I'm young and I have an idea for a product, where do I go from here?

[michael117]

EDIT-- Oops, this should go under business planning! Could a moderator possibly move this? Sorry.

Okay, so I came up with an incredible idea for a product+service not too long ago. I'll be 18 in January, so I'm obviously inexperienced in the business field, but have long wanted to create a business or website. My product is a technological product and I would really like some advice as to where I should go from here.

So here are some problems and solutions I've been thinking about...

I know I can't do this alone, but I don't know anyone or have any serious friends who could help me kind of organize this and am really not sure who to trust on this basis. I live in Texas and I would need someone local, but don't know how I could find someone to help me. Should I file a patent and wait until college to find someone in similar classes as me or in an entrepreneur club?

I know I would need a patent soon because I've been seeing a lot of activity in the area of my product. How could I go about getting a patent with extremely low funds? Where should I go? Where online can I file this? I also see a patent as a way to ensure that if I was to partner up with anyone, my concept and product would be protected so they could not claim to coming up with it. Also, do I need a working product to file for any type of patent, and which kind is recommended for my situation? How much money do you estimate it would cost?

When should I file to become an LLC, or at what stage? It costs somewhere between $300-400 in Texas from what I can remember when checking a couple years ago; how much additional money do you see as being necessary following this to starting a business?

How could I get investment into my product? Would I need to have a working product or prototype to demonstrate? What type of investment is recommended? At what stage would I need to get to before I should consider seeking venture capital?

I am familiar of one company (and probably more with a few minutes of searching) that would truly benefit from my product; should I approach them to try to partner up or have them help develop my idea or put it into motion? How best could I get their attention if I wanted to do this? I'm somewhat afraid of heading down this route because I fear losing any independence and losing control of my idea to someone else who would make it big instead of me. Should I approach them on more friendly terms after filing for patent to see if they possibly know any person who would be willing to do this venture with me (they are a small company and very laid back)?

Since I'm very young, I only have about $2000 in my bank account with a small part time job I only do on the weekends and make slightly above minimum wage. How could this money best be spent to perusing the development of my product? Do I have the right ideas (filing for patent, starting LLC, etc) to follow through with my product and in what order or what changes would you suggest?

Sorry if it is a lot of questions and if I seem very ignorant, but I've been thinking about this and real feel the urge to pursue this as it could be something big. I would really appreciate any responses. Thanks.

[jg_macarthy]

listen if all you have is the idea then you are going to find yourself in a tough position. If it is a product you are going for of course you need a prototype. If you are looking for funding you will need a business and marketing plan as well. You also need to see how feasible your idea is. If you are just bringing an idea to the table do not waste your time trying to contact companies, your not bringing anything to the table that they will pay you for. Your young and have alot to find out about how this process works. I would refer to polkadotpant's posting about needing an NDA. the answers to her post will be relevant to you,

[michael117]

I understand, but I'm asking about which step would be best to go with from here. If I want to go through with this, there has to be some decisions made and I'm asking about those. What should I do after the idea phase?

Also, creating a true prototype would require me knowing some serious engineering knowledge or at least knowing how to do some serious software development to make this all work. I think I would need to find some people to put this together but I'm not sure where to look. It will take a bit before I could make a prototype, so I would like to know what to do so I could from here?

[akula]

Welcome to ye!

ok...i'll commit to your case if you do the same

give me a few reasons which indicate that you are the right person for the particular opportunity and that you are serious about pursuing the said opportunity

I'm basically looking for indicators like "My father works in the industry", or "I'm from a poor neighborhood and I have no other choice other than entrepreneurship", or "I have a religious belief that starting this business is my destiny" or "I want to help people", ...or some other indicator which tells me that I'm not wasting my time with you, and that you (as opposed to another person) are the right person to commercialise this opportunity.

If you want me to care about you, who you are, and what you want to achieve, I need to believe that you are engaging in entrepreneurship for good reasons

so....why do you want to do entrepreneurship?

It's simple, if you do not want to participate in a two way conversation about your future, and only want to leech answers - go and buy a book

[Nigami Enterprise]

I understand, but I'm asking about which step would be best to go with from here. If I want to go through with this, there has to be some decisions made and I'm asking about those. What should I do after the idea phase?

