Tuesday, July 27, 2010
You Need More Than a Better Mousetrap
He didn't like it when I suggested that he get help from SCORE or from a Small Business Development Center. But this is exactly what he needs to do, if he wants free help to raise the capital he needs.
Does this sound like you? Does this sound familiar?
You may have a brilliant idea, but in the words of one of the original Mad Men, David Ogilvy, "It's not creative unless it sells." I've seen too many truly great ideas and great products fail. Only 10% of new products make it. So as hard-hearted as it sounds, I don't care how great your idea is, if it doesn't meet a real need, it will not sell.
Since the inventor wouldn't tell me what his invention was, and since I charge by the hour to consult, I have no idea if this particular gizmo does meet a need. But even if it does, the inventor will have to get it into stores or catalogs so that people can buy it. Or he will need to create a website and sell it directly online. There are many very inexpensive ways to do this. However, what you say to stores or to consumers about the true value of your product is what will get it into the hands of consumers. I'm not talking about the technological, gee-wiz stuff. I'm talking benefit.
But turning an idea into a success isn't just about benefits. You also need to know how much money it would take to manufacture your gizmo and how much money you can charge for it. Apple knows it can charge premium prices for its inventions. A certain segment of the marketplace will pay more for Apple's sleek, cool products. But not everyone will. Apple makes lots of money, but they don't have a huge market share. Truly, if you have a new invention, think "what will consumers pay for it?" What markup will stores put on it? How much money will I get from the wholesale price? Will this give me a decent profit margin? When will I break even? No investor or lender will give you money, unless you can answer such questions.
If you have questions about manufacturing and marketing your invention, contact me at: upstartwyn@gmail.com.
If you have stories about your successful invention, post it on this blog.
Friday, July 9, 2010
Inventions, Entrepreneurs and Success
I know that there are thousands of entrepreneur wannabes and inventive tinkerers out there with the big idea and the next great business. Some of you will fail because your ideas really aren't that great. Some will fail because you don't have a plan or funding. Some will fail because you just don't have the energy to take the idea to fruition. You'll let roadblocks get in the way.
But the entrepreneurs and inventors in this TV show didn't let any of that stop them. Their creations and ideas filled needs and resonated with the public. Take a look. You can watch it on HULU:
http://www.hulu.com/watch/46543/cnbc-originals-how-i-made-my-millions
If you need a business plan or some mentoring along the way, contact me at: upstartwyn@gmail.com. Visit my website: www.upstartbusinessplanning.com.
Friday, May 22, 2009
Homeland Security and the Squid
I think it's great that there is government grant money going to inventors and entrepreneurs. It's American inventiveness that keeps us going. But will the bureaucrats drag us down and make it too hard to commercialize and use the inventions?
To read the entire article, go to: http://online.wsj.com/article/SB124286185495041091.html.
Monday, May 11, 2009
Recessions and Invention
Deb Riechmann
Associated Press
WASHINGTON – Got a bright business idea? Take a number.
Americans haven't stopped dreaming up newfangled gizmos or sketching engineering marvels on the back of cocktail napkins. But tight credit and business cutbacks have slowed the pace of getting the latest U.S. innovations to market.
Venture capital investments have plummeted. Lenders aren't lining up to fund business startups. New patent applications are down at the U.S. Patent and Trademark Office, creating a budget crisis at the agency, which depends on money from fees to keep operating.
If patent fee revenue continues at its current rate, the office will end the budget year collecting roughly $100 million below projections.
That puts the patent office in a catch-22. After several years of hiring more than 1,200 patent examiners a year, the office has suspended hiring, trimmed overtime and made other cutbacks. This comes as the office and its 6,000 examiners are struggling to whittle down a backlog of 770,000 new, unexamined applications.
"Innovation is the way America generally gets out of downturns," said Robert Budens, president of the Patent Office Professional Association. The group represents 4,000 examiners and other patent professionals, many of whom worry the recession will mean layoffs before the end of the year.
"At the Patent Office, we're one of the key drivers of stimulating innovation and for us to get to the point where we might have to furlough or have a reduction in force would just be horrible," he said.
