How to Make the Most of an Idea without Any Money
Question
I have a "patent pending" on a new type of commercial resistance exercise machine. Here's the problem. I don't have the money to get a prototype built. I know what I have here, but I have no money to pay for anything. My desire is to start a small manufacturing company after the product has been tested in fitness centers. I could simply sell the rights to this for royalties, but starting a small manufacturing company (and surrounding myself with a lot of people who are experienced in the field, including management) is what I want to do as I believe that once this product becomes known it will catch on very quickly. What do you recommend for someone without any financial means to do anything?Answer
I know you say that your desire is to have your own manufacturing capability, but I think that will be very difficult to achieve. Since you don't have the funds to build the manufacturing capability (and I would not recommend that you did anyway since so much underutilized capacity already exists) and since this is a terrible market to try to raise funds, I would recommend that you attempt to license your idea to the larger, established fitness equipment companies.I would recommend the following:
- Make a list of all of the large fitness equipment companies
- Research their contact information and attempt to get in touch with their new product development staff
- Tell them a little bit about your idea
- If they are interested in hearing more, have them sign a confidentiality agreement (one is available here on NVL)
- Negotiate a royalty agreement if they are interested, if not, move on to the next company
- January 16, 2009
- Finance and Accounting
- Ask a New Question
John Ramsey January 30, 2009
Until recently I worked in an upper management position with a major commerical fitness company. If you would like, I might be able to provide some help on the how to go about points 1. & 2.
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