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Practical Advice & Links
To Help You Launch Your Idea

     Okay, you have the next greatest idea since sliced bread. It’ll make you a million, pay for your kids’ college and put you on Easy Street. But ... you’ve heard that patents cost thousands of dollars, that more than 90% of patented products never make it to market, that 50% of new businesses fail.

     At the same time, wonderful new products come out and great new companies start every day. Small business is the engine that keeps our economy running. The trick is to keep yourself on the right side of the fence.

     How do you do even your odds? By being careful, thorough, and not letting your emotions run away with you.  Answer the following questions and you are on your way.  If you're riding high on your idea and don't want to think about these concerns, if you find them to be a real downer, watch out.  Now is when you need to put your passion aside and take a critical look at your idea.  If entrepreneurship is right for you, bring back that passion and go for it.  If not, keep the passion bottled up and start looking for a company you would like to license to.  Evaluate your target companies thoroughly, uncork that passion for your presentation, and go for the royalties.  

Ruthlessly evaluate your product:  will people buy it?  can it turn a profit?
(While margins differ by industry, a rule of thumb to get you started is that materials should not exceed 10% of the retail cost.  Wholesale is generally 50% of retail.  You may pay 12-20% of your wholesale price to a sales representative, 20% in materials and manufacturing, perhaps 10% in packaging, leaving you with 50%, or $2.50 for a product that retails at $10, to promote your product, run your business and profit.)

Can you finance your venture?
(Research and development will cost you hundreds of hours and more dollars; prototypes and molds can be very costly.   Introducing a new product can cost a minimum of $20,000 per year for a couple years.   A small display ad in a local publication may run $1,000, or $5,000 in a national publication.  A trade show or consumer fair can run $1-4,000 to get in the door.  You may have to give up a salary and benefits while paying the standard start-up costs for any business.)

Do you have the time?
(The "Rule of Seven" states that a customer must be exposed to a product 7 times before he is ready to buy.  Buyers and Sales Reps may want to see you at an annual trade show two - three times before they will buy from you.  Can you make it through three or more years without taking an income from your business?)

Patents, trademarks and copyrights are like a "No Trespassing" sign: they don’t protect your Intellectual Property (IP), their enforcement does.
(You are responsible for enforcement, and that costs money.)

Learn how to do your own research, and bring your findings to a professional. 
(The links below will help to get you started.)

Get the best protection you can that is reasonable for your idea.
(Some great products don’t warrant protection, some businesses would be gone without it.)

Use the best IP attorney you can find in your field.

Make sure you really want the life of an entrepreneur.
(Long hours, great risk, no paid vacations or holidays, no salary or benefits, often isolated working conditions, being your own boss, building a business, and a chance at the proverbial pot o' gold at the end of the rainbow.)

If it sounds too good to be true, it probably is.
(If they want money up front, watch out!  If they try to be your friend and ask you to tell them about your idea, don't.)

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