Selling Your Idea

So, you have just had a eureka moment and you are looking for a company who will buy your idea. Are you looking to make a quick buck? Or do you want to licence your idea?

Before any business will sign a cheque you will need to convince to them that your idea is a sound investment. This can be achieved by creating a professional business presentation which details the following

• What the product is and how it works
• Who the market is
• How big the market is
• Cost of production
• Legal protection

Protection

If your idea has any value to anyone then it is important that you protect your idea. No doubt you would have seen the investors on BBC’s Dragons Den asking the inventor if they have a patent. A patent protects your invention from being copied by another person and will also add value to your idea and business proposal.

Development

It is rare to hear of somebody selling an idea which hasn’t been developed into a prototype or 3D drawings. This is because the 3D computer drawings or prototypes are needed to establish if an idea actually works. Once you have completed the early stages of development you will have something which is of much greater value to an investor.

Identifying Potential Buyers

You need to identify who you are selling your idea to. Make a list of the ideal companies who you want to pitch to and tailor your presentation to them. It is a good idea to be clear about what you are offering but remain flexible with the terms of agreement. It might be unappealing to some companies if you only want to sell the product and are not interested in a licensing agreement. This is when you sell the rights for another company to manufacture your product. This can be for a royalty or one off payment.

Business Plan

The more detail the better. After product design and development you will be able to calculate the cost of production, weight, recyclability and shipping costs, all of which will add weight to your business proposal. You might also find that the development stages of the design brings up more patentable features in your design. After the development stages are completed you have a better chance of licensing your product.

Shoe String Budget

There are development companies who will do the design for free in return for a royalty. This is appealing to someone without any money but it’s good to know that you will have to give a larger percentage at the early stages or a project. This is usually the route for people who want to make a quick buck or get something for nothing.

So remember the more you do now, the more you get later. And.. If it sounds too good to be true… it probably is.

Research

There’s an abundance of information on the internet which will help you prepare a business plan, understand entrepreneurial opportunities, patents, market sizes etc.  The more work you do at the early stages of a project the more likely it is to succeed in the long run. It’s not as simple as selling an idea…. unfortunately.

http://www.entrepreneur.com/

http://www.bplans.com/

http://www.ipo.gov.uk/