When inventors contact my company about Homework I really like to explain the reasoning having a simple example. Look at it this way, in case a manufacturer is about to decide to build up, manufacture, and market a whole new merchandise that could potentially cost $50,000 to $150,000 to create plus inventory costs, they might most certainly get their time to ensure that these are creating a good business decision in continuing to move forward using the product (i.e.: they have done their homework on the product). Therefore, you can sum up “due diligence” as the procedure of gathering all the details necessary to create a good business decision before you make the large financial expenditure. It might generally be assumed the more hours, effort and funds (i.e.: “risk”) that the company must spend to develop an invention, the better they will likely assess the potential license. Remember that even when something is apparently simple and easy low priced, the whole process of developing and manufacturing is rarely simple and easy inexpensive. Companies will evaluate such criteria as feedback from customers, list price points, unit cost to produce, competitive landscape, manufacturing feasibility, market opportunity, etc.
Option 1 – Manufacturing by yourself – If you are intending on visit the site, then yes you will need to perform homework. Essentially, you then become the company of the product and as a result you need to perform the due diligence on the invention exactly like other manufacturers would. The situation that we have realized is the fact that many inventors who opt to manufacture their very own inventions do little, if any marketing research, which is a big mistake.
Option 2 – Licensing for Royalties – if you are planning on licensing for royalties, then I believe you may minimize your due diligence efforts, because ahead of any organization licensing your invention, they will likely perform their own personal research. In case you are employing a company such as Invention Home, the expenses to showcase your invention to companies might be minimal – therefore it might cost you more to actually perform due diligence than it would to simply InvenitHelp the invention to companies (which, is ultimately your best method of research anyway). Remember, you should have taken the time to do your basic consumer research plus a patent search earlier in the process to be confident that your product is worth pursuing from the beginning (i.e.: this product is not really already available on the market and you will find a demand).
Let me summarize. If you are intending on investing a great deal of money on your invention, then it is best to analyze the means first to make sure it’s worth pursuing; however, whenever you can actively advertise your invention to companies with minimal cost, you can be assured that the interested company will perform their own homework (not depend on yours). Note: it is always useful to have marketing research information available as you discuss read this article with prospective companies; however, it is really not always easy to obtain these details so you should balance the effort and cost of gathering the details with the real need of having it.
Also i gives you some due diligence tips.As discussed, the thought of marketing homework would be to gain as much information as you can to produce a well-informed decision on making an investment in any invention. Within a perfect world, we may supply the appropriate information about sales projections, retail pricing, marketing costs, manufacturing setup and unit costs, competitive analysis, market demand, etc. However, this data is not always an easy task to come by.
When you are not in a position to pay an expert firm to complete imp source, it is easy to carry out the research by yourself; however, you must know that research must be interpreted and employed for decision-making and alone, they have no value. It is actually the things you do with the details that matters. Note: I would personally recommend that you just do NOT PURCHASE “market research” from an Invention Promotion company. Often sold like a “first step” (they’ll usually approach you again with the expensive “marketing” package), the details are largely useless as it is not specific research on your own invention. Rather, it really is off-the-shelf “canned” industry statistics, which can possibly not help you make a well informed decision.