If you have an innovative mind that keeps thinking about the next best invention out there, but not the interest in making that idea a reality. Or if you have ideas, but no interest in running a business, or have other import things to take care off.
This could deprive you of some serious cash and the world of a great idea. Now while this is not a good thing, you still have an option that can let you bring your idea into the world and also make a profit from it. This is to sell your idea to a business or corporation by licensing it to them. Licensing is the process which involves selling your idea to a company in order to allow them to develop it and make a profit our of it.
They will take charge of all the tasks and processes required in order to let your idea be launched. This is also the perfect option for anyone who does not have the financial power to give life to their idea.
Similar to starting a brand-new business, licensing your idea has a process for approaching the launch of your product. Following this process will let your experience be as smooth as possible and will let you be successful in your pursuit. You can use this experience as a standpoint and sell ideas in the future as well.
Let’s take a look at the steps of this process:
When you are on the verge of selling your idea to a big shot company, you need to conduct your research beforehand. This will ensure that your quest is not trivial and that you get armed with the best knowledge for getting the better end of the deal. Before you try to approach companies, you must have completed the following research:
Knowing the market value of your invention idea will make a big impact on the licensing process. You must gather all the information there is about the market of your idea. You must then compile all this data into easy to understand information. This can then be used for providing information to the corporates about the marketability of your idea.
You need to go as far as possible to determine if your idea can be patented or if it already has a patent. If you can, hiring a patent lawyer would be a great idea at this point. You can also check out the website of www.ustpo.gov to allow your research to be easier. The more information you possess, the easier it will be to get a great deal from your idea.
You will need to learn about the production process of your idea, especially if it is a brand-new invention that needs unique and rare materials. This will go a long way in helping you determine which business will give you the best deal on your idea.
Now that all your research is complete, it would be a good idea to hit the preparation button. You will need to be as prepared as possible because this is no less than a job interview.
If you have already compiled all the information you collected in a relevant format, you can use it and present it to potential businesses. For this, you will need the best presentation you have ever made. Make it as professional as you can, and if you are not good at it, you should consider hiring a freelancer for the job. It will require a 3D animated prototype of your idea designed in CAD. Along with that, you will require an easy to understand way of conveying all the numbers to the team that will meeting you. Be sure to dress to impress and speak with shining confidence.
You must also carry a few physical copies of your data to hand out the members of the meeting. Your sheet should:
- Clearly state the problem or need that the product solves for the world
- Explain the feature of your product
- The market numbers of your product
- The legal matters of your product regarding patents, etc.
A great idea would be to address them with an introductory letter to introduce yourself, your product and why you wish to license it. This will help them understand your goal and form a better business relationship with you.
Choose your Targets Wisely
Once you have all your information prepped and ready, you will need to choose your target businesses for selling your idea to. This will help you have a list of people to connect with. You should start with a list of 50 prospects, if you can get more it is even better. Once you realize that companies are turning you down, you will automatically improve your strategy and use it to finally get accepted. A good idea is to start from the bottom of your priority list so that by the time you reach the ones you want to focus on, you would have perfected your pitch and your strategy.
If you are wondering how to choose the right company for licensing, you can use your data. Depending on what kind of item it is, you will need to go to where items like it are sold and note the names of the manufacturers. This will help you learn the names of the companies you need to contact. Then start researching about them. Once that is done, you can be assured that you will be ready to pitch. Once you have completed all the above steps, you will no longer need to ask “how to sell my idea?” anymore and will have the answer with you.
Many of the companies you identify here would be familiar to you because of the research you conducted. Based on this and your current research, you can organize the companies in a priority order that helps you figure out who to start with.
As you can see, selling your idea may not be an easy task, but if you do it right, you can end up with a huge profit and also make an impact on the world.