Do you have an innovative idea, but not sure how to monetize it? Regardless how good your inventions idea is, you need to convert homemade inventions into a consumer-ready product or service based on market demand to earn money from it.
Your ideas may have the potential to earn millions. Just think, how a small experiment has led Mark Zuckerberg to create Facebook. So, if you think you have a fantastic homemade inventions idea, act on it with the following steps.
How to Turn Your Homemade Inventions Idea Into a Profitable Business?
Davison Inventions is a platform where you will get assistance for idealization to build and market your prototype. Follow the below steps to monetize your idea and convert that into a profitable business.
1. Gather Information
Before you invest time and resources in your homemade inventions, you should gather crucial information. Collect the following data before you reach out to the investors or invest in it.
- Do Market Research: The first thing that you should figure out is to do market research to get feedback from people. You can also ask your friends and family whether they will buy this product if you develop it.
- Complete the Legal Work: The next step is to create a patent if applicable. Before that, you should figure out if there is an existing patent for your idea. If yes, you need to reconsider your approach to whether you can proceed without infringement. You should complete all this legal work first because it can create a problem later.
- Competitor Analysis: If you found that your product is already existing, but you can still create a business with that, you need to analyze competitors. Based on competitor data such as market demand, pricing, and other factors, you should prepare a plan.
2. Prepare a Plan
Once you have crucial information about your product, you should prepare a plan. Even though you are not sure how much money or resource you will need, you should have an estimation.
Apart from product development, you need to think about your marketing strategy. From selling the prototype to finding investors, you need to plan for it.
3. Build a Prototype, and Test It
According to your plan, you need to develop a prototype. Test your model with people who are willing to try it out. This phase will help you identify the loopholes, and you will get suggestions for improvements.
Additionally, you may also find potential investors for your idea. Before reaching out to investors, prepare a presentation with the following things:
- Mention the problems or challenges that your idea can solve.
- What are the benefits of your idea?
- Provide the data of the market demand of your prototype.
4. Find Prospects
Once you have the information and prototype, the next step is to identify and quality targets. The more prospects you find, the better it is. Consider the following factors to find potential targets.
- Size: You should consider the size of the company you are dealing with your idea. Remember, large companies may have a more extensive customer base, but many bureaucratic processes complicate the process.
- Location: Local companies near you are more comfortable to contact and also accessible physical meetings.
- Company Policy: Don’t forget to analyze the policy of the company before you deal with it. Some companies have simple processes for inventors, so read the company policies before you approach them.
5. Negotiate
In reality, there are no clear rules and regulations for negotiation. So, it’s a mutual agreement between you and the prospect. Keep the following things in mind before you deal with your prospect.
- You should set realistic expectations.
- Try to negotiate with as much up-front payment as possible.
- Negotiate your exclusive rights for the product.
Conclusion
I hope the above information has helped you understand how to sell your homemade inventions and earn from it. If you are still unsure, consider consulting a business consultant or non-profit organization for professional help.