Each year thousands of new consumer products are introduced to the marketplace, many of them developed by individual inventors or small firms.

• 1. Set up a company to manufacture and distribute the idea.
• 2. License the idea to an established company who are already selling products in the same market.

Regardless of the route you choose, it is important to have protection for your idea in place first.

Stage 1- Idea Protection

Every new idea is unique, therefore the best form of protection varies accordingly. A sensible first step is to consult a specialist who can evaluate the concept and determine the best way to proceed for the idea (patent, registered design etc.).

Innovate can complete a free initial assessment of the idea. This assessment will explore the best route to protecting the new concept.

Stage 2 - Concept Presentation

When commercialising an idea, it is vital to present it in a professional manner that clearly conveys its full potential.

Before organising a meeting with a potential licensee or financial backer, it is worth investing a relatively small amount to professionally develop the idea. Innovate’s design team specialise in creating product presentations to demonstrate the viability of new concepts.

Stage 3a - Licensing

Both routes have their advantages, but most individuals choose to license their idea. This is because an existing company will have the manufacturing facilities and marketing knowledge to take the product to market. It is also a cheaper option than setting up a business to commercialise the idea.

Each licensing deal is different, depending on the potential value of the invention and its stage of development.

• Idea only (very hard to license): 0.5-1% of production price
• Prototype + patent pending/granted: 3-4% of production price
• Product design + Prototype + patent pending/granted: 4-10% of production price

The likelihood of success, and the financial rewards, are often greater if more work has been completed by the inventor prior to meeting with industry. Developed products always appear more attractive to potential manufacturers.

Presenting to Industry
Statistics show that people who market their ideas to industry themselves are far more likely to succeed. You do not need to be a salesperson or an experienced businessman to license an invention to a large company. The following guidelines may help:

• Before revealing the idea, ask the company to sign a confidentiality agreement (Non Disclosure Agreement)
• Ensure you have a professional presentation before showing your idea to industry, as you often only get one opportunity
• A licensing agreement is a legal document. It would be prudent to consult with a licensing practitioner to ensure you understand and agree with all the content

Stage 3b - Selling the product yourself

The benefit of manufacturing and selling the product yourself, is that you have total control of the venture and consequently receive larger rewards if it is successful.

If you wish to proceed down this route, it is worth developing a professional presentation of your idea to show to investors. This presentation can also be used to secure orders, prior to prototyping and starting a company.

Innovate specialise in creating professional presentations to help inspire confidence in the idea.

Stage 3c - Combination of routes

Licensing deals sometimes specify the countries that are covered under the agreement. Therefore it is possible to license the idea and also manufacture and sell the product yourself in other countries.

For example, James Dyson licensed his dual cyclone vacuum cleaner technology to manufacturers in Japan, for the Japanese market. He used this money to set up his own manufacturing and marketing company in the UK.

Stage 4 - Prototyping

A prototype often helps to convey the idea and prove that it works. However, prototyping can be expensive. It is usually possible to use the concept presentation to gauge the level of interest shown by industry before committing yourself to the expense of a prototype.

Innovate have a proven track record in building successful prototypes.


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