In popular mythology, there’s a fairy tale that goes like this: “Once upon a time, three college kids in cut-offs and sneakers came up with an “idea” (that “magic word”) and went after millions of dollars from venture capital and angel investors (all greedy to make a buck or get TV ratings). Shortly after securing the money their new company quickly became a “unicorn”, after which they sold it which enabled them to sail off into the sunset to an island where they spent the rest of their lives sipping on cocktails in glasses with little umbrellas.
However, reality being what it is, if that “ship” ever really existed, it has now sunk!! Today an investor will demand too much, too high of a return on their money and force the company to grow too fast, even if it drives the inventor into bankruptcy. It doesn’t matter how expensive his suit is, the shark will still eat you!
If you have the resources and the expertise to grow organically using your own funds, by all means go for it. Keep in mind that to go it alone, you need to be an expert in your idea (the product), and expert at manufacturing, at marketing and at business in general. It’s best when you can bring on a “real partner” (someone who’s going to roll up his or her shirtsleeves) to share in the costs, hard work and rewards without you having to sell your soul to an investor.
At this point, hiring good service providers can also help. You have already hired a registered patent attorney and probably even a design engineer. This is pretty normal. You can also contract out the manufacturing and fulfillment. Someone else will add their expertise to the project. You will have to pay for the services but you aren’t giving away ownership or leverage.
The other option for many inventors is licensing. You are basically renting the right for a company to use your patent. They make it, sell it and send you a check. For most inventors the only time you get to make a bank deposit is when you license the patent. As an organic start-up or any kind of start-up, most of your trips to the bank is to take money out to support your new startup.
Want more advice on how to successfully get your product to market? Follow Invent-America on social media and we will keep you informed on the common issues everyday inventors like yourself face. Check out below the other resources we recommend as well:
- Invent America radio is always looking for inventors to be on the show. It’s free for the American Inventor to join us. Just fill out the form on the website: www.Invent-America.com.
- Inventors (and your clients) need multiple service providers to get a product to market. One bad service provider can make the difference between success and failure. If you need access to high quality, vetted service providers, let me know. We have multiples in all categories.
- Join us at the monthly Inventors’ Roundtable meetings. There are 2 virtual meetings a month where inventors can meet and visit with other inventors from around the country: www.InventorsRoundtable.org. The meetings are free, and inventors learn a lot talking to other inventors.
- Follow me on TiKTok: https://www.tiktok.com/@theinventorlady
