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Patent It Yourself - PDF Archive

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ChaPter 11 | How to MARKET YOUR INVENTION | 315<br />

2. Prepare a Business Plan<br />

To obtain venture capital to start a business based on<br />

your invention, you’ll have to prepare a business plan—a<br />

presentation that tells all about your invention, the market<br />

for it, and how you plan to use the money. Again, How<br />

to Write a Business Plan is also recommended for this<br />

purpose. Other sources for guiding your business plan<br />

writing are the SBA (www.sba.gov), Business Plan Pro<br />

(www.bplans.com), and Business Owner’s Toolkit (www.<br />

toolkit.com)<br />

3. Distribution Through Mail<br />

Order or the Internet<br />

Mail order is often an easy way for an individual to distribute<br />

an invention, whether the inventor makes it or has it made.<br />

An excellent guide is How I Made $1,000,000 in Mail<br />

Order, by E. Joseph Cossman (Prentice-Hall). Once your<br />

mail order operation starts bringing in some cash, you can<br />

branch out and try to get some local, then regional, then<br />

state, and then (hopefully) national distributors who handle<br />

lines similar to yours.<br />

There are two principal ways to contact your potential<br />

customers:<br />

• magazine/media advertising, and<br />

• direct mail advertising.<br />

If you’re interested in the latter, order the Dunhill Marketing<br />

Guide to Mailing Lists from Dunhill International List<br />

Company, Inc., 444 Park Avenue South, New York, NY<br />

10016.<br />

You can also try to use a mail order distributor. Many<br />

mail order houses will, if you send them a production sample<br />

and they like it and feel you can meet their demand, buy<br />

your production. There are 15,000 mail order houses in<br />

the U.S. and they depend upon novelty and Mom-and-Pop<br />

suppliers, as well as large manufacturers. They’ll put in their<br />

own ads, manufacture, and distribute their own catalog,<br />

and thus are valuable intermediaries for many garage-shop<br />

manufacturers. Walter Drake & Sons, Colorado Springs,<br />

CO 80940, is one of the largest, but you can obtain the<br />

names of many others by looking for ads in Redbook,<br />

House Beautiful, Better Homes and Gardens, Apartment<br />

Life, Sunset, Holiday, etc. These mail order firms are always<br />

looking for new gadgets, and most of their products come<br />

from small firms. While many of them will purchase<br />

quantities of your product outright, some will want to take<br />

them on consignment, which means they do not pay you<br />

until and unless they sell it themselves.<br />

The Internet also provides a vast marketplace for<br />

marketing a device, but getting potential customers to your<br />

site can be difficult. One solution is to offer your device<br />

on eBay or to set up a store at Yahoo.com or Msn.com. See<br />

Section 5, Publicity, below, for other ideas.<br />

How to Get Funding From<br />

a Venture Capitalist<br />

Ari Zoldan, CEO of Quantum networks, a venture capital<br />

(VC) firm, provided some tips for soliciting VCs in a 2008<br />

issue of Popular Science. Among his suggestions:<br />

• Don’t send a letter and don’t email. Call the CEO<br />

and pitch your invention briefly. Be sure to sell both<br />

your product and your skills and expertise.<br />

• Look for a VC that will be actively involved.<br />

• Review the VC’s track record and funding.<br />

• Don’t be intimidated by VCs and never give the VC<br />

a majority control of your company.<br />

• Get the VC to sign a nondisclosure agreement<br />

(Form 3-1 in Appendix 7) and always bring a<br />

business plan and prototype to your meeting.<br />

4. Utilize Government Services<br />

If your invention is or can be used in a product that the<br />

federal government might purchase, contact the General<br />

Services Administration, Federal Supply Service, (800-<br />

488-3111 or www.gsa.gov). Tell them that you’re offering a<br />

product that you feel the government can use. They’ll send<br />

you appropriate forms and instructions. Also, don’t neglect<br />

your corresponding state and local purchasing agencies.<br />

If you have an energy-related invention, the Department<br />

of Energy may give you a research grant if the National<br />

Bureau of Standards gives it a favorable evaluation. Contact<br />

the U.S. Department of Energy, e-center (http://e-center.<br />

doe.gov).<br />

5. Publicity<br />

Publicity will sometimes be of great aid to you before you<br />

get your invention into production, and is invaluable once<br />

it’s on the market. Assuming it’s not yet on the market and<br />

you’re either looking for a manufacturer or distributor,<br />

or thinking of manufacturing or distributing it yourself,<br />

publicity can cut both ways. As stated, many manufacturers<br />

like to get a secret head start on their competition and thus

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