Look Like a Winner - Developing Business Savvy

Many inventors that fall by the wayside have greatannouncements. Typically you can request literature
ideas but they fail to gain the trust of the people theyfrom the companies and often literature comes with
need to help them. One major factor in why they losethe name of the local sales person. Then all you have
that trust is that they don't show they have enoughto do is call people up and tell them you are looking for
business savvy for others to trust them to deliver.an advisor on your new product. Tell them you are
This is not because the inventor's intentions are bad,willing to give an advisor 5 percent ownership in your
but because they don't show they have theidea and ask them if you can take them to lunch to
experience to understand the task in front of them ordiscuss your idea.
to execute the tasks once they understand what toStep 3: Pick a distribution channel you can penetrate
do. But that doesn't mean inventors are doomed, it justand have a plan.
means that they need to take a little bit of time to bringYou just can't tell people you are going to sell your
themselves up to speed on the market and theproduct at Wal-Mart. Wal-Mart rarely buys from a
process of introducing a product so they look like asmall one product company, especially one without
winner. You will make a much better presentation ifcommercial success. You need to instead focus on a
you follow these steps before going out to talk todistribution channel you can penetrate and have a
people in the market.specific plan to do that. You almost always are better
Important Tip : Don't ever say that you have a "can'toff starting with a specialized distribution outlet. If you
miss" idea, a "blockbuster" idea, or that you have ahave a baby item, start at specialized baby stores.
product that is sure to be taken by Wal-Mart. InsteadWith a kitchen item, start selling at small kitchen stores
just say that you have an interesting idea that youto build up success that will help you get into bigger
believe has market potential. Telling people you have astores. If you have a faux painting sponge that does
"can't miss" idea will only convince new productspecialized prints, you might start selling first to painters,
experts that you are a rookie with no idea of whatthen to paint stores, and then finally to Home Depot.
you're doing. All ideas can miss and most new productYou need a plan on how you are going to sell to the
experts talk to five to 20 people a month with a "can'tdistribution outlets, through distributors or manufacturers
miss" concept, 99 percent of which do miss.representatives, or direct sales to some small regional
Step 1: Do a professional information sheet on yourchains. To learn more about your distribution outlets
product.read industry trade magazines that will talk often about
Include these items and a picture of your prototype ordistribution, or use the contacts you've met networking
a drawing if possible.or by attending small shows trade in your areas. You
Brief product description. Why you developed the idea.can also get help from the SCORE or SBDC
Target customer: be specific about the targetorganizations mentioned earlier in the article. The One
customer, don't say everyone. For example if youStop Invention Shop also provides a service that
have a kitchen item, you might be tempted to saycreates a marketing plan for new product introductions.
everyone, but that is not nearly as effective as statingStep 4: Create a Target Customer Profile Chart.
people who buy three to five new kitchen utensils perOne of the final steps that shows you've done your
year, and buy new pots every five years. Peoplehomework is to create a customer profile chart that
want to know that you have narrowed your market.details the market opportunity that is available for your
Main product benefits. The products people are buyingproduct.
now to achieve the same purpose your product fills. (ItTarget Market Profile -- Faux Painting Supplies
is extremely helpful to have brochures, or print outsMarket Segment: High end wallpaper and paint
from web pages.) Be sure to check out an industrycontractors
directory for products and not just rely on your localNeeds: Patterned Look
stores. You can typically find the directory at tradeHow Needs Are Met: Use sea sponges and then
magazine web sites. You can find the trademake their own designs
magazines by checking Gale Research's Directory ofProducts Purchased: Sea sponges
Magazines and Broadcast Media which is available atMarket Segment: Midrange paint contractors
larger libraries.Needs: Patterned and standard look
Target price. Sales outlets, where the products will beHow Needs Are Met: Use sea sponges for standard
sold. Distribution outlets, what type of distributors orlooks, unable to do complex patterns.
manufacturers representatives can be used to sell theProducts Purchased: Sea sponges
product. If you don't know this information you can getMarket Segment: New users wanting a sponge look
help with your specific product from SCORE, whichNeeds: Standard sponge look with simple pattern
are retired business executives who offer free help.How Needs Are Met: Sea sponges
Another good source is your local Small BusinessProducts Purchased: Sea sponges
Development Center. Both of these organizations canMarket Segment: New users wanting pattern
help you define your distribution channel and also thewallpaper-type look
sales outlets where you will sell your product.Needs: Advanced patterns
You should put all this information on no more than twoHow Needs Are Met: Products not available
pages of paper. Then whenever you talk about yourProducts Purchased: None available
interesting idea you can show someone that you haveThis chart shows there is a market opening of
in fact done your homework. The brochures aboutadvanced pattern sponges that can be used for new
other products can be attachments.users wanting complex patterns. You can also make a
Step 2: Show why you are knowledgeable about yourcase that an advanced pattern sponge would sell to
product idea.the mid to small-size painting contractors who are
People always will take more interest in your idea ifunable to create their own advanced patterns.
there is a reason that you have specialized knowledgeStep 5: Have a great name, slogan and packaging
about the product area that will convince people youconcept.
might have a unique innovative product. People willPeople in the new product business consider a great
take notice if an operating room nurse creates an ideaname, slogan and packaging just as important as
for removing the fluids that are used to cleanse bodyhaving a great product. Sometimes it is more important.
cavities during surgery. That's because the personBut be sure to do a trademark search for the name
really understands the needs of the users. They willyou want to use. Many times inventors use names
also take notice if the inventor is an avowed hobbyist,that are already associated with products in the
with tremendous passion for his or her hobby. Anotherindustry and this turns out to be a major negative. IP
are where people take notice is if you are in theassociate, Eric Hanscom, can help you search and
distribution channel for the product. People will listen toapply for a trademark.
a mom who is also a baby products manufacturingSlogans and a drawing of what your package will look
representative who has a new baby product.like also show two important facts to the people you
You can still adjust if you don't have a background thattalk to. First, it shows that you have worked hard on
suggests you really understand your product. You justyour invention and are preparing realistically to bring
need to get the support of someone who does haveyour product to market. This is a big advance over
the background. For example a mom with a babymany inventors who quickly sketch up a drawing and
product just needs to find a baby store owner or athen expect to make millions. Second, it shows you are
baby product's manufactures' representative toconcerned about selling your product and that you
support the product. You can even give the person aknow that sales is the toughest part of introducing any
5 percent stake in the product so you can call them anew product. Again this shows you are aware of the
partner. How do you find people who can support yourwork that lies before you, and that you have enough
product? First, you can network with the people youbusiness savvy to possibly launch your product. For
know. Ask your family and friends if they knowhelp with packaging, contact Josh Wallace, our graphic
anyone who works for a baby stores, a babydesign associate.
products manufacturer, or is a baby productsMany inventors fail with great ideas because they
representative. Networking works much more oftendon't do their homework, which makes them look
than you might think because your family and friendsunprofessional. If you look unprofessional, people won't
together often have contacts with a relatively largeeven give your idea a serious look. Do your homework
group of people.so your idea has a chance to succeed. If you believe
If networking doesn't work attend local trade showsin your idea, don't just expect instant wealth, but
appropriate to your product and visit stores to see ifinstead make a commitment to do the work to turn
you can meet a contact. A last method is to subscribeyourself and your product into a winner.
to the industry trade magazine look for new product