Mom Invented

Are you looking to license your product? In my January Entrepreneur.com column, I go over the top tips you need to follow to get a licensing agreement for your invention:

• Assess the complexity of your product. Is there a way to get a working version developed without extensive costs? If not, perhaps you should consider your second-best, less-costly product idea. Most inventors are innately creative and have more than one idea.
• Identify manufacturers. Find out which manufacturers currently sell product lines to large retailers where you can see that your product would be a fit.
• Create a prototype (Plan A). Create a “finished-looking” version of your product (this is actually a prototype but call it a product) and pitch retail buyers. The goal is to get a commitment before you actually launch. Maybe even offer them a few months of launch exclusivity. At least as important as the prototype, if not more so, is the mock-up of your packaging. Your product must look as retail ready as possible. If there are shortcomings, use them as an advantage, e.g., "my packaging is in the process of being redesigned so any suggestions for improvements would be welcome at this time."
• Develop your product (Plan B). If you can’t get a commitment, it's time for the development and launch phase. Develop your product, attend a trade show and generate demand. This is a higher-risk approach due to the time and capital investment involved. But if the end goal is licensing, avoid every unnecessary business-building cost possible. This approach requires more resources and involves more risk than Plan A, so it will require a well-thought-out business plan.
• Be clear on your own goals. Once a buyer places an order, a new friend enters the scene: greed. At this point you will likely ask yourself whether you should just go ahead and become a manufacturer rather than share the spoils with another company. This is a great problem to have and a worthwhile consideration. However, since the complex process of weighing the pros and cons of each option are fodder for another column, I will just say that the benefits of licensing remain intact in spite of early success.

Read the entire article at Entrepreneur.com...

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