Develop an Invention Business Plan for Success
Website design By BotEap.comOverview
Website design By BotEap.comAn effective Invention Business Plan is an inventor’s best tool for efficiently navigating through the invention process. As a seasoned inventor, I’ve learned that an idea isn’t perceived as a viable business opportunity until it can be effectively communicated on paper (or any other readable format). No matter how great your idea is, most people expect you to have it in writing. When I was new to inventing, I had no idea what that meant. I searched but did not find any universal format to document my ideas.
Website design By BotEap.comWhen I submitted my concepts to invention hunters, licensing agents, manufacturers, retailers, engineers, and the patent office, I was asked many different types of questions. The questions ranged from “What problem does it solve?” to questions that required extensive research like “Who is your target market?”
Website design By BotEap.comFortunately, with my business background and experience writing business proposals, I was very familiar with the answers to such questions. Therefore, to save time, I decided to consolidate all of these questions into a universal format that could be used and/or adapted for any audience within the invention process.
Website design By BotEap.comIn this article, I discuss how to develop a versatile yet engaging business plan for inventors and their inventions. I explain its importance, main elements, how and where to find content, and its many uses. I also provide actual examples adapted for three common purposes: to file a provisional patent, to start an invention search, and to send to other key users. Other key users may include retailers, manufacturers, industrial engineers, investors, and licensing agents. By sharing my ideas and examples, I hope to help inventors like you to develop your own material to effectively communicate and present your invention to different users within the invention process.
Website design By BotEap.comImportance
Website design By BotEap.comAn invention business plan is an effective communication tool for providing a clear and tangible description of your invention while conveying its feasibility and value. Tell a detailed story about your invention, including what it is, how it works, and why your invention is a credible business opportunity. In general, it can be described as an organized all-in-one repository of everything you know or have learned about your invention. Include all angles of your invention to be used as a reference point for developing and/or submitting specific audience requests. Having a wide audience reach allows it to be used as a collection of information that can then be modified or adjusted according to the audience it serves.
Website design By BotEap.comInvention Business Plan Example: The Main Elements
Website design By BotEap.comMany different readers and audiences need to see your idea in writing. You will be surprised how many different questions will be asked about your invention. To efficiently answer such questions, the document should be designed in such a way that it serves as a detailed yet practical guide and resource to be used by a wide audience. Therefore, the elements and content of your plan must be comprehensive (that is, can answer most questions about your invention) and adaptable (that is, can be easily modified) for a specific use or audience. The recommended elements for a comprehensive and customizable report are as follows:
- Shorts Description: A brief summary (1-3 sentences) of what your (name) invention is, what it does, and how it’s useful. Website design By BotEap.com
- Summary: An overview of your invention, its market, and its benefits. Include the target market, how your invention solves a problem, or how it is useful to your market. Website design By BotEap.com
- To fit in: How does your invention fit into the product mix of an existing retailer or manufacturer? How is it innovative compared to your products? What is the best aisle to place your product? If possible, include a photo of the aisle and the exact location on a shelf. List the main selling and consuming benefits in a bulleted format. For example, key selling advantages may include sales potential, an attention grabber on the shelf, innovative disruptive qualities, and/or fills an underserved market niche. Consumer benefits may include simplicity, ease of use, automation of a manual task, saving time and steps, and/or solving an existing unmet need. Website design By BotEap.com
- Detailed description: This is where you describe the main parts or components that make up your invention, how it works or what it does, its main features, and the method or intended use. An example of main parts may include a container with a lid, a motor to rotate, etc.). Examples of core features may include dishwasher, automated functionality, ease of use, etc. And, the usage method examples could be: step 1, press the red button to power on, or pull the white knob to make it move. Website design By BotEap.com
- Suggested Retail Price: Base suggested retail price on comparable market prices and other assumptions and relative factors. For example, if the invention combines the task of two or more existing products on the market, provide the cost of using those products separately, and then demonstrate how your invention is priced in a way that saves the consumer time and money. A good example is a food processor. I would provide the cost of the knives, cutting boards, and the time it takes to cut everything. While his invention, the food processor, is priced less than all of those things put together, it also has the added value of convenience and time savings. Website design By BotEap.com
- Estimated manufacturing cost: The ideal situation is to contact manufacturers to get a quote on how much your invention would cost to build. But this can be difficult if you don’t have exact specifications. The other suggested rule of thumb is to divide your suggested retail price by a factor of 4. For example, if your suggested retail price is $80, then your estimated manufacturing cost is $20. Website design By BotEap.com
- Problem/challenge it solves: Discuss the details about the problem or challenge your invention solves. Include market trends and real facts taken from reliable sources. Describe how your invention is better than existing products. What are the flaws or downfalls of existing products and how does your invention solve those problems? Using the invention of the food processor as an example, I’d say it now takes 20 minutes to chop vegetables for dinner using traditional methods (knives and cutting board). The food processor would reduce that time to 2 minutes. Website design By BotEap.com
- What makes it innovative: How does your invention stand out or how is it better than existing products or traditional methods? For example, the food processor saves users time, money, steps and kitchen mess in the process of preparing food. Since there’s no need to use multiple knives and cutting boards to cut vegetables for dinner, it saves cleanup time and counter space. Instead, consumers get a compact, easy-to-use device with an automated motor to cut vegetables to size. Website design By BotEap.com
- Competence: List existing comparable products or alternative methods currently sold or used on the market. Explain how your invention has a competitive advantage over these existing alternatives. Website design By BotEap.com
- Market position or target market: Who are the target users and/or target buyers? Who are the targeted retailers or manufacturers? What are the main distribution channels (online, physical stores, both)? List of examples. Website design By BotEap.com
- Packing Suggestion: How do you want to package your product in a way that grabs the attention of the target user/buyer? Will your product be included as part of a kit of other products or will it be a stand-alone product? Will it be packaged in a box, a bag, with or without a label? What is your suggested package design and message? For inspiration, study package designs from other retailers or manufacturers. Website design By BotEap.com
- Product extensions, variations and plugin suggestions: What other colors, designs or styles can your invention have? Can there be multiple versions of your invention, such as low-end and high-end versions? Can you add something to your invention to make it even more useful? Do you want to provide a guarantee for your invention? Website design By BotEap.com
- Intellectual property: Please provide a patent number or provisional patent number if you have one. Write the date and how you came up with the invention. Use the United States Patent Office website to search for other related prior art. List and describe those related to the state of the art. List the history of the invention, if any. You can find story descriptions in any of the prior art examples. List your major components, provisional claims, and provide drawings or schematics of your design. Use prior art examples as a guide. You may decide to hire an industrial engineer, in which case please include those designs here.
- A related retailer or manufacturer 10-Q (quarterly statement) or 10-K (annual statement)– for market research, problem/challenge resolution, competition and target users. Forms 10-Q and 10-K can be found on the website of most public companies, or search for companies on the Securities and Exchange Commission (SEC.gov) website. Website design By BotEap.com
- Related patents from the United States Patent and Trademark Office (USPTO.gov) – for Abstract, Detailed Description, Components, Characteristics, Methods, Intellectual Property Research, Patent Results, and Drawings and Design. Website design By BotEap.com
- Trade association websites, magazines, and other business materials – for market research, competition and target users. For example, a well-known trade association is the International Housewares Association (IHA). Website design By BotEap.com
- Websites of retailers or manufacturers. – for packaging suggestions, product variations, key selling benefits, key consumer benefits, suggested retail price, manufacturing cost (rule of thumb: divide retail price by 4).