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deal effectively with a company interested in your idea, it helps to start by
understanding what companies look for in new product ideas.
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
risking any of their resources on an invention, they will want answers to key
questions. These include:
it fit in with our longer-term business plans?
much more development does it need?
be manufactured cost effectively?
many units can we sell?
much market advantage will it give us?
much will it cost us to enter the market?
The intellectual property
valuable is the IP?
strong is the IP?
will the whole project be financed?
the cost pose a significant risk to the business?
soon will the product go into profit?
long will that profit last?
if we say no to the invention but a competitor says yes?
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
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.