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.

After inventing something, you will likely explore getting it patented. The reasons are most business copy someone else, they sell it better or cheaper because they copy. If you have a patent it is possible to sue and collect money from the copycats. The patent laws were changed and it is worthwhile to patent sooner than later. When you get time to sell to retailers – sue the copycats and many retailers will go with you because you have the patent. Another reason to have a patent is the patent has value, you may not be the one to take something to market – you can licence it or sell to someone else and receive a royalty on each sale.

Pitching your idea to investors and retailers will be something you need to get good at. The perfect pitch means its is precise, concise and enthusiastic.

1. The first sentence should be short as possible but highlighting 3 top selling features.

2. Buyers hear many pitches and since they are still in business they are smart, savvy and expert at summing up a product’s potential at a quick glance. Use humour to engage the buyer. Your body language will be read, the person wants to do business with you for your product and with you the person – they want to know you know what you are doing.

3. Lori is big on enthusiasm. When you love your product, people see that and then they wonder why you love it so much, and start to see what you see.

4. You will be asked questions – answer them. You cannot over prepare for pitch. You will need to know your numbers down pat. If you do not know, do not lie, tell them you will get back to them. Attitude will be what the pitchers are looking at, as well as how well you know your business and what could change. Part of what you are pitching is yourself, a buyer may love the product, but not you and since you are the one who has to work with the buyer, you need to show you can work with and for the buyer. Remember most of the time, he/she has other options try to make it easy for both them and you to say yes to working together.

If you decide you want to manufacturer the idea, there are more hurdles to cross and it means you decided not to allow someone else to do it. Your early editions maybe local, but in today’s world some of it will be away from the local area, it will depend on what items your product is made from. The biggest driver is upholding your standards of quality and safety while keeping your price point to a level consumer will buy it.

The first thing will be to look to companies which manufacturer something similar to yours. They have experience, the machines and likely produce a variety of product lines. It would wonderful for you to tour the factories, but hiring a representative also works well. Manufacturers typically ask for 20-30% down with the rest due upon shipping. Once it is shipped it is yours, it needs to be inspected to accept, fix or reject before shipping.

Once the product is made it needs to be packaged – more decisions to be made. If it going to be on a retail shelf, it will have to “sell” itself or stand out. If this is not your strength, ensure you have good designers otherwise it will show. A good idea is for you to have a finalized sample, your supplier to have one and that is the standard the rest of the production has to make. Similar to every industry once the item goes into production, there will be hiccups along the way. The packaging has to meet government regulations as well as your shippers expectations.

Linking to dividend paying stocks, Lori Grenier’s book outlines many of the processes involved for companies. In today’s column financing and manufacturing, there are many moving parts and all of them are presales or no revenues coming in. You need to access money to manufacturer to sell, which is why there is many things that can go wrong or go right and make everything worthwhile. By buying shares in a company which already makes a profit in consumer goods, it is easier. The companies go through the processes and part of the reason they can make profits is the systems they have in place which were built up and tried over the years. Understanding the process allows you to pick the best company.

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