The Usual Steps and Costs
So you have an idea for an invention or incorporating technology into a product. How do you produce and market it successfully? In simplest terms, the three steps are:
Below are some guidelines and direction.
Educate Yourself
First, educate yourself as much as possible and learn about the obstacles. Do the free stuff and take off the rose-colored glasses. Be realistic about the idea, technical requirements, its market potential, its demands on your life, your skills and temperament, and your financial capacity. Any weakness must be understood and compensated or you'd better move on to a better idea.
Begin with research on the Internet and in publications. Learn who the experts are in the field, the state-of-the-art, and existing related patents. Document your findings and your own ideas and work as you proceed. Bounce your idea off trusted friends. Will it work? Has it been done before? Does your idea have a market? What alternatives exist? (Yours had better have three advantages over competitors and no fatal flaws if it is to succeed.) Is it worth your time, energy, dedication and costs? What are you really good at? What else could you be doing with your energies and investment? Does your family fully support your plans considering the costs and risks?
One- or Two-Person Business
If you have a unique idea within your capabilities to produce, and intend to be a one- or two-person business, you can fairly easily figure the necessary steps and costs, start small, and grow as far as your lifestyle objective and finances allow. That may include a few thousand dollars to get started or obtain a patent, a few thousand more to advertise and begin production, and there you are. However, most people dramatically underestimate the real costs of startup, run out of money after $5,000 to $25,000, lack working capital to sustain and grow the business, misjudge the market, and lack the deep pockets for legal defense against imitators if they truly have valuable "intellectual property". Beyond a tiny market that no one else would bother, a business can easily require tens or hundreds of thousands of dollars.
Big Business
For business on a grander scale, you have some serious decisions to make, deserving of a commercialization plan which is preliminary to a business plan. The biggest decisions are whether to go forward at all - which requires ability to produce and sell AT A PROFIT - and if so, whether to do everything (production and sales to all market sectors) through your own company, or to sell limited or total rights to your product.
Do you have in mind just developing and patenting the idea and collecting royalties from one or several to whom you grant a license to produce and sell? This is probably the best alternative for the vast majority of inventive idea people if their humility allows them to realize they wouldn't be good or happy trying to raise big money, do paper and people work, and administer a sizeable organization. Managing a business doesn't usually allow significant time for creative invention and can be a real drag for a scientist or inventive type. In almost all cases, licensing to an established company is preferable to trying to start up a new company to commercialize the invention. Look for a licensee with a good reputation for integrity and honesty. Think about which established companies (by name) would specifically benefit from your invention and be a likely licensee.
If you want to grow a business based on your invention, it means getting into manufacturing, finding financing, developing sales and distribution, managing people and their expectations, dealing with government regulators, etc. There is much to consider including simultaneous:
Partner or Team
Does this fit you? Beyond a tiny family business, it is RARE that one person can handle all the above well, so think about partners who are good at marketing, raising money, and managing a business. Today, a growing business requires a team. One of the most important concepts to think about, accept and plan is partnering, or team building for success.