If you watch TV, you may have come across a show called Shark Tank, on the show people pitch their ideas of how to expand their business to 4 investors who listen to them, to see if they would invest in the business. One of the investors is Lori Greiner who specializes in products that have a mass appeal and help people’s lives, much of what is changing the attitude from why would I want it to I can not live without it. The process to have an idea and go all the way to selling it is what the book Invent It, Sell It, Bank It! by Lori Greiner, Random House, NY, 2014.

In part one, you have a great idea or an invention, the next step is what will you do with it? If the idea is something that can be sold at a store, you will begin the process of making the item. The good news is every year the process becomes easier for new inventors, however there is vast difference between a little knowledge and professionals. The world of 3D Printers, CAD design, inventors workshops, are all available to help. Take your time because the idea is in your head and you will be asked many questions. Along the way take the proper legal measures as well as learn from the professionals you are dealing with.

Once the working model is up, before taking the next big step, ensure there are willing people to pay for what you have invented or do market research. Your research will focus on 3 aspects:

1. who is the competition? what is similar? who makes them? who buys them? and how well do they sell?

2.If you have a product based on the consumer market how is it doing? what are the trends? how are consumers pocket books?

3. You have to test your invention. Do people like it, recognize the usefulness and are willing to buy?

To get the feedback necessary – the research needs to ask people you do not know. If you ask your friends – they want to support you. If you ask strangers they give better answers.

The willingness to buy is a key and at what price? how do people value your product? If you ask a large cross section of people, you will see trends emerging.

Once again there more ways to do the research from Social Media or Facebook. Part of the appeal of Facebook is people talking to people, but all the data is captured which enables you to check out the information. For example Graph Search will tell you where people live that have indicated an interest in your product. You can then refine your searches to what else in general those people like.  In terms of survey SurveyMonkey is a useful service and can easily be targeted for information.

Depending on where you live – many neighbourhoods have festivals and you can buy a table for relatively low cost and test your ideas. Pop up stores is an idea as you continue to move along. From all your research – you should have a reasonable idea of the people who would pay for it and at what price. Those are tough questions and you will need to take advice and ensure you make a reasonable profit.

To get funding to make the product – some will come from your pocketbook or line of credit. As friends and family will be interested in what you are doing, they are a source. After that – you will need a Business Plan – it explains to somebody who does not know you or your product – what is your product? how and where you are going to make it? how you are going to sell it? your assessment of the competition? why yours is better? how much money you are going to need to start and run it in the near and long term?

In your business plan – remember there will be addition costs. if you do not mention them or talk about them; experienced people will think you are too naïve. If you are reasonably successful, you will have to move from the basement or den, that adds costs? Addition costs brings risks of being stuck with overhead, it needs to be stored and someone needs to pay for it. What are the new ideas you are working on?

Financing or raising capital – first it will be yours and your family, then the circle will get wider. If you raise from friends, try to keep it relatively small and under the assumption there will be a long payback. Otherwise you will lose the connection. Banks are a source of funding; government small business loans; many towns and cities have economic development office try them; contests like Shark Tank or local Shark Tank – if some communities where people had success they operate a venture fund for local people and they are able to try to gain funding.

Linking to dividend paying stocks, those familiar with buying companies will be familiar with companies issuing shares – each time a business plan is filed and sent out to all the shareholders – both perspective and existing shareholders. Business plans in general do not change but the wording often does. If the business plans says we will be ethical, it means you will be judge harshly if you are not. All business plans contain a SWOT (strengths, weakness, opportunities, and threats) analysis. This is where people can agree or disagree with the company. For example many companies say their strength is their people, but they seem to have a revolving door of personnel, it is really a strength? The longer you hold your shares, the more exposed to financing you will become.

There are more questions than answers, till the next time – to raising questions