Our fears hold us back, sometimes without us even realizing it. Things will go wrong. My advice? Plan ahead. Most people never plan for failure. There’s that saying, “There is no Plan B.” I think adopting that attitude is a mistake. No matter how hard we work or how persistent and determined we are, things can and do go wrong. You can plan all you want, but rarely do things go according to plan. I don’t like to be surprised. In my mind, it’s pretty simple. If I plan ahead, I won’t be surprised. I won’t be knocked off guard. So, I always look at things in terms of best-case scenario and worst-case scenario. I can’t help it. If I have a strategy, I’m able to get back on my feet and get back in the game quickly.
So let’s talk about what can go wrong when it comes to licensing a product idea, my area of expertise. Here are some of the most common fears I hear about — and how to prepare for them.
1. What if I submit my product idea to a company… and they don’t respond?
Give them time — about 10 days. Companies become extremely busy. The person you contacted might be on vacation. So follow up with another email or phone call. Be polite. Your goal is simple: To see if they’re interested. I always make sure to say, “I’ll keep calling back if I don’t hear from you.” Eventually, as a last resort, you should ask for a yes or a no. Is the company interested or not? Let your contact know he can simply reply, “Pass,” if your concept isn’t a good fit. Closure is important. Don’t wait and wait. You don’t have time.
2. What if I send my sell sheet to a potential licensee and it want to see proof of concept?
That’s great news! Now you need to prototype. If the product is small, 3D printing might work. You could cannibalize existing products. Works-like prototypes don’t need to look good. So focus on getting it to work. If it works, you’re gold. Also, these days, I recommend filming an infomercial to demonstrate the benefits of your idea. From a distance, your works-like prototype will look perfect.
3. What if I send my prototype to a company to review and it breaks?
Prototypes don’t sell. It’s best to create and send a short video that demonstrates the benefit of your idea using your prototype. Sell sheets work better than prototypes. A sell sheet will never break. It can’t be used improperly.
4. What if I find something similar to my invention/idea?
That’s probably good news. At least you know there’s a potential market for the idea. If you find a prior patent, read the claims very carefully. Identify your uniqueness. What has been missed? This insight could be priceless. You’ll either have a roadmap of what to do next, or you may determine your idea isn’t unique enough — and it’s better to walk away.
5. What if someone infringes on my idea?
You have to realize, companies are designing new products every day. Who’s to say the company wasn’t already developing a similar idea? Maybe your intellectual property wasn’t solid. Maybe they found a way to work around your protection. Or maybe they have infringed on your idea and you have a good case. You can find a patent attorney to take your case on contingency. But know litigation is a long process. Try not to get emotional. It is just business. That’s hard to do, I know. This is the game you’re signing up to play. Be smart about it.
6. What if I think my potential licensee is not paying me my full royalty?
Audit clauses exist for a reason. You should also build good relationships with the sales department. They will brag about how much they’re selling.
7. What if my product doesn’t sell?
That’s a risk we all take. The most you can do is make sure your potential licensee has a great track record of manufacturing and delivering product on time. Good customer service doesn’t hurt either. Stay as involved as you can on during development, manufacturing, and packaging.
8. What if my potential licensee misses very important dates, like trade shows and shipping?
Again, it helps to stay involved. Be helpful, but don’t be a pest. The only way to really understand their process is to ask about it. Knowledge is power! Know the dates of important milestones well in advance. Every time you communicate, ask for next steps. To the extent that you can and it is welcomed, continue to project manage your invention.
9. What if no one wants my idea?
So what? Brush it off. It isn’t a big deal. You didn’t spend that much money or time trying to sell it because you understand licensing is a numbers game. You filed a provisional patent application for $65. You hired a freelancer to create a sell sheet for a little more than that. You spent some time calling companies that could possibly be interested. Now it’s time to move on. It’s okay! You only need one yes to be successful at this. These are only ideas; they aren’t your children. So get back to doing what you do best: Creating.
Say no to excuses and yes to putting your ideas out there in 2016.
Originally published on Inc.com December 30th 2015.
