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Finished Prototype - How to land an Investor?
by SYAWEDIS » Thu Mar 31, 2011 11:13 am
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
Hello Everyone,
I am new to the site, and hoping to find some helpful information for my journey ahead.
I've just completed a Prototype of my invention, and I'm looking for some advice on the next step. I want to avoid getting a Patent (mostly because they are so expensive) and possibly get a Trademark instead to protect a catchy name for the product. What would you guys suggest?
Also, my next obstacle is going to be Funding. I want to do some targeted market research, so I can have some concrete numbers to use when talking to a potential investor. Is there a FREE source online that people use for market research? Does anyone happen to know how much money the Kitchen Utensil Market makes every year, or where to find that information for FREE?
I'm also curious, what is the "norm" for investor / inventor business structure? Does it normally end up 50 / 50? Does the inventor normally work a salary in to the deal? Do you have any general TIPS on landing the Investor?
Finally, getting the product to Market. Do most inventors hire a Marketing and Sales team, and what is the "norm" for that business structure? I was thinking of 20% on every sale, would that be fair?
Thanks for your time.
Nathan
I am new to the site, and hoping to find some helpful information for my journey ahead.
I've just completed a Prototype of my invention, and I'm looking for some advice on the next step. I want to avoid getting a Patent (mostly because they are so expensive) and possibly get a Trademark instead to protect a catchy name for the product. What would you guys suggest?
Also, my next obstacle is going to be Funding. I want to do some targeted market research, so I can have some concrete numbers to use when talking to a potential investor. Is there a FREE source online that people use for market research? Does anyone happen to know how much money the Kitchen Utensil Market makes every year, or where to find that information for FREE?
I'm also curious, what is the "norm" for investor / inventor business structure? Does it normally end up 50 / 50? Does the inventor normally work a salary in to the deal? Do you have any general TIPS on landing the Investor?
Finally, getting the product to Market. Do most inventors hire a Marketing and Sales team, and what is the "norm" for that business structure? I was thinking of 20% on every sale, would that be fair?
Thanks for your time.
Nathan
Re: Finished Prototype - How to land an Investor?
by SYAWEDIS » Mon Apr 11, 2011 9:21 am
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
My biggest obstacle is finding an investor. It's not an enourmous amount I'm looking for, $13,000 will get the kick start I need, and will be self sufficient after that.
If anyone has any insight or tips how to land such an investor, and perhaps what kind of terms are fair, it would be much appreciated!
Thanks,
Nathan
If anyone has any insight or tips how to land such an investor, and perhaps what kind of terms are fair, it would be much appreciated!
Thanks,
Nathan
Re: Finished Prototype - How to land an Investor?
by Work2XL » Thu May 19, 2011 2:08 pm
-
Work2XL - Blue Belt
- Posts: 478
- Joined: Tue Apr 24, 2007 7:56 pm
- Location: Denver
Nathan,
That is a common question asked here. For the amount of money you are asking for, the most obvious answer is the three "F's". Friends, Family, and Fools. I'm guessing since you are here asking, those are not an option. Depending on where you live, there are micro lenders around that you can find through the SBA. Personal loans, and several online peer to peer sites where many people can donate a little money. I don't have any experience with the peer to peer and with your product not being patented, you may not want to go that route. One good source here is Roger Brown. Your product falls in his niche.
The biggest question is why wouldn't you license your product. Have you researched what it would take to manufacture, distribute, advertise a product? If any one system fails, your company fails. Licensing is by far the best route, if you don't have the capital to support all of these systems.
Randy
That is a common question asked here. For the amount of money you are asking for, the most obvious answer is the three "F's". Friends, Family, and Fools. I'm guessing since you are here asking, those are not an option. Depending on where you live, there are micro lenders around that you can find through the SBA. Personal loans, and several online peer to peer sites where many people can donate a little money. I don't have any experience with the peer to peer and with your product not being patented, you may not want to go that route. One good source here is Roger Brown. Your product falls in his niche.
The biggest question is why wouldn't you license your product. Have you researched what it would take to manufacture, distribute, advertise a product? If any one system fails, your company fails. Licensing is by far the best route, if you don't have the capital to support all of these systems.
Randy
Re: Finished Prototype - How to land an Investor?
by SYAWEDIS » Sun May 22, 2011 3:01 pm
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
Hi Work,
Thanks for the reply.
The 3 F's are not really an option. None of the people I know have money to invest, even if it's a small amount.
Do you know of any micro lenders who live in Canada?
I never really looked in to Licensing. I will have to do some research, but it's certainly an avenue to explore.
Thanks for the reply.
The 3 F's are not really an option. None of the people I know have money to invest, even if it's a small amount.
Do you know of any micro lenders who live in Canada?
I never really looked in to Licensing. I will have to do some research, but it's certainly an avenue to explore.
Re: Finished Prototype - How to land an Investor?
by SYAWEDIS » Sun May 22, 2011 3:09 pm
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
Also, if I don't have a Patent, is licensing even an option?
Re: Finished Prototype - How to land an Investor?
by Roger Brown » Mon May 23, 2011 4:05 am
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Roger Brown - Black Belt
- Posts: 1208
- Joined: Mon Oct 30, 2006 2:53 pm
- Location: USA
Read these two articles from Inventor's Digest. They may help you in your decisions.
http://www.inventorsdigest.com/archives/2927
http://www.inventorsdigest.com/archives/5042
http://www.inventorsdigest.com/archives/2927
http://www.inventorsdigest.com/archives/5042
Come visit my sites at http://www.RogerBrown.net
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.
Re: Finished Prototype - How to land an Investor?
by SYAWEDIS » Mon May 23, 2011 11:23 am
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
Truly helpful information, Roger Brown.
I don't have the resources to start the business from the ground up, so licensing sounds like a logical route.
You're information sounds solid, and your name is repeatedly suggested in this forum, so I was wondering if we could sign an NDA and discuss my invention, and a possible partnership? This is a small product with huge potential. Let me know your thoughts.
-Nathan
I don't have the resources to start the business from the ground up, so licensing sounds like a logical route.
You're information sounds solid, and your name is repeatedly suggested in this forum, so I was wondering if we could sign an NDA and discuss my invention, and a possible partnership? This is a small product with huge potential. Let me know your thoughts.
-Nathan
Re: Finished Prototype - How to land an Investor?
by Roger Brown » Mon May 23, 2011 11:40 am
-
Roger Brown - Black Belt
- Posts: 1208
- Joined: Mon Oct 30, 2006 2:53 pm
- Location: USA
Send me an email with your NDA to rbrown@rogerbrown.net If you do not have one I can send one to you for review.
Come visit my sites at http://www.RogerBrown.net
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.
or http://www.looking2license.com
I have gotten 9 products licensed spending less than $100 on each, you can too.
Re: Finished Prototype - How to land an Investor?
by SYAWEDIS » Mon May 23, 2011 1:13 pm
- SYAWEDIS
- White Belt
- Posts: 7
- Joined: Wed Mar 30, 2011 8:17 pm
I don't have an NDA, but I'd be happy to review yours. email sent!
Cheers
Cheers
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