- designers at companies work 9-5 boring jobs. They don't deliver their best when they find themselved discouraged
Selling your idea
- show them how your idea can make them grow.
- first to market wins (get first into shelf-space)
- consumers are driven more by desire. Easier to target than B2B
Pros of licensing ideas
- reduces R&D costs
- accelerates product development
- multiplies the ideators
One Simple Idea (Book)
Manufacturing vs Licensing
Simple idea + existing technology + 3 or 4 players in the market = LICENSING
Unique idea + new technology + 1 or 2 major players in the market = MANUFACTURING
how to bring an idea to market by yourself
Study the market
- who are your customers
- who are your competitors
- what can you offer that is different
Develop your product
- Design product and packaging
- Build and test prototypes
- File a patent
- How to manufacture the product
- Regulations and requirements
- Business plan (production, distribution, manufacturing)
- Raise capital
- Licenses, insurance, employees...
how to bring an idea to market by licensing
Study the market
- competitors (major and small players)
- how does my idea compares and contrasts
- value proposition
- how large is the market
- primary customers
- potential sales
Develop your product
Prove that it is sellable, doable and valuable
- file a provisional patent
Create an idea for what is missing and needed in an existing market
- look for categories that you're passionate about
- don't judge ideas in brainstorming mode
Mix and match
pick two different objects and think how to combine them
- eg. camera + phone
- water toy + jet technology = Super Soaker
ask what if a product could do X
- eg. Netflix (what if there were no late rental fees?)
observe problems in day-to-day and try to solve it
- eg. Spinformation
- your problems might not be a problem for everyone
Choose your winning idea
Assess which idea to work with:
- focus on one idea at a time, all the way through the entire development and licensing process before picking another idea
- doesn't matter how big/small, complex/simple, unique or clever it is
- focus on ideas that will take the least amount of work and the highest possibilities of success.
- ideas should be able to be explained in a sentence. Avoid ideas that require education of the customer since that is very expensive
does it solves a common problem?
- confirmed and well defined needs instead of maybes
- the most universal the better
does it has a wow factor?
- wow consumers and potential licensees
has a large market?
- a product that can be sold by all the major retailers for that market
- it almost takes the same amount of time and effort to license a product with a big market than it is for a moderate market.
- find if the category is a growth category
- are the comparable products selling well?
- how are similar products priced?
- what is selling, who is buying? who are the major players?
- which are the trends?
uses common production methods and materials?
- how will it be manufactured
- how much will it cost to manufacture?
- get a network of experts, mentors in that category. someone who has already done it
- novelty gift
- direct response TV
Most marketable ideas are:
- evolutionary, incremental improvements to existing products
- solve problems
- address needs
- satisfy desires
which means customers are willing to pay for them
- look for small changes that make a big impact
- audio recording, notepads, sketches
- dump all product ideas into a repository
- use Evernote
- serendipity might happen in the shower, while driving, on an airplane, etc. So be ready to take those notes.
- look at things with creativity and wonder like you did when you were a child
- passion drives creativity
- look at things in different ways and angles
Awake sleeping dinosaurs
- find products that have been unchanged for a long time and make a simple change.
- eg. laser tag, denim bags, alien guitar pick
a log of your ideas and the process of evolution.
- it helps prove that you are the creator.
- document the idea from the moment you conceive it
- document it's changes
- document final look, licensing and manufacture.
- use a separate logbook for each of your idea.
how does the idea fits into the market
- is the idea isn't unique? the market might be saturated
- are there are No similar products? there might be no market for your idea
- check the top manufacturers
- they might post their price lists
record and take photos of your findings
- small details that are easy to overlook
- flaws or gaps in form or function
- inefficiencies or inconveniences
- boring or outdated materials and styles
- differences in how different people would use or view the product
- unconventional use of the product
- other products that are used for the same purpose
Get Real World information. Avoid assumptions.
- visit stores to see people's reactions to products
- which markets are hot
- check emerging trends
- check websites, blogs, forums, social networking groups
- consumer magazines eg. Wired & FastCompany
- TV shows and industry newsletters that cover trends
- go shopping and ask store managers which are the hot products
- trade shows
- check which products in stores get the most shelf space
- which traits sell well and at what price?
- search in Google images and Google shopping
- Amazon search and read the reviews for similar products
Focus on a specific market
Become an expert in a micro category
- customer demographics
- SWOT analysis
- value proposition
- how will customers use your product
- distribution channels
- price (manufacturing and retail)
- how to manufacture and package your product