New product. Not sure what the correct path would be.

[mattman2040]

Hello entrepreneur's,
This would be my first thread and hopefully one of many to come. Ill start out by saying i have experience in dropshipping and customer service so I am very confident in my ability to execute the needs of my future buisness.
I have been out of the game for quite some time and realize that my personal and financial freedom is mine for the taking.
I have what I think would be a great product and I am antsy to contact a manufacturer to proceed with a prototype and outsourcing production.
But so many questions remain and there all weighing heavy on my head.
So here goes....
The idea was my cousins and we both work in the same field and want to partner up on this particular product. But in reality i will be the one handling everything from start to finish. From the market research to the manufacturing to order fullfillment.(Planning on using FBA as my launching point.)
I would like to create a company(sole proprietorship) and resgister a patent and trademark to that company.
But i would like to give all the credit to my cousin and split the profits 50/50. But in the future launch my own products and or services that likely will have nothing to do with him.
Is the company route a good idea?
Should I create a broad company and run subsidiary companies to sell diffrent products?
Should I register a patent pending before beginning manufacturing and who do i register a patent under without stealing his idea?

I know this a long thread but I dont know where to start and any help and or advice would be greatly appreciated.

Thanl you fellow entrepreneur's!


Sent from my SM-N920P using Tapatalk

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[David Young]

Patents are an obvious choice for protecting your IP. However, you need to look at the wider context as well. In some areas of industry the cost and time scale of the patent process are not worth the effort. You also need to consider how you will enforce the patent- as this can be costly. Your time and money might be better spent on branding, customer support and product development so customers will choose to buy from you rather than a copycat.

 

[Insaint]

The idea was my cousins and we both work in the same field and want to partner up on this particular product. But in reality i will be the one handling everything from start to finish.

But i would like to give all the credit to my cousin and split the profits 50/50.

This sounds like a very rough deal for you. Why would you do all the work and only get 50%? This isn't a partnership if you are the only one working on it. How are you going to scale if you have to give 50% of all profits to your cousin and then pay another 20-50% (depending on where you're from) in taxes? How are you going to sell the company when the new owners have to keep giving away 50% of the profits? What happens when your cousin wants to cash out or starts demanding more than 50% because it was his idea?

Please reconsider those terms before you commit. If it's a mind-blowing idea give him a few % or a small lump sum and get everything in writing. If it's an average idea, move on. Dealing with someone that doesn't want to do any work and is also a family member is a recipe for disaster.

 

[TCMD]

Patents are an obvious choice for protecting your IP. However, you need to look at the wider context as well. In some areas of industry the cost and time scale of the patent process are not worth the effort. You also need to consider how you will enforce the patent- as this can be costly. Your time and money might be better spent on branding, customer support and product development so customers will choose to buy from you rather than a copycat.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[TCMD]

Some thoughts from a hard learned lessons -- one of the first things -before you sink time or money into your product, figure out your agreement with your cousin and PUT IT IN WRITING and best if you can have a controlling interest (I dont think I will ever hire someone that I cant fire again so to speak) this could save you both much heartache - partnerships can be hard- partnerships with family can be great but they can also be a terrible disaster..

 

[mattman2040]

In your opinion what would be a good percentage for the "idea guy"

Sent from my SM-N920P using Tapatalk