Also, creating a true prototype would require me knowing some serious engineering knowledge or at least knowing how to do some serious software development to make this all work. I think I would need to find some people to put this together but I'm not sure where to look. It will take a bit before I could make a prototype, so I would like to know what to do so I could from here?

Welcome, Your in a pretty tough position one which i was in a few years ago. Don't even worry about a patent. Why because when you don't have any money they are just a peice of paper. Imagine you put all your saving's into making a prototype and getting a patent only to find that someone has exactly copied your idea yet you can't do anything cause you can't afford the $100,000 + in legal fees. My best advice would be to keep the idea to yourself for the next couple of months mayb even a year and research like nothing else into it build basic prototypes to prove it will work. If after a year you arn't bored with the idea or havnt discovered its already out there then its time to start investing into it.

Now it really depends what your product is you don't always need prototypes made they can do anything on CAD now days and you can get a rapid prototype for about a grand. To stop your idea being copied get it broken down into two different products for example if you had a new drink bottle with a new lid. Get one company to design the lid and another company to do the bottle. Also look into getting a Provisional Patent and more info just ask. Im currently getting a new product made over in taiwan/china its a very very expensive process so you have to be sure.


Regards Mick

[michael117]

I'm not coming to "leech answers" but to just seek some advice. I've had these ideas swirling in my head and I need to pin them down to something and figure out what I want to do from here to make this work. If I "go and buy a book" I'll only get static answers to my dynamic situation.

If you would like some background, I live in the U.S. and my parents immigrated here from Poland 20 years ago and I'm not necessarily poor, but I'm far from rich as you could expect from someone whose parents came here with pretty much nothing. I've always enjoyed and been fascinated with technology and my idea will allow people to independently distribute content where there is already a market to be hit (I believe). I apologize for being so vague but I don't know how much information would be appropriate to say and I'm somewhat paranoid with my idea/plan/product because I see it as being profitable very soon. I wish my idea was as simple as a website but it requires many more resources, but I see it as one of the best things my mind has given me yet and I think I should go with it. I also apologize if my post(s) seem somewhat incoherent but I didn't get much sleep last night and I'm tired. I really appreciate any advice.

[michael117]

Welcome, Your in a pretty tough position one which i was in a few years ago. Don't even worry about a patent. Why because when you don't have any money they are just a peice of paper. Imagine you put all your saving's into making a prototype and getting a patent only to find that someone has exactly copied your idea yet you can't do anything cause you can't afford the $100,000 + in legal fees. My best advice would be to keep the idea to yourself for the next couple of months mayb even a year and research like nothing else into it build basic prototypes to prove it will work. If after a year you arn't bored with the idea or havnt discovered its already out there then its time to start investing into it.

Now it really depends what your product is you don't always need prototypes made they can do anything on CAD now days and you can get a rapid prototype for about a grand. To stop your idea being copied get it broken down into two different products for example if you had a new drink bottle with a new lid. Get one company to design the lid and another company to do the bottle. Also look into getting a Provisional Patent and more info just ask. Im currently getting a new product made over in taiwan/china its a very very expensive process so you have to be sure.


Regards Mick

Thank you very much. I see my idea as one that will be made within the next 5 years and I can see one of the big tech companies making it very soon so I was hoping to get a patent. This way I could have a situation like that with Apple and Creative where Apple never patented the iPod interface after releasing it but then Creative did and sued them and Apple was forced to get a license to produce it from Creative. I suppose this doesn't seem quite as logical anymore since I obviously don't have that kind of money at the moment.

I think I could just use a normal computer and develop some software on top of it to create any sort of prototype. After some way of getting more funding, I would then be able to strip it down into a more light device with only what it needs with hardware and more customized to fit its purpose and my vision.
I would need to find someone to develop for this thing first, though.

[akula]

Michael, you seem like the analytical type so let me give you some feedback in terms you can understand

for some unstated reason, you want to be an entrepreneur. based on some deductive thinking, guesswork and hope masquerading as reason; you think you have identified a good opportunity (i.e. you haven't applied a standardised criteria for opportunity selection).

1) there's a process that people follow to commercialize opportunities. it's called the entrepreneurial process and it consists of the entrepreneur performing four central roles; an investor, a founder, a ceo and company director.

