Moving from low to high production

[sotomo]

For some time, my goal has been to create and sell something. I consider creating to be one of the highest virtues one can achieve in life. My problem is that it's hard to create things when you don't own a factory. And even moreso when the idea is a new concept.

So my business plan is to create a rough, basically homemade product I invented, sell it on a site that accepts homemade stuff, like Etsy, and then after getting a large number of sales, and proven customer happiness with the product, take the profits and invest in a more refined design and mass production.

I can't give the exact product I wish to make, but for example, say hypothetically I invented the first PostIt. But I do not have a factory to create PosIts. My plan would consist of 2 steps. Step 1) I mix the glue concoction, and roll it onto the tops of paper pieces one by one. Then sell them as fast as I can make them. It's slow but I make some money. Step 2) Eventually I earn enough or get some investors to help mass produce it with a refined design.

Does that make sense? Or if I start making the product by hand, is moving to mass production hard to do, even if I have a patent, considering patents are all but useless in many cases....

I've heard of selling product ideas but I feel like I'd be scammed in that situation. Sorry if I'm asking a question that has already been answered. I am waiting for Unscripted to arrive in the mail, hopefully this weekend!

 

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[Jamshed33]

I hope you will reach your goal. All the best!

 

[garyjsmith]

You're going to enjoy Unscripted . It's one of those books that you'll go through many times. Very rich in content.

As to you question, it does make sense. In your given scenario, you have the concept for PostIt notes. You'd most likely want to develop, not only the concept, but the process for how the strips of glue are applied. Imagine you came up with this concept 80 years ago. Say no one had the factory. You wouldn't want to either 1) sit and wait for someone to have a factory, or 2) be applying glue to every single page with a brush. It'd work in getting you a proof of concept but you'd be selling a pad for 5c and putting forth 10c of effort.

In this day and age, SOMEONE has to be able to manufacture your product, even if it was diamond-plated PostIts.

PS. Branch out bigger than Etsy. They are good for homemade (or were), but they're slow and charge you just to host it on their page. Try local, FB marketplace, eBay, your own FB or Instagram specialty page, and physically get in front of the people who will need it.

Hope to see a progress thread start. Have a great day!

 

[100k]

What are you trying to make?

You don't need to go into the exact details and your USP. But if you could give us an idea that would help like.... "software to help restaurants manage their hiring process" or.... "a thingy-ma-jigg to help drivers manage their fuel consumption better - the app/device will automatically help car drivers save 30% on their fuel usage."

But, to answer your question - yes, it does make sense and it is possible to make a MVP version of your product to prove the concept and prove there is a demand for the product - possibly even use it to raise capital.

So /// hell yeah... go for it.

 

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[sotomo]

PS. Branch out bigger than Etsy. They are good for homemade (or were), but they're slow and charge you just to host it on their page. Try local, FB marketplace, eBay, your own FB or Instagram specialty page, and physically get in front of the people who will need it.

Sounds like good advice. I like Etsy, but what really matters is where the customer are. Thanks!

 

[sotomo]

What are you trying to make?

You don't need to go into the exact details and your USP.

I have two ideas. First involves a product that will help gardeners maintain the health of their plants. Second involves maintaining sanitation and proper levels for home brewing.

I really do try to break it down in terms of speculating profit / time to make each unit. I would hope to make at least $50/hr and then increase from there.

 

[100k]

Create a MVP - prove that it works, make a video that describes the problem and demonstrates how your product solves that problem. Then offer people the opportunity to pre-order (use FB ads or Google adwords) get as many orders as possible, and if its worth moving forward with the project - then hire someone to manufacture the product for you in a "small" quantity.

 

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[OldFaithful]

Does that make sense? Or if I start making the product by hand, is moving to mass production hard to do, even if I have a patent, considering patents are all but useless in many cases....

IMO, Don't worry about the future production issues...get the first units built and sold. Then worry about the next few units, but improve a step. Repeat.

If you continue to have sales, you'll get to the point of mass production. For now just focus on the tasks at hand.

 

[ThirtyOne]

For something like this, I'd:

1) file a provisional patent, forget about an actual patent
2) if the thing is an incremental improvement upon an existing product, I'd consider pitching it to an existing company for a licensing deal (your provisional patent is important here)
3) if it's a vertical improvement (as in, a category creator) in an industry, I'd then test demand for it (your provisional patent protects you here too) via the method @100k mentions above
4) if it's a dud, move on.
5) if it's a winner, take that to investors or sales channels and show them your pre-sales, the idea, and patent and strike up a deal. part of that deal should probably be they pay for the actual patent (around $20k, btw), and some kind of up front capital.
6) start fulfilling orders and taking more. Act, Assess, Adjust and HUSTLE. It's gonna be a long ride, but depending on who you are, it could be exhilarating and well worth it.

The goal is to minimize up front costs so that you aren't bleeding money before revenue. Also, read MJ's books as fast as you can to get the big picture and then go back and reference where necessary.

 

[garyjsmith]

As someone who is getting into product design, what are the benefits of a provisional patent? That you have a year to proceed with a regular patent?

 

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[ThirtyOne]

As someone who is getting into product design, what are the benefits of a provisional patent? That you have a year to proceed with a regular patent?

Provisional patent protects your idea from others, including yourself. Patents are greedy suckers in that its whole purpose it to disallow anyone else from doing an idea, but the person who filed the patent.

Others: If someone sees your idea and tries to take it to market, you have proof that you had a patent pending so you can sue them later (once you have an actual patent) and prove that you are the ONLY one who can execute that idea legally. The provisional patent establishes a date when you became the only one allowed that idea.

Yourself: You can't patent something that has prior art (meaning it has been shown publicly in any way, including an MVP to test demand for said idea--do that without a PP and you're outta luck; you can no longer patent it).

And then, as you said, there's the year they give you to file a MUCH more expensive patent ($60-130 versus $10k-20k). That year is there to prove demand, get sales orders, strike a deal so that poor startups can get some capital to pay for the actual patent and get to market.