To
deal effectively with a company interested in your idea, it helps to start by
understanding what companies look for in new product ideas.
Their
dream invention is one that gives them an enormous profit for no risk. They
know they are unlikely to find such an invention, but they will definitely want
ideas with as few costs and risks as possible. They will never look at your invention and say: ‘This is so good that we must do it, no matter what it costs
us!'
Before
risking any of their resources on an invention, they will want answers to key
questions. These include:
-
The product
Does
it fit in with our longer-term business plans?
How
much more development does it need?
Can it
be manufactured cost effectively?
-
The market
How
many units can we sell?
How
much market advantage will it give us?
How
much will it cost us to enter the market?
-
The intellectual property
How
valuable is the IP?
How
strong is the IP?
-
The cost
How
will the whole project be financed?
Will
the cost pose a significant risk to the business?
-
Risk
How
soon will the product go into profit?
How
long will that profit last?
What
if we say no to the invention but a competitor says yes?
Further
points for inventors to think about include:
-
Rejection of an idea does not
necessarily mean that the company thinks your idea will not succeed. It means
they think it is not right for them.
-
Do not expect the company to do
everything correctly.
Smaller companies in particular may
have relatively little experience of innovation.
- For that reason,
consider offering your own expertise or resources to the company if it helps
persuade them to license the invention from you.