2) You've already made a mistake where in your role as an investor you identified an opportunity based on some unstated criteria. If you did your job properly as an investor, you would have identified an opportunity which matches the investment thesis of other Texas business people like Alexander Muse. This way, by doing a good job as an investor, you would have solved your problem and had gotten in touch with people who can help you. But you didn't, because of point 3.

3) To move forward and stop making mistakes which get in the way of you being an entrepreneur, you need to apply your analytical mind and identify that your thought processes are working against you. In other words, you are too smart for your own good. You think you know what you're doing (i.e. I'm gonna get a patent), but you don't. This is just a totally expected outcome. You're engaging in entrepreneurship for the first time, so it would be weird for you to be able to make correct decisions - and totally expected for you to be making incorrect decisions.

4) What I need you to do: Switch off your mind. Your thinking is only going to confuse you. The point of learning is to let other people think for you.

Just answer the questions I'm asking you. Why do you want to engage in entrepreneurship?

[polkadotpants]

Oh come on Akula! Even I can see why he wants to do this, money & the knowledge that one of his ideas was good enough to be marketed!

Tisk tisk, not 24 hours ago you were a kitten; you wanna watch that dodgy shrimp eh?

Let someone else think for him?! I disagree with that one love - this idea is like his baby, if he has virtually no imput on the thought process how could he claim to be it's daddy so to speak? It's worth remembering that some people actually want to be in charge of their own ideas despite the hard work looming. Not just sit on their backsides & hand over what they believe to be a cracking idea!

Michael117: Definately see my thread, I'm pretty much in the same situation as yours & got some really great advice. Good luck!

[chriswick]

In stead of trying to set up something out of your reach, Rethink the idea and see if you can do something with it you CAN do. Bill Gates didn't set up Microsoft over night. And he also has the ability to program software. Which led him to where he is today. Set up something you can do and show people you have the ability to make something work. Then take your business to the next level, make some aims and objectives and work at them.

Think on it, Chris

[jg_macarthy]

Your creating a product. Before you even go out and make this idea a reality search the market. Search how feasible your idea is. As you are making a tangible product and enetering the high tech indutry your chances of passing the many phases a product goes through before market exposure are slim. Think of it this way, companies like Microsoft and Apple have product line maps set up. They have release dates for iPod features for the next couple years I bet, and a plan of how they will progressively build and release these features. What I am saying is that companies have huge foresight in the market and are constantly developing and mapping their future. Especially in the Tech industry the inventions released in the next 5 years are going to be extremely advanced and the possibility of a sole proprietor entering the market will probably be left to high tech types of people. It will take you years to develop this idea, realize how quickly the high tech market developes. The costs to enter this industry are enormous, especially where you have no engineering skills. You must understand you are about to undergo a huge risk, and have a substantial amount of business planning and research ahead of you before this idea becomes a reality. Imagine you forego full analysis and push this product too hard, you do not want to be in substantial debt at 25 because of a poor decision you made as a KID. Start on some serious analysis conerning your market and your business plan. As this is a tangible product, you will be facing a high amount of risk starting this venture. Break down the criteria of the product to the "t". You need to separate your bias that everyone starts with, which is that your idea is awesome and it will work. You need to research the feasability of your idea, as a marketing person I can say very few products make it past this stage. Like I said before look at a business and marketing plan. They are a mapped out business startegy. Business is war and these are your strategized war maps. Your young and you have great ideas I am sure, but you lack the business framework which is needed to guide people in their ideas, this will come with age and education (Go to college!). Be careful and think this through, high tech market is probably the most dangerous to enter!!

[Sam Barona]

And there was I thinking that there was hope for you Akula. Give the boy a break.

He might not have the training to use business best practices, but something tells me that when that was the case with you, you didin't let that stop, or even dissuade you either.

Now, best advice thus far goes to Nigami. Although I know of a few lawyers that would jump at the chance to fight a patent case on your behalf for a split of the profits (if you had stron IP in place, etc). Isnt that the case Akula?

My advice? File that patent fast! I have lost the boat on a number of occasions because someone beat me to the Patent Office. It is only expensive if you use IP attorneys. There are cheaper ways to do it if you are willing to do the research and the graft that the patent attorneys charge for (as well as the technical drawings required). your first point of call is the patent office. ask what is officially needed to file a successful patent application and don't be fobbed off.