So far, companies that spend the most on innovation have resisted the temptation to raid their research and development budgets. They're opting to ride out the recession with an eye to future sales, according to Booz & Co., which surveys the world's 1,000 largest publicly traded, corporate research and development spenders.
Although those budgets often are set months in advance, recent data that Booz collected on about 400 of the companies shows that research spending rose 2 percent from the first quarter of 2008 to the fourth quarter.
"The recession has caused us to be very conservative in a lot of areas, but research and development is not one of them," said James Norrod, president and chief executive officer of Segway Inc., the Bedford, N.H.-based maker of two-wheeled, stand-up vehicles. "We think that R&D is really the life blood of the company. We haven't cut back. We have actually added people in that area."
Matthew Sampson, an intellectual property lawyer at McDonnell Boehnen Hulbert & Berghoff in Chicago, says business hasn't slowed yet, but that patent work usually lags during economic downturns.
"I'm actually a little bit nervous about next year," Sampson said.
Businesses, however, have begun cherry-picking the ideas they want to shepherd through the expensive patent process. Seed money to nurture innovation also is drying up.
Venture capitalists invested just $3 billion in the first quarter of the year – down 47 percent from the fourth quarter of 2008 and the lowest level since 1997, according to the National Venture Capital Association. Bank loans and "angel capital" – money that friends and families and wealthy individuals cough up to support innovation they personally believe in – also are contracting.
"If banks stop lending in general, lending for small, innovative technologies dries up completely," said Jere Glover, a Washington business attorney who directs the National Small Business Association'
Basement inventors are really feeling the pinch.
"A lot of independent inventors get their start by floating their expenses on charge cards, and of course charge card credit lines have been greatly restricted," said Ronald Riley, the man behind numerous patents including those related to the automated industrial monorail and the treadmill.
"For independent inventors, at least until they achieve some commercial success, the money for patenting comes out of discretionary income. It doesn't mean they're not inventing, it just means they're just not going to file until things improves," said Riley, founder of the Professional Inventors Alliance.
It costs roughly $10,000 to obtain and hold a patent, although fees vary depending on the type of application.
A $1,090 fee is paid when an application is filed and $1,510 more is due when a patent is granted. Maintenance fees of $980, $2,480 and $4,110, which maintain a patent holder's legal protection for the life ½ ½ years and 11 ½ years, 7 of a patent, are due at 3 years, respectively.
Some penny-pinching patent holders have stopped paying their maintenance fees, choosing to let their rights to a patent expire early on innovations not critical to profits down the road. In addition, fewer patent seekers are paying fees to obtain more extra time to respond to questions from the patent office.
Some companies are in such dire straits that innovation is just not an option for them, but more and more companies are recognizing how critical innovation is, said Scott Anthony, president of Innosight, a management and innovation consulting company in Watertown, Mass., and author of several books on the subject.
"Some people say `I cannot afford to innovate.' What they are really doing is sowing the seeds of their own destruction,
Anthony notes that many innovative companies were started during economic downturns.
Hewlett-Packard formed in a California garage at the end of the Great Depression. Digital Equipment was born during a recession in the 1950s. During an economic downturn in the 1970s, 23-year-old Carol Wior started a garment business with $77 and three sewing machines in her parents' garage.
Thirty-seven years later, the maker of the patented "Slimsuit" and her company's 200 employees in Bell Gardens, Calif., are working through the recession on a new undergarment and swimsuit concept. "I think you'd be a fool if you didn't tighten up a little bit," Wior said. "We're being more careful, but I'm not tightening up when it really comes to marketing and product development.
Sidebar:
Inventors Thomas Edison, left, and Charles Steinmetz work in Steinmetz's laboratory during the Great Depression. "Innovation is the way America generally gets out of downturns," says Robert Budens, president of the Patent Office Professional Association.
(Full-size photo)
(All photos)
Patent costs
It costs roughly $10,000 to obtain and hold a patent, although fees vary depending on the type of application and are adjusted downward for individual inventors, small business and nonprofits.
COMMENTS:
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Friday, April 3, 2009
Marketing Your Invention
Thursday, he wrote a great article.
