June 2009
Inventors solve problems. What kind of problem do you want to solve?
You might decide to solve a technical problem. The benefit of your better mousetrap might be that it traps every mouse in the house overnight. You would be pleasantly surprised if the world beat a path to your door, but your goal is to trap mice.
Or you might decide to solve a financial problem, by inventing a machine that moves money from the market to you. Your mousetrap is an important, novel, and personalizing part of that machine. But other parts are important too, such as those that help you replicate, package, communicate, distribute, and sell your mousetrap to the world. Mousetraps vary in design and effectiveness; so do money moving machines. This month the Indiana Inventors Association met to discuss the advantages and disadvantages of some parts that you can combine with your mousetrap to build your money moving machine.
Who has the money you want?
Choosing to solve an industrial problem can make the rest of your work easier. An industrial, more than an individual, consumer is likely to recognize the value of a good technical invention. So a money moving machine (focused on manufacturing and distribution) for an industrial consumer is simpler than for an individual consumer. You can develop an entire money moving machine, or you might opt for plug-and-play. Licensing your technical invention to a company lets you plug it into that company’s established money moving machine. You get less profit, but you don’t have to develop and use a money moving machine.
How can you tell the world about your technical invention?
A licensee can be your spokesman. But first, you need to get a licensee. Contact companies that sell a product similar to yours. If they are not interested in licensing your technical invention, contact their competitors, their manufacturers, their suppliers, etc. If you can’t walk in through the door, climb in through a window. That’s what inventors do. Two tools can help you persuade a company to license your technical invention:
As with any invention, seeing your money moving invention will help you decide if it is likely to work. SCORE can help you develop a business plan that will show you what your money moving machine looks like. Identify your product in detail, and who will make, package, distribute, market, and sell it. Prepare your budget and an appropriate timeline. Answer questions such as:
You might decide to solve a technical problem. The benefit of your better mousetrap might be that it traps every mouse in the house overnight. You would be pleasantly surprised if the world beat a path to your door, but your goal is to trap mice.
Or you might decide to solve a financial problem, by inventing a machine that moves money from the market to you. Your mousetrap is an important, novel, and personalizing part of that machine. But other parts are important too, such as those that help you replicate, package, communicate, distribute, and sell your mousetrap to the world. Mousetraps vary in design and effectiveness; so do money moving machines. This month the Indiana Inventors Association met to discuss the advantages and disadvantages of some parts that you can combine with your mousetrap to build your money moving machine.
Who has the money you want?
Choosing to solve an industrial problem can make the rest of your work easier. An industrial, more than an individual, consumer is likely to recognize the value of a good technical invention. So a money moving machine (focused on manufacturing and distribution) for an industrial consumer is simpler than for an individual consumer. You can develop an entire money moving machine, or you might opt for plug-and-play. Licensing your technical invention to a company lets you plug it into that company’s established money moving machine. You get less profit, but you don’t have to develop and use a money moving machine.
How can you tell the world about your technical invention?
A licensee can be your spokesman. But first, you need to get a licensee. Contact companies that sell a product similar to yours. If they are not interested in licensing your technical invention, contact their competitors, their manufacturers, their suppliers, etc. If you can’t walk in through the door, climb in through a window. That’s what inventors do. Two tools can help you persuade a company to license your technical invention:
- Product sales sheet One 8.5x11” piece of paper (usually one page) that displays:
- a good picture or drawing of your invention
- a big one-sentence benefit statement (more benefit = more persuasion). This benefit is a solution to a problem, not your invention itself.
- Ex. New mousetrap catches every mouse in the house overnight.
- maybe a statement of several sub-benefits, in smaller font.
- Ex. Competitive advantage: why a consumer would buy this, instead of a competing, product.
- Ex. Cross-selling: why selling this product will increase sales of the licensee’s products.
- a notice of patent pending (if you filed a patent application)
- your contact information
- Prototype of your invention Seeing is believing. Help your potential licensee imagine sales within six months by showing it your product. For a first meeting with a potential licensee, your prototype’s appearance is often more important than its function. If the company is interested, it will ask you for a functional prototype.
As with any invention, seeing your money moving invention will help you decide if it is likely to work. SCORE can help you develop a business plan that will show you what your money moving machine looks like. Identify your product in detail, and who will make, package, distribute, market, and sell it. Prepare your budget and an appropriate timeline. Answer questions such as:
- Who will your customers be? How many do you need to make a profit?
- What do they want? If they want a product that lasts only a few years, don’t manufacture an expensive product that will last a lifetime.
- What benefits can you provide to them?
- What will they pay to acquire those benefits?
- How can you reach your customers? Advertising simple inventions in small, specialty magazines can be effective.