In order to trust people, well, this is business. Dont trust anyone!
If an NDA will help you sleep at night better (as it offers some protection against IP theft) then contact Polka Dots; it is my understanding that she enought of them to open a legal stationers specilising in NDAs.

Dont bother with the company registration yet. You don't need funding at this stage and you are not expecting checks either. Having the patent under your belt, means that you have intellectual property (an asset) that you can trade for money to someone who sees the value of the property you own.

If you are looking for partners of the business kind, then a company will facilitate the process, since the patent ownership could be transferred to the company's name, and you can give shares in exchange for funding, services, etc. to people who recognise the value of what you are doing.

Venture capital is a VERY expensive route of financing. try to bootstrap (do everything your self) as much as you can, and rather than VCs, who tend not to provide seed funding (what you need), go to the Polish community, your mummy and daddy, your friends, their friends, their friends friends, etc. FIRST. when you have exhausted all of these (remember you are not asking for handouts, you're presenting them with an opportunity that they may, or may not recognise); then search for funding from government, or awards for young innovators; then seek for Angel networks. A good angel should steer you into safer ground from there.

If you can get the interest of the company boss you mention (after you've got your IP sorted out) then you can ask them what they think. Persist, and they may just turn out to be the angel you're in need of. IDeal, because they hae industry knowledge and contacts, so they will recognise better if the idea is woirth pursuing, or not.

If the idea is to do with Audio, or Vision; then PM me. I might be interested.
If not, good luck.

Sam

[ALX]

Good luck man. I hope it turns out great for you.

[Sam Barona]

PS. JG's post is right in a lot of respects, but making too much noise about others. I know, for example, many other businesses that are far riskier than High Tech (I come from Colombia - say no more).

Furthermore, he is talking about things that are perhaps unsuitable. No one here knows what your product is, so that stops professional people from sharing more relevant advice.

Yes, companies like Microsoft do have technological blueprints that spand up to a decade (MS and Oracle and others get together to do this every four years) and on which they chart when certain technologies will reach certain points in their maturity, which of course helps them to chart their own releases accordingly, or to plan their investment strategies better. (I digressed).

However, there are many examples of technologies that disturb the giants, and in some cases, even replace them. As he mentioned in his own argument, it is a volitile and changeable market, and as such, difficult to predict with certainty. There is a report from harvard about how successful revolutions happen (and strategies for stopping them) that will be of great relevance (I will post it when I get a chance to find it).

I dont agree with his assesment of the timing he believes it will take to develop your idea; again, its really about what your idea is. Lastly, about the risk again; the world of entrepreneurs is full of people who went against convention, of people who said, "I don't care what they say, I am doing this" and then took a leap of faith. Many of them without even any consideration of any of the safety procedures that are include in many of these threads (not excluding mine).

You're intelligent, make your own judgements and if you take the risks, be as prepared to take responsibility for things going wrong, as you are of taking the credit if they go right.

You CAN reduce your risk effectively by finding the right people who also believe in you; you CAN protect your self without owning half of City Bank; you CAN be successful; and you CAN fall and hurt your confidence by doing so. The question I pose to you is: can you live with that risk.

Sam

[Nigami Enterprise]

Thank you very much. I see my idea as one that will be made within the next 5 years and I can see one of the big tech companies making it very soon so I was hoping to get a patent. This way I could have a situation like that with Apple and Creative where Apple never patented the iPod interface after releasing it but then Creative did and sued them and Apple was forced to get a license to produce it from Creative. I suppose this doesn't seem quite as logical anymore since I obviously don't have that kind of money at the moment.

.

Im not to sure about the Apple/creative case study you have above. But with patents a company cant go and patent something that is in the public domain even if it doesnt have a patent. What some companies are doing now is getting a patent on a product but not realising the product to the market they then wait a few years for someone else to create the product thinking its not out yet and then they sue them for infringement on the patent yet the had no intention of ever relising it.

Just be 110% sure your idea isnt already out there or doesnt have a patent. Its easy to do a patent search yourself but i suggest when you get real serious about the idea get a pro search done for a few $$. I'v spent over 6 months working on a product only to find out there was already a patent on it.

http://patft.uspto.gov/netahtml/PTO/search-bool.html