Bizcoach, Small Business Ideas and Resources for Starting a Small Business
1. Can I develop my project myself?
Yes, anyone can develop, market, and produce their own invention, but this is a complicated, costly and difficult scenario.
2. What will I have to do?
In most cases you will have to learn everything there is to know about manufacturing, distributing, developing, and marketing your product.
3. How much money will it cost me?
The cost of self-development starts in the tens of thousands of dollars and usually runs into the hundreds of thousands of dollars. It can even reach millions of dollars.
4. How much time will I have to commit?
Initially you may start with a part-time commitment, but as your project grows in magnitude, you would usually be required to put a full-time or better effort in time.
5. Can I sub-contract a production of my product?
Yes you can, but in most cases, you would be required to pay up front for the cost of tooling your product; such things as moulds and dyes. Also, most manufacturers will not be willing to produce a product without solid financial credential or a letter of credit.
6. Can I produce a product myself?
Yes of course. You will require the production equipment to do so and you may need to purchase raw material, moulds, dyes, packaging materials, etc. All of which can be very costly.
7. Do I need a patent if I want to develop the product myself?
8. What is the benefit of self-development?
If you choose to self-develop your project, you are in total control of its destiny and on per unit basis, you will be entitled to more of the profits than you would if you licensed your product.
9. What is the disadvantage of self development?
Self-development is a very risky, high cost, time consuming method of bringing a new product to market.
10. How hard is it to get a retailer to buy my product?
It is extremely difficult to place one product in any retail outlet. Retailers traditionally deal with manufacturers that produce a large line of products that have established brand name consumer recognition. In order to insert an unknown one-up product into a chain retailer is a very rare feat.
11. How much money do I make if I self-develop my product?
You would be entitled to all the profits between the costs to produce your product less overhead and expense and the price you sell your product for.
12. Do I need a prototype of my product to self-develop?
Yes, if you intend to self-develop your product you would be required to make numerous prototypes right up to the point that you have a finished product.
13. Who pays for the tooling and the manufacturing of my product?
The inventor would be responsible to pay for all the tooling and manufacturing costs of producing your product.
14. How do I finance self production?
This is a very complicated question, but generally inventors would obtain financing initially out of their own pocket or the pockets of their friends, family and close acquaintances. Overtime, as the project becomes more successfeul, other financiers may be willing to invest such as a venture capitalist or bankers.