Solve-It! Marketing Co. - Inventor Newsletter

Most people have thought about it. Fewer have pursued it. But make no mistake about it, the idea of starting one's own business or inventing a product everyone will buy and making millions of dollars is very much a part of the American dream for a lot of us. God bless America!

But most new product introductions will fail - why? Because the odds are stacked against succeeding. But that's the way it has to be, the marketplace will naturally sift out the vast majority of new products and allow only a relative few (the best?) to pass through into national, perhaps international distribution.

And to compound the problem, there may be many large, well financed companies attempting to launch new products into the same marketplace you are. A market where they may already have a foot hold and track record. So how in the name of heaven can you possibly succeed?

The answer is you need (1) luck, (2) good timing, (3) to do your homework thoroughly, (4) to make good contacts along the way, (5) adequate financing and (6) persistence.

1) Luck:

Don't for a second dismiss the importance of this ingredient simply because you can't control it, can't evoke it and may not be aware when it is present. Nevertheless, if all the other ingredients are present and lady luck isn't smiling on you, your chance for success is diminished. So how should you proceed? Assume luck will be with you and be thorough in your preparation. For most people, the harder they work, the luckier they get.

2) Timing:

Here is another ingredient that is not completely within your control but nevertheless plays an important role in the success or failure of a product. An inventor must be alert to trends and developments in his market sector and be aware of the impact they might have on his/her item and the timing of its introduction.

3) Homework:

Research is the key here. Thorough, well thought out, well planned market research can save a lot of time and money.

*A)	Before developing a product, you must determine if consumers will want a solution to the problem you perceive. If so, what features and benefits would it have?

*B)	What would they be willing to pay for it?

C)	What will it cost to manufacture?

D)	How will it be distributed?

E)	How much of an investment will be required?

F)	How many units will need to be sold in order to recoup your investment?

*	The data gathered to answer these questions must come from a statistically significant number of potential consumers for the product, not from a handful of friends and relatives.

4) Contacts:

You might be surprised to find out how many products got the break they needed due to a contact that was made along the way. Sometimes it is financial help (an angel) or marketing help where someone can open some doors for you. Treat everyone you meet as an important resource as you try to develop your project. Who knows, even a casual contact on whom you've made a good impression may provide some help when you need it most.

5) Financing:

Sure there are some products that come into being on a shoestring, seem to catch on quickly and through the greatest good fortune (luck) somehow, someway get produced, packaged and into national distribution. Some. But for every one of those success stories there are literally thousands of failures. Designing, engineering, protecting, manufacturing, packaging and distributing cost money. Somebody has to put it up and if you intend to manufacture your brainchild, the money will have to come from you or your investors. The point to be stressed here is that you must realistically assess how much money you will need in order to get the product through all its phases (a.k.a. part of the business plan) and prepare to provide that money.

6) Persistence:

Once you have done your homework thoroughly and know in your heart of hearts that your product will sell well if given a chance, you must be persistent. This is not blind faith we're talking about but a persistence grounded in knowledge and conviction. If you've done your homework thoroughly, you will know your product can succeed and if some people can't see it, that shouldn't change your opinion at all.

In future issues, we'll explore in more detail the importance of good market research in the development of a product, how to go about establishing distribution for a new item and the alternative of licensing your idea versus manufacturing it yourself.