It's a mistaken belief that a great product idea necessarily translates into a great product. Be it a minor modification to an existing product or an entirely new product idea, it has to be sold well for it to succeed. Here are a few basic steps to help you sell a product idea.
Planning and Approach
Check your idea for originality. Market research and patent searches are handy tools for this type of research.
Determine the profitability of the idea. You may have a great idea but it should also translate into a profitable business for the prospective buyer.
Protect your idea by patenting it or at least filing for a patent. It not only makes the idea attractive to prospective buyers, but also safeguards it from being copied.
Make a working prototype of your product idea to give the prospective buyer a complete feel for the product.
Find the right people to whom you can sell your idea.
Present your product idea well.
Don't limit yourself to only one prospective buyer. Approaching more than one buyer enables you to get the best price for your idea.
Finding the Right Prospective Buyers
Know your product's market and approach buyers in that sector.
Find prospective buyers through trade shows, industry associations, databases and advertisements.
Build a website and have a page dedicated to your product idea. Do not reveal too much detail. The website should be easy to navigate and approachable. Make sure you include your contact information.
Contact invention promotion firms to help find the right prospective buyer.
Investigate prospective buyers to determine their financial credibility and product development capabilities.
Presenting Your Idea to a Prospective Buyer
Treat the presentation like a business plan. Take your buyers through every stage of developing the idea into a product.
Make a working prototype complete with a sample package design. Most buyers prefer having a complete feel for a product before investing in it.
Use accurate market research reports, manufacturing cost estimations, distribution avenues and sales projections to enhance your product idea's credibility.
Study your potential buyer well. Understand their history, products and revenue models and explain how your product can fit in.
Show the profit potential of your product. No matter how good your product, most companies will be interested only if they see a profit-making product.
- Do not reveal too much about your product idea too soon. Make sure the buyer is interested.
- Seek professional help with issues such as patenting, research and finding the right buyers for your idea.
- Insist on a signed Non-Disclosure Agreement to protect yourself. Not all prospective buyers will agree to sign Non-Disclosure Agreements, making a patent all the more critical to your idea.
- Seek the help of an attorney during the paperwork to avoid any legal complications or oversights.
- Hiring an agent to market your idea to various companies can also be useful and worth the investment.