As an inventor company to contact my due diligence I like the concept explained with a simple example. Imagine if in this way, if a manufacturer is always willing to deciding on the development, manufacture and market a new product that would potentially produce $ 50,000 to $ 150,000 to plus storage costs, they certainly take their time to make sure might cost, that they are making progress a good business decision with the product (ie: they have done their homework onProduct). Therefore, you can take "due diligence" as the process of collecting all the necessary information to make a good business decision to make before the big financial burden. Generally it can be assumed that the more time, effort and money (for example, "risk") that have to spend a company to develop an invention, the greater the potential will evaluate license. Note that even if a product appears to be simple and inexpensive, the process of development and production rarelysimple and inexpensive. The companies will evaluate criteria such as customer feedback, suggested retail price points that make the cost per unit, competitive landscape, manufacturability, market opportunities, etc.
Inventors often wonder if they need to perform due diligence on their invention.
As mentioned earlier, this will depend on the chosen option to acquire your product on the market.
Option 1 - Manufacturing on your own - If you plan on producing and marketingthe invention on their own, then yes, you must perform the due diligence. In essence, you are the manufacturer of the product and as a result, you should lead the due diligence on your invention, just like other manufacturers would. The problem that I have found is that many inventors who choose to do their own inventions produce little, if marketing due diligence, a big mistake.
Option 2 - Licensing for Royalties - if you plan on licensing forLicense fees, then I think you can minimize your due diligence efforts, as against any company that licenses will be granted for your invention, they lead their own due diligence. If you have a company like Home Invention, the cost of your invention to market, companies will be minimal - therefore you have cost them more effectively lead the due diligence as it would only sell the invention to companies could (which, ultimately, the best form of due diligence anyway). Remembershould be the time to have your basic research and patent research not previously taken in the process to be sure that your product is worth pursuing in the first place (ie: the product is not already on the market and there is a demand).
Let me sum up. Analyze persecuted If you plan on investing a large amount of money for your invention, then you always have the opportunity to first make sure that it worth to be, but if you actively market your invention to companies withminimal cost, you can be sure that any interested company their own due diligence to be done (not) trust with you. Note: It is always helpful if we are marketing due diligence information as you can about your invention with potential business opportunity, but it is not always easy to obtain this information so that you the trouble and expense of obtaining information with the real need to balance it.
I will also give you some due diligencetips.As discussed the idea of marketing due diligence is to gather as much information as possible to make an informed decision about investing in an invention. In a perfect world we would all relevant information on sales projections, retail, marketing, manufacturing and installation of unit costs, competitive analysis, market demand, etc. However, this information is not always easy to get.
If you are unable to pay, a professional firmReview your marketing, it is possible to carry out the research on your own, but you must understand that research is interpreted and used for decision making and on its own, it has no value. It is what one do with the information about what to get. Note: I would recommend that you "DO NOT BUY Market Research" from an invention promotion company. Often called the "first step" sold (they will usually approach you again with an expensive "marketing" package), theInformation is largely useless because it is not specific research on your invention. Rather, it is off-the-shelf "canned" industry statistics, which do not necessarily help you make an informed decision.
Before we get to the "tips", let me clarify that "due diligence" may come under different names, but basically all mean the same thing. Some of the concepts I've seen to describe the diligence process are:
· Due Diligence
· MarketingEvaluation
· Commercial Potential
· Invention saleability
· Profitably Marketable
· Market Research
· Invention Assessment
Each of these terms is, in fact, based on research to assess the likelihood of an invention marketability and profitability. The question of whether your invention will never be able to sell well known with certainty, but some steps can help you better understand, execute the likelihood of success.
Even if you plan toProduction of your invention on your own, you should consider marketing conduct due diligence on your product. If you plan on licensing your invention for royalties to the company that licenses should carry out your invention for this research.
Some suggestions for the marketing of due diligence are listed below.
1. Questions and answers to some basic questions
- If your invention is original or has someone else already come with the invention? Hopefully you have already answeredthis question in the research. If not, check trade directories or the Internet.
- Is your invention a solution to a problem? If not, why do you think of selling it?
- Is your invention really solve the problem?
- Is your invention on the market? If so, what your invention offer over the other?
- How many competing products and competitors, you can on the market?
- What is the range of prices for these products? Can your product falls within this area?Do not forget, perhaps in the profit and wholesale prices and license fees factor, if at all.
- Can you position your invention as a better product?
2. List the advantages and disadvantages that affect how your invention and sell assessed objectively List
- Question - Is there a demand for your invention?
- Market - there is a market for your invention, and if so, what is the size of the market?
- Production Capabilities - is it easy or difficult to produce yourInvention?
- Production costs - you get accurate manufacturing costs (both per unit and setup / tools)?
- Distribution capabilities - is it easy or difficult to distribute or sell your invention?
- Advanced functions - your invention offer significant improvements over other similar products (speed, size, weight, ease of use)?
- Retail Price - you have a price point advantage or disadvantage?
- Life - your invention will last longer than othersProducts?
- Performance is - your invention perform better than other products (including better, faster performance, less noise, smell better, taste, see or feel)?
- Market Barriers - is it hard or easy your market?
- Regulations and laws - is your invention require specific regulatory requirements or there are special laws must be followed (eg FDA approved)
3. Get advice or suggestions from others (you) think of confidentiality
- Target Professionals /Expert in this area.
- Ask for feedback and advice.
- Speak with marketing professionals.
- Ask seller in this area.
- Ask people you know in this area.
- Talk to trust with close friends and family members whom you.
- Ask for input on the invention, such as functions, services, prices, and if they buy it.
During the due diligence stage, existing production have the advantage that they have the ability to talk with their customers (retailBuyers, wholesalers, etc.). In my experience, it is necessary one of the most important factors is that a company, whether its existing customers would buy the product. If I was an invention, consider a company in licensing (assuming they could) they produce at the right price, there is a very high probability that they would license the product if one of their top customers agreed in order to sell it.
Whether a retail buyer is interested in purchasing a product, a driving force forCompany taking into account product licenses. I have many scenarios where you have a business interest in an invention, but they ultimately decided to pass on the idea, because) their customers (retailers of any interest in the product show times. Conversely, I've seen companies with little interest in an idea directly to a new product, if a retailer expresses interest in her.
