Preparing to sell

Sell through licensing your product

Guide

If you have a brilliant business idea that you would like to launch quickly and profitably, you may want to consider licensing your idea to an established company.

Before you find any licensing partners you should make sure your idea is proprietary. This means it is made, offered, or sold only under the exclusive rights of the property ownership of a manufacturer or seller. These rights are governed by copyright, patent and trade secret laws. You should also research potential partners and industry standards.

You should seek legal advice and use a non-disclosure agreement to protect your interests. You should also obtain some form of intellectual property protection for your idea.

Proving your product

You will need to convince a company to pay you a royalty on the wholesale of your product/service by proving it is both worthy and capable of success. You must sell the benefit of your idea and not the product or service.

Proving the worth and potential success of your product or service can be achieved by creating a prototype or concept drawing of your product. If the technology used by your product already exists in the market there is no need to prove that it does indeed work. Instead you should create a sell sheet of your idea that details your fresh approach, new strategy or whatever differentiates your product from those that already exist.

See licence your patent.

Test the market

To test a potential market, your product/service and marketing plan are exposed to a carefully chosen sample of the general public to gauge consumer reaction. The results from such a test will help you to decide to continue or reject your product/service before its full scale launch.

See test the market.