From my point of view, people should think about taking a step out for turning their important invention into an asset by bringing them out in the market. The inventor is usually caught with the question of what you want to do with your invention. Do you want to make or sell your invention? Or do you want to sell your invention to an individual or company who would sell your invention? Or do you want to try or license one or more individuals or companies to make and sell your inventions. Licensing may be a way for those who do not have lot of money to invest.
Cash flow comparison of Lambert and Lambert
When discussing the “Cash flow Comparison” of Lambert and Lambert, explained, the cash flow comparison shows that you go well deeper into negative cash flow when you are going to manufacture yourself, but you likely returns on investment are much higher. So licensing is more of the safer bet for those who are not independently wealthy. You can see clearly from lambert’s exemplary illustrations that the amount of money necessary to generate, develop, and commercialize is far less for those pursuing a licensing path then it is for those following a manufacturing path. Through idea generation the cost is roughly similar, but starts to diverge to significant degrees during development and even greater during commercialization.
FACE TO FACE: Steven Key and Gene Quinn:
“ QUINN: But it strikes me in listening to you talk that whether your ultimate goal may be to license this, or whether your ultimate goal is to set up a company and do it yourself, a lot of the initial steps really are identical. Do you see it that way?
KEY: Yes. They’re exactly identical. I’m glad you mentioned that. Because at the very beginning you need to say, look, is there an opportunity here? Do I have a product that’s going to work? So you need to test early. And I tell everybody, even if you want to venture yourself, manufacture yourself, or even license, try to license at first to companies. Get their feedback. Understand the good points, the bad points. Understand manufacturing. Do all the testing, even at the very beginning, it doesn’t matter. So you understand, number one, it can be manufactured. Number two, I can protect it. Number three, people do want it. And then you can determine which path you want to take. And sometimes they collide. Sometimes you can start a company and then license it later. A lot of people have done that. Sometimes you’ll manufacture and you might even license certain parts of the industry as well. So—
QUINN: If you’re licensing, too, and you have some short run success, that will help you there as well, right?
KEY: It’s the number one thing to do to take away risk.”
Whether you are going to pursue licensing or manufacturing, for the first lesson is to realize that there are no tricks to invention marketing. It just takes work. Of course, you need to first determine what it is that you want to accomplish with your invention, which should be covered in some form of patent pending prior to beginning commercialization efforts. But once you have determined which path to follow you just need to focus your efforts and attention to identifying opportunities, pursuing them and not taking no for an answer. Certainly, there may be a time that you will have to retreat and move on, but those who succeed by and large share the same quality of determination.