Do you have a great idea but cannot convert that idea into a profitable business? Don’t worry; this article will take you through the step-by-step process to reach investors and companies to convert your idea into a consumable product or service.
Having an idea is the starting point, but there are a lot more things to do when you want to convert it into a business. Here are some useful tips to help you take your innovation to the next level.
Take Your Innovative Idea to the Next Level
Although you will learn about the step-by-step process to scale your ideas to the next level, you can learn more from the davison inventions YouTube Channel.
1. Research is Crucial
Research is the most important step that you should do before investing money in your idea. Gather the following information to take your innovation to the next level.
- Market Demand: It does not matter how great your idea is; you cannot make money if there is no market demand. You should conduct a market survey to know whether your idea is solving a real problem and are people ready to pay for it.
- Competitor Analysis: Maybe you had invented this idea long before but never implemented it. So, you should first check whether there are any existing products based on your idea. You can also check the US Patent and Trademark official website whether there is an existing product. If there are no products, you can file for a patent, but you need to have a plan of action.
Planning is essential no matter how big, or small your idea is. Even if you don’t have formed the idea clearly, planning will help you get started. You should include the development of a product or service. What marketing strategy will you follow, etc.
So, it’s essential to create a plan and file for a patent if applicable. If your idea already has an existing product, you can still convert that idea into a business if there is no infringement issue. So, you should know this from a legal advisor or experienced person who knows about patent infringement.
3. Come With Your Prototype
Once you have the market data and business plan, you need to develop a prototype and get primary feedback. This phase will help you get suggestions for improvements, and you may also get the opportunity to find investors.
Also, you can get feedback from your friends and family. If you get better feedback, prepare a pitch for your prototype and reach out to investors with your presentation. You can consult a business consultant or non-profit organization who can help you find investors or companies.
4. Negotiate with Investors/ Companies
You need some negotiation skills to deal with investors or companies. Here are three things to keep in mind before you go for negotiation.
- Real Expectation: First of all, you should set a practical expectation for your idea. You shouldn’t ask for millions of dollars to sell your idea.
- Negotiate High Upfront Payment: While negotiating, there are three ways you can receive money; upfront cash, annual premium, and royalty payment. So, try to negotiate all these payments as high as possible. You need to ensure that you set your expectations real.
- Exclusive Rights: Some companies take the exclusive rights for manufacturing your product. So, you can negotiate with the company to keep your name on the exclusive right.
Remember, there are no clear rules and regulations for negotiation; you are entering into a mutual agreement. So, it’s purely dependent on your skill, and you should make a fair deal with the investor/company.
I hope the above information has helped you learn the step-by-step process of turning your innovative idea into a profitable business. If you don’t have money to convert the idea into a business, you can sell your invention to companies or investors by following the above steps. If you have any queries, please drop them in the comments section.