Here's a link -- http://www.stamfordadvocate.com/localbusiness/ci_12050459
Here is a copy of the article:
Expert tells how to market inventions
STAFF WRITER
Inventors trying to market their creations should start by answering one question, said Wyn Lydecker, a marketing communications expert from Darien.
"What are your invention's main benefits?" she said Tuesday during a talk on entrepreneurial marketing at the monthly meeting of the Inventor's Association of Connecticut, held at Fairfield University. "You have to focus on that."
Lydecker, a former co-director of the Small Business Resource Center at Norwalk Community College, owns Upstart Business Planning in Darien and is on the board of advisers of Charter Private, a startup firm in New Jersey. She also was the managing director of Business Plans International in New York.
Lydecker, who has a master's in business administration from Wharton School of the University of Pennsylvania and has lectured at the University of Bridgeport, also teaches business planning for Darien Continuing Education.
Other queries need to be addressed once the perks -- such as safety, convenience or cost saving -- are identified, Lydecker said.
"How are you going to sell it, and where?" she said to about 15 inventors and marketers in attendance. "You also have to work out how much people will eventually pay for it."
Inventors may consider using e-mail or YouTube or creating a Web site to market their new idea. They also may go the more traditional route of networking, selling it through a catalog or crafting a sell sheet, Lydecker said.
The
"You want to attract attention," she said. "And don't forget your contact information."
It also is important to let manufacturers know where the invention will sell, said Mary Ellroy, the association's president emeritus and a toy inventor from Norwalk.
"When I go to companies with an idea, I tell them why Wal-Mart's going to like it," she said. "You may want to think about what stores want."
Inventors, facing increased scrutiny from angel investors because of the slowed economy, must be specific in describing their product's purpose when seeking grant money, said Merrie London, manager of Small Business Innovation Research with the Hartford-based Connecticut Center for Advanced Technology.
"The biggest mistake people make is they tell an agency what a great idea they have, and then try to shove it down their throats," she said.
Sunday, March 29, 2009
Marketing Your Invention
Tuesday, March 31st • 7PM
This is a free public meeting in which all inventors, tinkerers and "would-be" inventors are welcome.
Room 107 C in the DiMenna-Nyselius Library at Fairfield University
The meeting will feature Wyn Lydecker, a marketing communications expert, who will speak to the
group on how inventors can successfully market their inventions by using Entrepreneurial Marketing, wherein inventors concentrate on creating customer value rather focusing on the technical wonders of their inventions.
HOW TO SUCCESSFULLY MARKET YOUR INVENTION
Wyn Lydecker is a marketing communications expert and owner of Upstart Business Planning. She uses her 30 years of experience in marketing and entrepreneurial business planning to consult with business owners and craft clear, dynamic strategic plans and marketing documents. Her business plans answer the questions investors ask most. Her clients have raised between $35,000 and $9 million in capital. Her marketing communications materials have played instrumental roles in helping small and medium-size businesses boost awareness and sales. She holds an MBA from the Wharton School and a BA in Economics from the University of California at Santa Barbara. Learn more at Ms. Lydecker's Web site: www.upstartbusiness
Please contact Doug Lyon at (203)641-6293 for more information.
Thursday, February 28, 2008
Getting Gadgets On TV
A.J. Kubani gets his ideas from his own needs -- like the need for a portable, battery-powered light bulb that you can just stick on the wall. He also reads classified ads and searches in stores for unusual gadgets that he can license and promote. But the product still has to meet a need. It's funny how that is such an essential element for success.
He also says that it pays to advertise on boring TV shows and networks. That way, his ad stands out and grabs attention. Interesting point to ponder....
Tuesday, February 26, 2008
Commercialization Beats Innovation
No matter how you feel about the controversy, the lesson is important. Commercialization is key. Look at Google. The Google guys didn't invent paid search. They just capitalized on it better than the originator. Overture, now owned by Yahoo! originated paid search. Google had to pay Yahoo! a license fee, after being sued by Overture for patent infringement. (They settled the suit out of court.)
If you're an inventor or are working with an inventor, get yourself allied with good marketing people. Figure out how you'll take your great technology and commercialize it. And don't waste precious time. Bell beat Gray to the patent office by minutes.