Bringing Product/Idea to Market with No Capital...???

[Chew_Bear]

New to the Forums. Just a curious guy that has a knack for entrepreneurship and being my own boss. I am always thinking about new ideas for things.

So...Say I have a great product/invention (working model/prototype) that I know will make money and make customers happy in my intended industry/customer base. But...I don't have the Capital to start up my own LLC, business license, store or factory.

So...I decide its better to 'SELL' my product/invention to a major/prominent manufacturer/brand that is already established in the industry.

Therefore...Do I...

A. Sell my product/invention for a 'LUMP SUM' and call it good and move on...???

...Or is it better to...

B. Set up a 'ROYALTY' Contract/Agreement/Program where I get a certain percentage of the sales from every unit of the product sold...for how ever long the product maintains its popularity and/or is requested to be made based upon supply and demand...???

e.g. 50% of sales for 1st year, 25% for the second year, 12% for the 3rd year and so on for how ever long the product maintains shelf life/popularity.

Which option would I stand to make the most money...?

I take it if you have a product that is really worth while and you think its popularity is going to stay for a long time in the intended industry/market...Would the Royalty option make more sense for making the most money...?

 

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[jon.a]

Read the book

 

[MJ DeMarco]

Say I have a great product/invention (working model/prototype)

Do you have that already? Or is this hypothetical?

 

[Kingsta]

If you don't invest in yourself, why should a company? Maybe its time to put together a business plan and start working for your money.

Any idea you've had, I guarantee someone else has already had that idea and maybe even followed on from it. The idea isn't what determines success, the execution is.

Facebook wasn't a new idea, it was just executed better than anything else.

 

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[Chew_Bear]

Do you have that already? Or is this hypothetical?

Hypothetical but am working on it.

 

[Jonathan C]

I'm by no means an expert. Nonetheless, I saw this book that I thought might be of use to you. I would like to read it myself at once point, it looks promising.

One Simple Idea, Revised and Expanded Edition: Turn Your Dreams into a Licensing Goldmine While Letting Others Do the Work (Business Books): Stephen Key: 9781259589676: Amazon.com: Books

 

[MB2]

You are worrying about the steps that are far away from your next step.

Always know where is your destination and next step is, steps in between can be figured out later.Think over about what your next step not the 50th step.Play the game step by step like the CHESS.

Remember, no one care about your invention or anything unless it solves there problems they have.

Also,"Not so great" idea executed is better than the zero executed idea that no one have ever thought.

I bet your next step is acquiring knoweledge and applying them at the same time.Before you go on doing anything else, go through following threads.

• GOLD - 9 'Slap-Your-Face' Lessons You Need to Learn from this Shark Tank Success Story
  
• GOLD - 7 Steps That Will Radically Change Your Life in 30 Days or Less, Guaranteed.

On top of that, read the millionaire fastlane book.

 

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[OldFaithful]

Which option would I stand to make the most money...?

Each method is likely to earn you roughly the same amount of money...none.

If you have no capital, then you aren't likely to patent your concept. As soon as you show it to a likely buyer, without the threat of patent protection, they will copy it and run to market.

If you manage to arrange a royalty payment, they will likely change the product to escape your original design constraints and run to market.

Either way, the risks are great. There is a chance that your first/only meeting will be with a noble and honorable business person that won't cheat you, but the odds of that are slim. Obviously my suggestion is to start making your own product!

 

[David Young]

There is no shortage of good ideas out there. The difference between an ideal and a product or business is the process in between; prototyping, validation, refining, marketing, selling etc. Unless you have a protected validated idea the value to third party might not be great. I suggest you work on the business model to determine how much cash you will need to get things moving and what the likely profits will be. If you genuinely have zero money then you will need an outside investor- start local with friend and family and build from there. The business plan should be a convincing proposition.