Money is difficult to come by these days. Banks aren’t lending and venture capital isn’t exactly flowing. It’s a hard time to raise the large sum of money required to start a business around a product idea. But the challenging economy has created opportunities for inventors to succeed as well. The economy has also made large companies that much more desirous of new, innovative ideas. In such a competitive market, difference is everything. The phenomenon of open innovation continues to flourish as diminishing funds are available for corporation’s research and development departments. And that’s why licensing ideas from independent inventors is more necessary than ever.
Licensing is “recession-proof” inventing because it serves both the interests of the licensee, the company, and the licensor, the independent inventor. Companies don’t have to spend a dime on your product until they decide they really like and want it. You’re able avoid investing tons of money into an idea that might not ultimately work out. Furthermore, most companies will have the mean to distribute your product more effectively than you could on your own. Although the finances required to bring a product to market may be massive to an individual inventor, they are much less so to a large corporation.
Many people regard “angel investing” as the ultimate goal. But in reality, even if you’ve received a large sum of money, you’re still required to do all the work yourself! Licensing allows you to rely on the expertise of companies, who will know how and be able to develop, advertise, and sell your idea. Please, consider licensing and collecting royalties from your idea. This isn’t to say that licensing is easy – it isn’t. Getting a company to commit to your idea is challenging. But in this economy, it’s a much less risky endeavor.
Stephen Key is a successful award-winning inventor who has licensed
over 20 products in the past 30 years. Along with business partner
Andrew Krauss, Stephen runs inventRight,
a company dedicated to educating inventors about selling their ideas
and the skills needed to succeed. You can listen to the weekly radio show on inventing. Get In The News, list your invention to have media outlets find you for news stories.