- Joined
- Apr 8, 2011
- Messages
- 82
Rep Bank
$280
$280
User Power: 26%
Please forgive a newbie if this is against the forum etiquette. Ill try and keep it brief.
I have developed a new item for an industry, that has never been made before. Ill call it "part A". I took "part A" to a trade show last year, in prototype form. It was functional but far from the polished piece it is today. At the show, I was met with ALOT of positive feedback. I even had two industry magazines (the managing editors of the magazines, and the usual photographers, and directors) stop by the booth, and check it out. One said it was "the most innovative idea he had seen in decades", and asked "why one of the big companies couldnt come up with it". The other said for me to make sure I had a working manufacturing infrastructure, before I released it to the public, as I would be "swamped with orders". I left the show with two open invitations to send a production "part A" to them for testing, and a magazine review. Potential sales are between a few hundred thousand, and millions, depending on the amount of speculation you are comfortable with.
I felt I had something, so I filed for a business licence, and started working out the details. I took a friend to the show, and he agreed to partner with him being responsible for the production costs. I had a 3D drawing made, and CAD drawings. I filed for the provisional patent (the full US patent will be filed on the 12th of this month) and even designed a company logo. Everything was falling in place.
Now its just falling apart. My partner backed out, sighting a growing concern over the economy. I have sent quote requests to almost 30 companies, and only had two give me a price. The rest didnt even return an email. The first was a ridiculous amount. The second was close, but its in China, and through a mediator company. The owner said he would consider a partnership, where he handled the cost of production, provided I made an appealing offer. And I havent been able to reach him for days. This potential deal scares me more and more.
The other option I have, would be to sell the patent to one of the larger companies. I have a few problems with this. First, it would be pennies on the dollar, if Im lucky. Second, I had planned to use "part A" in the next product, which would also be something noone else is doing. It would be a perfect match. Third, I have no less than three other patentable ideas, in this industry alone. I have dated drawings, and have begun working the details out. I wanted to finish "part A" first though. And there is always the possibility that they wont want it, or decide to steal it, or engineer their own.
What Im asking is this: Which is more logical? Keep working through the problems, and go into production as my own business? Or sell the IP, and possibly the other ideas too, and cash out now? I need professional advice, from people who have been down this road. Ive tried my states small business incubator, and thats a waste of time. Ive tried talking to industry INSIDERS, and "professionals", as well as business owners. Im a fabricator, not a business major. And everyone I talk to just shrugs and says "I dont know man". Or my favorite "I guess thats why its so hard to start a business, or get rich".
I feel Im on the precipice of a great change in direction. But if I go the wrong way, itll put me back in the slow lane, while someone else steals my idea.
I have developed a new item for an industry, that has never been made before. Ill call it "part A". I took "part A" to a trade show last year, in prototype form. It was functional but far from the polished piece it is today. At the show, I was met with ALOT of positive feedback. I even had two industry magazines (the managing editors of the magazines, and the usual photographers, and directors) stop by the booth, and check it out. One said it was "the most innovative idea he had seen in decades", and asked "why one of the big companies couldnt come up with it". The other said for me to make sure I had a working manufacturing infrastructure, before I released it to the public, as I would be "swamped with orders". I left the show with two open invitations to send a production "part A" to them for testing, and a magazine review. Potential sales are between a few hundred thousand, and millions, depending on the amount of speculation you are comfortable with.
I felt I had something, so I filed for a business licence, and started working out the details. I took a friend to the show, and he agreed to partner with him being responsible for the production costs. I had a 3D drawing made, and CAD drawings. I filed for the provisional patent (the full US patent will be filed on the 12th of this month) and even designed a company logo. Everything was falling in place.
Now its just falling apart. My partner backed out, sighting a growing concern over the economy. I have sent quote requests to almost 30 companies, and only had two give me a price. The rest didnt even return an email. The first was a ridiculous amount. The second was close, but its in China, and through a mediator company. The owner said he would consider a partnership, where he handled the cost of production, provided I made an appealing offer. And I havent been able to reach him for days. This potential deal scares me more and more.
The other option I have, would be to sell the patent to one of the larger companies. I have a few problems with this. First, it would be pennies on the dollar, if Im lucky. Second, I had planned to use "part A" in the next product, which would also be something noone else is doing. It would be a perfect match. Third, I have no less than three other patentable ideas, in this industry alone. I have dated drawings, and have begun working the details out. I wanted to finish "part A" first though. And there is always the possibility that they wont want it, or decide to steal it, or engineer their own.
What Im asking is this: Which is more logical? Keep working through the problems, and go into production as my own business? Or sell the IP, and possibly the other ideas too, and cash out now? I need professional advice, from people who have been down this road. Ive tried my states small business incubator, and thats a waste of time. Ive tried talking to industry INSIDERS, and "professionals", as well as business owners. Im a fabricator, not a business major. And everyone I talk to just shrugs and says "I dont know man". Or my favorite "I guess thats why its so hard to start a business, or get rich".
I feel Im on the precipice of a great change in direction. But if I go the wrong way, itll put me back in the slow lane, while someone else steals my idea.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
