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We have a new website: OneStopInventionShop.net. From now on, all of our new content will be on that website. _______________________________________________________ With Our Economy in Trouble, What Can an Inventor Do? Retail sales are down, people are losing their jobs, and things will probably get worse before they get better. Is now really a good time to bring your product to market? Yes! Now might be an even better time to bring your product to market than when the economy was in good shape. We'll discuss why and how you can capitalize on this opportunity. Companies are cutting back on Research and Development The R&D department of any company that develops their own products is both expensive and does not always provide very tangible results for the money they spend. That is not their fault; it is just the nature of R&D. But when companies are having to tighten their belt, the R&D department is an easy target for layoffs. You see, there are many ways for companies to save money in their operations -- for instance, they can outsource their customer service calls to India -- but once they have taken those steps, it is hard to have further cutbacks. You cannot cut out customer service all together, or get rid of the marketing department, but you can get rid of the R&D department. Companies need new products to grow and expand, but when companies are worried about staying out of bankruptcy this quarter, they start thinking in the short-term. This is great news for inventors. These companies will be interested in taking on outside products simply because they aren't developing their own products, but you may need to change your strategy a little bit. Although you could approach the company with a finished product, it is better to approach them with an idea. Take your new idea to a company and ask for their feedback. If they are interested in the product, tell them you will develop it for them if they agree to market it. You want them to sign an actual agreement and not just give their word. Then you can take this agreement to a manufacturer and say that you have a marketing partner all lined up if you develop this product. Ask the manufacturer if they would be interested in manufacturing this product in return for some help in the development of the product. Most manufacturers have engineers and other staff members that they already pay. Since these staff members are already on salary, it doesn't cost the manufacturer any money for them to work on your product. There are a few ways to make money on this set up. You can buy the product from the manufacturer and sell it to the marketer. The marketer can buy the product from the manufacturer and you get a percentage from the manufacturer. There are as many variations as you can think of. Make sure you have a plan and everything in writing so you make sure you get your money out of the deal. Becoming a Risk-Free Entrepreneur This is essentially a summary of what is discussed in Don Debelak's book the Risk-Free Entrepreneur. In the next few newsletters, we will go more in depth on how to make this kind of deal work. Being a Risk-Free Entrepreneur was already advantageous while the economy was in great shape, but now being a Risk-Free Entrepreneur is even more advantageous. If you are interested in knowing more, continue to read our newsletters and purchase the Risk-Free Entrepreneur. Below is an excerpt from the Risk-Free Entrepreneur: Finding Your OPM [Other People's Money] Concept OPM deals exist because shifts in the market, either because of new applications, other new products and services, or new needs and desires of users. OPM entrepreneurs, companies, or others who move right away when these market shifts occur are the ones that cash in on the market. Microsoft is an example of someone who cashed in on a new market shift and you can do the same. You can increase your odds of finding a product by being very intentional in your efforts to find new opportunities. You should start by choosing two to three markets to concentrate on. You can’t just be a casual observer of a market, you are unlikely to come up with the type of innovative concept needed for success unless you have intensive involvement with the market, hopefully by participating in the market as an end user or by working for a supplier, and by learning everything you can about the markets. Choose a market related to your work, hobbies or outside interests of yours or a newly emerging market where there could be many opportunities. Emerging Markets These are often the markets where opportunities abound but you may have trouble locating them. You don’t want to wait till new markets or trends are listed in Time or Newsweek magazine, or your local paper. That’s way too late, you need to be on the cutting edge. One way to find new developments is to periodically check in on the web sites, www.gndp.com and www.profuturist.com. The first site is for the Global New Products Database, which includes new product and concept trends (including services) for 30 major markets, and 120 market subcategories. www.profuturist.com is the web site of Association of Professional Futurists who provide insight into new trends long before they are noticed by most people in the market. Of course, not all trends they identify come through, but they do keep you thinking about what the future might bring. Related to Work or an Outside Interest Your work probably has many new developments occurring. This could be a change in applications, change in the way work is done, interfacing with new regulations or other vendors, new competitors, other new products and big changes in the way customers or vendors do business. With each new development ask yourself the following questions about the new development as a starting point for finding new concepts or ideas:
Copyright 2008 by DonDebelak.com. All rights reserved.
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