Any entrepreneurs or inventors here? I need some advice

by observador 6 Replies latest watchtower bible

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  observador

  Hi guys,

  I have a USB (hardware+software) type of product prototype ready, but now am struggling to come up with ways to get funding, patent, partners etc.

  Are you an inventor? Have you ever got a patent for a product you created? How do I get one on a budget?

  How do I get funding from investors?

  What's the best way to attract a partner to the business?

  Is it advisable to create a website to market the product before it is actually ready?

  Are you a hardware engineer? How do I go about contracting for the creation of the final hardware design?

  Your advice/suggestion/support will be much appreciated.

  Thanks a million.
• 

  Perry

  I have a USB (hardware+software) type of product prototype ready, but now am struggling to come up with ways to get funding, patent, partners etc.

  Are you an inventor?

  Yes.

  Have you ever got a patent for a product you created?

  Yes

  How do I get one on a budget?

  Buy a do it Yourself Patent CD and follow the instructions. Or spend about $9000 for an attorney to do. You will want a utility patent since the design patents are useless. Some people will introduce a product with the words "PATENT PENDING" on it in hopes of deterring a knock off. This may work for a short term while you secure funding, patent filings etc.

  How do I get funding from investors?

  Depends on how much you need. Generally you'll need to demonstrate sales, manufacturing and supply chain for larger amounts. Make sure you get a signed Non Compete; Non Disclosure (NCND) agreement before you talk to anyone. Note: If that person does business outside the US, Your NCND with him will likely be worthless. I've been knocked off before I could even get around to some of my ideas. My wife saw one of my products in a magazine just 8 months after I presented to a Taiwan manufacturer's rep. I still have the worthless NCND.

  What's the best way to attract a partner to the business?

  You don't want a partner. Start small at (non-competetior) trade shows and look for contract partners that will work for commissions.

  Is it advisable to create a website to market the product before it is actually ready?

  Not a bad idea. However you can easily research the number of times people search for the kind of item that you are contemplating through the somewhat free service know as WORD TRACKER. This might give you an indication of whether or not to proceed with that.

  Are you a hardware engineer?

  No. I am a hardhead engineer.

  How do I go about contracting for the creation of the final hardware design?

  Just get bids from reputable US firms that will respect the NCND agreement.

  Good Luck!
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  Quotes

  I have no experience in this, but IMHO:

  take the easy money and license the idea to an existing manufacturer, then sit back and collect royalty cheques.

  Ask yourself what do you want to do:

  (A) make money and have time to invent more things?

  Or

  (B) Run a manufacturing business and have to deal with suppliers, operations, payroll, budgets, taxes, duties, distribution, intellectual property protection, etc.?

  Personally, I would go for (A). If, OTOH, you want (B), that is fine, but it would be just as easy, and likely have a greater chance of success to simply go out and buy a pre-existing manufacturing business. True, you wouldn't have the satisfaction of selling a product you invented (at least at first, unless/until you added your invention to the product line) but you would get everything else that goes with operating a manufacturing business.

  Be warned: the path to lucrative licensing deals is cluttered with fraudsters and scammers.

  ~Q
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  zagor

  Yes it is not easy. On one hand you want to earn money and on another to protect your property, which can be rather expensive thing to do. When I did it I made VCs sign non-disclosure agreement. Don't know if that would work in States but check it out. Basically if they go away and make money out of it you can sue them for everything they are worth. Anyway, just a thought.
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  observador

  Guys,

  you all have some good suggestions here. I really appreciated them.

  Perry, I like your suggestion for getting the CD and try patenting the idea myself. I'll look into it. I also like your point of not having a partner. I have thought long and hard about this. Also, your point of making anyone interested sign the NDA is very good.

  Quotes, your points are very well taken. You know, I have thought about doing very similar to what you said, except I'd like to create the business first and maybe sell it later for a better price. Those are all possibilities on the table (I mean on my mind...).

  Zagor, your point about being careful and making them sign the NDA is a very good one.

  Now a general comment, one of the things that worries me the most is that this type of product would require a good effort to get the manufacturing part correct. I also would need some post-sale support since the product is a high-end product involving information security. I never thought that creating the product would be easier than manufacturing it and marketing it.

  Any other advice would be much much appreciated. Are any of you a web designer? How much would cost me to get a good looking site of about 6 pages?

  Thanks.
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  hubert

  Observador, have you checked your p.m.'s lately? there's some important info there.

  Hubert
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  observador

  No, Hubert, I haven't.

  But thanks for asking; I'll check it out right now. :)

  Observador.