Perhaps you have an inventive mind and would like to focus on coming up with new, great ideas and not stress about converting them into full-scale businesses. Luckily for you, there is an option that suits your need perfectly – selling a business idea to already established businesses and investors.
Just as with anything, there is a smart way to do this. Keep reading to find out how you can sell your idea.
Being in the midst of the information age means that the more information you have, the better it is. Hence, before approaching firms with your idea, you must do an extensive research which should involve the following:
This is the business activity that discovers information of use in making marketing decisions. It is necessary to understand certain things such as the usefulness of the idea, willingness of customers to pay for it, and competition amongst other things. Then, you must define what you want to research and how you will be conducting the research. Afterwards, collect data and draw conclusions from them to aid with the market research.
Even though it may seem very early to think about this, it is very helpful to consider the production aspect of your idea. This is because it may prevent you from developing your idea any further if your invention calls for unique manufacturing techniques or scarce materials. Although there are companies out there with the resources to easily bring your idea to life, they will prefer cheaper alternatives which you will need to propose to them.
You need to determine if your invention can be patented or produced without infringing on other filed patents. If you are thinking about a physical product, you should also consider trademarks and design restrictions here. Also, the more you know about the regulatory issues and necessary legal steps, the easier your development process will be.
Patent / License
Approaching businesses without intellectual property (IP) protection is risky because it can indicate a lack of professionalism and preparedness. This may result in you not achieving the result you want – even if the investors like your idea. Before attempting to pitch your idea, it’s critical to familiarise yourself with the legal requirements and obtain the required protections. Nowadays, patents, trademarks and designs can be registered online.
You may want to protect your idea with a patent. Some ideas may have a different feel or look which can require registering a design and trademarks. Also, copyright laws are applicable where the idea is a software. In order to be certain about what you require regardless if it’s a patent or trademark, you should seek legal advice.
If your idea is similar to another idea that’s already protected, be aware that most companies guard their IP rigorously. This means that they will do everything they can to protect it. They are also quick to take action against any competitors whom they think have infringed their IP rights.
Present your idea
After gathering the required information and protecting your idea, you will need to present it to potential investors and buyers.
You should write a report that discusses the problem in the market, the need the product meets, and the features, specifications and benefits of the product. The report should also include the product’s anticipated market, and the legal status of the idea i.e. patent, copyright or trademarks.
Also, create a presentation or slide show to sell the idea to investors interested in your idea. Keep the information easy to read and concise, incorporating diagrams, photos and videos of product use. Selling a business idea requires careful preparation – but it can earn you significant capital without all the operational legwork.
Unsure where to start? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest Legal Marketplace.