Inventing Business

Entrepreneur,  April, 2001  by Don Dedelak

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Miller's next criterion is that the product has to be the best of its kind by a significant degree. Retailers and distributors are reluctant to carry products from inventors or small businesses not only because of the work involved in adding a new vendor, but also because small companies are less likely to stay in business. They do, however, like to carry new products that are superior to the competition. If your product immediately stands out to consumers, retailers and distributors, they're much more likely to consider it the best product on the market.

Miller's final criterion for prospective products is this: "There [must be] nothing I can do to break it. We offer a lifetime guarantee, and I won't sell a product if I can figure out how to break it." Product quality may be important to consumers, but it's even more important to retailers. Many large retailers fear that if they buy from a small business, they'll get stuck with product returns due to quality problems if the supplier goes out of business. Retailers will feel more comfortable about carrying your product if you prove to them it simply can't be broken.

Chances are, there's someone out there willing to license your innovative idea. Unfortunately for inventors, it's not immediately obvious just who that person might be. You may approach 100 people before finally finding the right one. Inventors must be both persistent and innovative when looking for the right licensing candidate. So take every approach possible and don't give up. Remember, the right contact might just be the next person you talk to.

Don Debelak is a new-business marketing consultant and the author of Think Big: Make Millions from Your Ideas (Entrepreneur Press).

ELECTPIC AVENUE

No takers on your tech invention? Try intellectual property management firms.

Inventors frequently search for established businesses to help them License their products. Generally, though, established licensors are hard to find and very selective about the products they handle. A better approach is to check out intellectual property management firms, which license products, especially tech products with huge sates potential. To get more information about licensing agents and intellectual property management agents, check out the Licensing Executives Society. This trade association publishes a magazine and a newsletter in addition to several publications related to licensing agreements. For details, call (703) 836-3106 or log on to www.usa-canada.les.org.

PAINLESS PATENTS

Save money with the latest patent software.

Patent attorneys are expensive--it's not unusual for the patent process to cost inventors $5,000 to $15,000. If those figures seem a little sky-high, consider PatentWizard software from PatentWizard Inc. The program, which can be ordered at www.patentwizard.com or www.patentcafe.com, guides inventors through a series of questions and then produces a provisional patent application that can be submitted to the U.S. Patent and Trademark Office. PatentWizard costs $249 (street) and allows you to prepare your patent application in less than a week. Applying for a provisional patent is an ideal, low-cost toot for those who want to do more market research on a product yet be able to advertise that the idea is patent-pending.