTURING COST VERSUS PERCEIVED VALUE: DETERMINE WHETHER THERE IS ENOUGH PROFIT FOR THREE PARTNERS......Page 217
FOLLOW UP WITH BUYERS: DISCOVER SUPPORT LEVELS REQUIRED TO MAKE SALES......Page 218
STEP 7B. CHOOSE YOUR PARTNERS: FIND DISTRIBUTION AND MANUFACTURING PARTNERS TO ACCELERATE SALES......Page 220
LOCATE THE RIGHT MARKETING ARM: SIGN SALES POWER TO DRIVE THE DEAL......Page 222
LOCATE THE RIGHT MANUFACTURING COMPANY: DISCOVER MANUFACTURERS LOOKING FOR PRODUCTS......Page 226
OBTAIN COMMITMENTS FOR PERFORMANCE: INSIST ON A MAJOR EFFORT FROM PARTNERS......Page 229
STEP 8B. PRESERVE YOUR CAPITAL: ENCOURAGE THE MANUFACTURER TO PICK UP THE UP-FRONT COSTS......Page 233
SELL THE MANUFACTURER ON THE BENEFITS: OBTAIN HELP DURING DEVELOPMENT......Page 235
USE THE MARKETING PARTNER’S SALES SUCCESS: MOTIVATE THE MANUFACTURER TO FUND START-UP COSTS......Page 238
CREATE EASY ENTRY POINTS FOR MANUFACTURERS: LOWER THE RISK FOR JOINING THE TEAM......Page 240
NEGOTIATION PRINCIPLES FOR SMOOTH RELATIONSHIPS: PREVENT PROBLEMS WITH THE RIGHT TYPE OF AGREEMENT......Page 242
STEP 9B. DEVELOP A MARKETING PLAN: CREATE THE BACKUP FOR A SUCCESSFUL DEAL......Page 245
MATCH THE PLAN TO RESOURCE LEVELS: FOCUS ON THE RESULTS YOU CAN ACHIEVE......Page 247
PREPARE THE MARKETING PLAN: INCLUDE THE KEY ELEMENTS FOR SUCCESS......Page 251
STEP 10B. SELL YOUR DEAL: MOTIVATE COMPANIES TO MOVE QUICKLY......Page 260
FOCUS ON QUICK MARKET SALES: SET THE STAGE WITH YOUR OPENING REMARKS......Page 262
EXPLAIN THAT THE MARGIN LOSS IS SMALL: ILLUSTRATE EACH PARTNER’S BENEFITS TO THE OTHER......Page 263
TARGET A MAJOR PLAYER TO BASE-LOAD SALES: STRUCTURE AN IRRESISTIBLE DEAL......Page 265
PREPARE THE TURBO-OUTSOURCE PRESENTATION: PUT IT TOGETHER WITH SIZZLE......Page 266
NEGOTIATE THE AGREEMENTS: KEEP IT SIMPLE AND FLEXIBLE......Page 267
Part IV: THE LONG-TERM INVESTMENT: BUILDING A COMPANY......Page 275
STEP 6C. PROVE THE CONCEPT: ESTABLISH THAT THE PRODUCT WILL MAKE MONEY......Page 277
DEVELOP A MANUFACTURING STRATEGY: COVER BOTH SHORT-AND LONG-TERM OPTIONS......Page 279
GENERATE FIRST SALES: SHOW THAT CUSTOMERS PLACE HIGH VALUE ON THE PRODUCT......Page 281
TEST DURING THE SALES PERIOD: DISCOVER HOW TO GENERATE THE HIGHEST MARGINS......Page 284
DETERMINE YOUR MANUFACTURING COSTS: EVALUATE YOUR PROFIT VERSUS YOUR RISK......Page 285
ILLUSTRATE FUTURE MARKETS: SHOW RAPID GROWTH POTENTIAL FOR INVESTORS......Page 288
STEP 7C. CHOOSE YOUR SALES STRATEGY: DETERMINE HOW TO BECOME A SIGNIFICANT MARKET FORCE......Page 289
DISCOVER ALL YOUR DISTRIBUTION OPTIONS: CHOOSE DISTRIBUTION THAT ENCOURAGES SMALL COMPANIES......Page 291
