Writing a Business Plan
Your patent can be a very expensive wall hanging, or an instant money maker. If it’s money that you want, then the same devotion you committed to obtaining your patent is needed for developing a business plan.
When you started the journey toward becoming a patent-holding inventor, it was an idea that first got the ball rolling. You had to steal time from your everyday life to passionately devote yourself to developing a drawing or prototype. You spent time discussing your idea with family and friends, rethinking the idea, spending money along the way, and then finally preparing your patent application for submission to the PTO. That same perseverance is needed again now to convert your invention into a money maker, and maybe even a handsome retirement fund if you catch some breaks along the way.
Chances are that you need money to make your patented idea a reality. Since investors are naturally cautious about investments, you will need a well-prepared business plan to convince them to invest their money. So, how can you prepare for their scrutiny if you don’t know what they are looking for? You can begin by thinking like an investor, because then you will realize that the patent is only one part of what it takes to start up a business. The rest is about you and the management team, the market research, return on investment money, how the investor will assess your business and much more. After all, you can’t offer any guarantees about how well your idea will succeed in the marketplace, but you can be thoroughly prepared for the introduction and management of your idea.
Most inventors don’t write a business plan until they realize that it’s absolutely necessary to get financing for their patented idea. The only alternatives to preparing your own business plan are to hire a marketing company to do the work for you, or to have no plan at all. Having no plan at all is like an unlicensed contractor attempting to build your house without a set of blueprints - it will take more time and money to fix the problems along the way than if the contractor had followed a plan in the first place. If you decide to hire a marketing company, be prepared to spend large sums of money for the business plan. You can, however, keep your costs low when preparing a business plan if you are ready to invest your time researching the same type of information that a marketing company has access to.
As you devote time to researching and hiring consultants along the way, you are going to learn more about the business and you will be better prepared to successfully manage the business in the future. To help you get started, the following information demonstrates how simple it is to get off on the right foot.
Research: Learn what your industry is about and who is involved. Find out about related industries, sales techniques, and how to write a business plan. Gather as much information and statistics as you can, such as: how large is the market, who sells and buys, who is the competition, how to forecast sales, etc. Get the inside scoop about what is happening in your industry. You will find current information about what people are doing and their opinions about the trade. Read about the introduction of new products and trade shows that you will want to attend. Learn about your industry, step-by-step and understand the technical terms so that you can talk like a veteran of the trade.
Seminars: Go find out about investors. Even if you don’t need money from strangers to bring your invention into the market, it’s important to learn from the professionals who know the value of a strong business plan. Also, attend classes about what it takes to be a successful salesperson.
On-site visits: Visit the factories or offices of your industry. Tell them that you are preparing a research paper on the industry and you would like to interview them. Prepare yourself like a journalist before the phone call, then schedule a meeting. You will find out that employees will graciously talk about themselves and the importance of their company.
Negotiation: Learn how to negotiate. You are going to have to make a deal to get someone to invest into your idea. Although it’s different than negotiating to sell a house or a car, the basic idea of compromising is the same.
Resource the pros: Wisely spend your money on professionals who will provide you with guidance, such as a good CPA and a business consultant.
These few points are the basics of getting started toward writing a business plan. It will require creative thinking, hard work and money to bring together all the bits of information but you will be in a better position to obtain financing. To help yourself succeed the quantity and quality of information is the cornerstone for successful planning.
This phase of starting your business can be just as exciting as when you planned to apply for your patent. You have to uncover the details and bring the facts together in an organized manner because no one else will give it the same attention that you will. Having a patent proves that you have the talent for being innovative and persistent. Now, just use that same perseverance to making your idea a reality.
