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When you have a new idea for a product or service, there are 5 crucial
actions you must take to assure your success. Getting a patent is not one of
them. Typically, 70 percent of patents filed are granted. But, only an
estimated 2-3% actually makes money. Many inventors and entrepreneurs whose
products failed didn't follow these 5 actions.
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You need to think of yourself as more than just an idea person. Think of
yourself as a product developer and marketer. To improve your chances for
success, perform the following actions for your idea before filing a patent.
I ve used the acronym IDEAS to guide you.
The 5 Actions
I - Inventor's Notebook:
Protect your idea by documenting all
your ideas and plans in an Inventor s Notebook. In the United States it s
the first person who documents their idea that gets patent rights rather
than the first to file a patent. Use a notebook with a stitched binding and
numbered pages. When documenting your idea, get a witness, who has no
financial interest in your idea, to sign and date the pages.
D - Determine Competition:
Who is your competition? Find out what they re
doing and develop your product with benefits and features that are better
than the competition. For example, if your product is meant to save time, it
must save more time than other products. If you have a completely new idea,
it must perform better than the product that you re trying to replace. While
we often like to think there is no competition, there are possible similar
products. For example, you might have a new type of toothbrush that is
unique. But people might be satisfied with their simple $2 toothbrush or
Listerine strips.
E - Evaluate for Marketability:
Before you invest in a patent or go into
production, evaluate your product idea for marketability. Your product must
solve a problem or satisfy a need or want. It must also, be better than the
competition. Ask yourself if there are large numbers of people who would buy
your product other than your friends and family? Also, visualize your
product in a finished state and sketch an advertisement. What are the
compelling benefits to excite people to buy your product? If none, why build
the product?
A - Analyze for Profit Potential:
How much are people willing to spend for
your product versus your costs and expenses? How many will you sell? What
are the unit costs and expenses related to developing and marketing your
product?
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S - Select a Target Market:
Other than everyone can you identify a group of
consumers or businesses who will benefit most from your product? You can
earn a lot of money by serving a particular group of people. Find a segment
of people who have the greatest needs and wants for your product. You must
tailor your product and marketing messages to a specific market group based
on consumer demographics, business type, or location. You can select a
market based on benefits sought such as safety, saving money, improving
health or others.
Conclusion
Often people rush to get a patent, prototype, and go into
production only to find the product is not selling. They later find that
there is really no need in the market for the product. Or, the product
benefits don t outweigh the selling price. Once you perform the above IDEAS
and are satisfied with the results, then consider filing a patent, creating
a prototype, and going into production. By getting a patent too early,
inventors find themselves committed down a path and find it difficult to
change course when new knowledge of the market is gained. Or, by spending
all your money on patents and production, there s nothing left to perform
the necessary marketing.
Next Step
This article offers you an overview of the roadmap from idea to
market. To learn how to apply these principals to your ideas, I'll take you
step-by-step in my book Product Idea to Product Success ($24.95, ISBN
0-9725521-0-3, 320 pages, January 2004). For details, go to the book
overview, table of contents, and ordering information pages.
About the Author
Matthew Yubas is a Certified Professional Marketing
Consultant for the Small Business Development and International Trade
Center. He has developed products for 20 years as an engineer, product
manager, and independent consultant for startups, small business, and
Fortune 500 companies. Articles and information about his new book,
Product Idea to Product Success, are available at www.Product-Coach.com.
December 2005
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