FOCUS ON YOUR TOP THREE CHOICES: DEDICATE THE EFFORT NEEDED TO CLOSE MAJOR ACCOUNTS......Page 296
DEVELOP A SALES PLAN TO PENETRATE ACCOUNTS: BUILD MOMENTUM IN THE MARKET......Page 299
STEP 8C. PRESERVE YOUR CAPITAL: STRUCTURE DEALS TO KEEP CONTROL......Page 301
OFFER EARLY DEALS WITH BUYBACK CLAUSES: SAVE CONTROL OF YOUR COMPANY......Page 303
SELL VENDORS ON LONG-TERM BENEFITS: OFFER LOYALTY IN RETURN FOR CONCESSIONS......Page 304
LEARN ALL THE TACTICS FOR STRETCHING THE DOLLAR: USE BOTH SALES AND PURCHASING TACTICS......Page 306
STRUCTURE SHORT-TERM FINANCIAL SUPPORT FROM INVESTORS: OBTAIN FINANCIAL BACKING WITH MINIMAL LOSS OF OWNERSHIP......Page 308
LOOK FOR PRIVATE-LABEL OR OEM AGREEMENTS TO BACK LOANS: AVOID DILUTING YOUR OWNERSHIP POSITION......Page 310
STEP 9C. DEVELOP A BUSINESS PLAN: CREATING HIGH VALUE FOR YOUR COMPANY......Page 314
UNDERSTAND THE THREE-YEAR PAYBACK: GENERATE FUNDS FOR THE RIGHT-SIZE PRODUCT LAUNCH......Page 316
DELIVER WHAT THE READER WANTS: EXPLAIN THREE POINTS TO ENTICE INVESTORS......Page 318
BUSINESS PLAN OUTLINE......Page 320
EXPLANATION OF BUSINESS PLAN ELEMENTS......Page 321
STEP 10C. SELL YOUR PRODUCT: MOTIVATE CUSTOMERS AND DISTRIBUTION......Page 335
CREATE SALES AND PROMOTIONAL MATERIAL: DISCOVER THE MESSAGE THAT SELLS......Page 337
STAGE YOUR SALES TO GENERATE MOMENTUM: FOCUS YOUR FIRST EFFORTS ON EASIER-TO-SELL CHANNELS......Page 339
DEVELOP AN ARSENAL OF PROMOTIONAL TACTICS: ENSURE YOUR EARLY SALES CUSTOMERS ENJOY SUCCESS......Page 342
FORGE ALLIANCES TO BUILD CREDIBILITY: SELECT TACTICS THAT WILL ENCOURAGE STEADY ACTIVITY......Page 344
Appendix A: THE GO-NO-GO DECISIONS......Page 348
EXPANDED 12-POINT GO-NO-GO DECISION MATRIX......Page 349
Appendix B: CHECKLISTS BEFORE STARTING THE INTRODUCTION PROCESS......Page 350
CHECKLIST 1: THE SUCCESS FACTORS FOR LICENSING......Page 351
CHECKLIST 2: THE SUCCESS FACTORS FOR TURBO-OUTSOURCING......Page 352
CHECKLIST 3: THE SUCCESS FACTORS FOR STARTING YOUR OWN COMPANY......Page 353
CHECKLIST 5: SALES AND MARKETING CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 354
CHECKLIST 6: ADMINISTRATIVE CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 355
CHECKLIST 7: MANUFACTURING CONSIDERATIONS FOR STARTING YOUR OWN COMPANY......Page 356
Appendix C: SAMPLE DOCUMENTS......Page 357
Appendix D:WEB ADDRESSES FOR INVENTOR STORIES......Page 370
GLOSSARY......Page 373
BOOKS, GENERAL......Page 380
CATALOGS......Page 381
FINANCING......Page 382
INVENTOR SITES......Page 383
MANUFACTURING......Page 384
OVERSEAS SOURCES......Page 385
PRESENTATIONS......Page 386
PROTOTYPES......Page 387
TOYS......Page 388
TV SHOPPING NETWORKS......Page 389
INDEX......Page 391