Invention help

[DonRotolo]

Originally Posted by Not2B

Most of those invention hot lines are borderline scams.

I agree with that, except for the word "borderline".

Protecting your idea is only useful if it has considerable value. A patent for an AndyMark transmission is not worthwhile - not because they item isn't good, but because they will sell maybe 800 per year at $330 = $260k - not all that much of it is profit, and even with a patent, someone could redesign it sufficiently to not infringe on the patent, but still have a 2-speed transmission suitable for a FIRST size robot.

In other words, unless it's kind of earth-shattering unique, and has a large market potential (million$), just build them and sell them, it's unlikely someone else will invest the effort to compete in a small market.

But, you also asked about a few other things - not just protecting your idea.

acquire funds, produce, market ,profit and protect

Funding: The most basic funding source is your own wallet. The next is friends, relatives and enighbors who might believe in you enough to invest a modest sum, for some share in the profits - this is essentially how a stock-issuing company works, but they are on a bigger scale. Or, you can get money from a venture capitalist - these are investment firms where they invest OPM (Other Peoples Money) in start-up businesses that they think will earn them money. These guys are sharks, and not easy to get money from, but they can be valuable management partners, too. Never offer debt, only equity! Learn what that means before getting OPM.

You will need a well-written business plan. Note that OPM can spot Bull Poop quite easily, so do your homework. See below about NDAs.

Production: Unless it's something you can build yourself, you need to find someone to build it, or at least parts of it, for you. Let's take AndyMark transmissions: At first, they might have a local machine shop do some of the work, and buy things that don't need to be made. As money comes in, maybe they would buy a small CNC milling machine, and bring some of the production in-house (or garage, as it were). Eventually, they could do it all...or, they could do none of it, hiring a company (or several) to manufacture parts and/or assemble things for them. If your item is complex or difficult to build or even assmeble at home, or in a rented factory space, there are so-called "contract manufacturers" who will handle the whole thing for you - for a price.

Years ago, I made spare cash selling specialized electronic circuits and cables to Amateur Radio operators interested in digital networking via Radio. I designed the circuits myself, made some of the circuit boards at home, and contracted some out to a local company because they were a bit more complex. I found the cheapest suppliers with an acceptable quality level and bought the myriad parts, then soldered them up in my basement. After a while, I hired a local kid to do some soldering, paying him a flat rate of $10 per board. That was production.

Ahhh, Marketing, my favorite. How to tell people what you've got, and where to send the money. Note that Advertising is not Marketing - although advertising can be a part of a marketing plan. marketing has more to do with identifying your likely customers in general, then specifically, and finding a way to communicate with them.

With my Amateur Radio business, I bought a membership list from a large club of people interested in digital networking over radio - over 1000 names - made up a catalog and mailed one to each person. I also advertised in some Amateur Radio magazines, got some product reviews published, put out a flurry of product announcements...

Marketing is an art. Get one of your mentors or parents, who works at a larger company, and make an appointment to "shadow" someone in the marketing department for a day or two. If that person knows what they're doing, they can teach you more in a day than I could write. Too bad you're not near NJ, or we could sit down and talk.

Profit: That's what's left of all the money that comes in, after everyone's been paid. Suppliers, mostly, because as a start-up they probably won't extend credit. Don't forget to pay the accountant and lawyer - you'll need them more than they need you. Learn how to keep your own books, and do it the right way. Get product liability insurance, if there's any remote way someone could hurt themselves with your product - even a book, or software, can hurt someone (not only if you throw it, either).

The Rest: If you start a real business, be sure to register with the town, county or state as necessary. Consider incorporating, it can be done cheaply. Plan on filing tax returns, also for sales tax in your state. Get ready to work for the most difficult boss you will ever have. Don't do it alone, find a support group - long hours alone can get you at times. Pick a partner carefully, these things are less likely to work out than a marriage.

Of course, you can go big-time with something too. Let's say you have the idea for, say FedEx - something wildly successful. Venture Capitalists will help you get off the ground, you can find manufacturers, hire markting firms, the whole bit. But OPM doesn't come easily.

Buy a book on this stuff.

And, I agree - don't tell anyone what you're thinking, unless you trust them implicitly (like parents) or they have signed a NDA (Non-Disclosure Agreement - you lawyer can write one up for you)..

Oh, and Good Luck. Everyone should try the Entrepreneur thing at least once. It is very rewarding, even if usually not enriching.

Don