Every Company Needs a Good Map

In the Wall Street Journal today (June 5, 2007) Kelly Spors discusses in her Small Talk column (subs. required) some of the issues encountered when an inventor tries to take an invention beyond the concept. This is equivalent to setting out on a long voyage. It's a good idea to find out if the voyage ahead is a good idea. As a Modern Magellan, it is important to consider that just because you can go, it does not mean you should.

Before I discuss the value of her advice, I want to bring out a point that she makes but does not dwell on. This is a VERY important point. Do not display your invention to anyone publicly. You may lose your opportunity to patent the idea if it has been displayed in public. I am not a lawyer, but I do have a patent. It was not cheap and it did take quite awhile to obtain. I understand the reluctance to spend money for an idea that may not make any.

The key here is what constitutes a public disclosure. As I understand it, showing your idea to friends and family is not a public disclosure. Sharing the idea with people who do not know you is, unless you have an NDA (Non-Disclosure Agreement, the link is also not legal advice just a longer definition) between the two of you. The safest approach is to be cautious. I have had ideas, shared them with friends who them went off and did quite well with such ideas. Money can change a relationship in ways you would not have imagined. I prefer to move forward rather than sue people.

A less expensive approach to getting patent protection is to file a provisional patent. This is not as good as a full patent but it gives you some protection while you investigate and develop the product. Again, I am not a lawyer and you should consult a lawyer, and do some online reading about the subject if you think your ideas have any chance of becoming commercial products.

I believe that a public disclosure also destroys any chance of claiming information as a "Trade Secret" down the road. Once information is in the public domain, it is impossible to put the genie back into the bottle. Ask Alec Baldwin about that if you have any questions about how difficult it is. In addition, posting the idea on a blog is a public disclosure, in case you needed clarification on that.

Kelly's focus is on discovering if there is a market for the product. This is the second most important thing to know after learning if the product can be made at a reasonable cost. She gives some very good tips that most entrepreneurs know:

1) Show a few friends and family (See caution above)

2) Talk to industry experts or trade groups. It is possible that the idea has already made the rounds and been rejected for reasons you are unfamiliar with.

3) Talk to people who invest in early stage companies. They can give you advice on the road ahead and the potential for such a product. They may also connect you to someone who can better advise you.

4) Carefully ask questions in stores that sell a similar line of product if something like what you have created would be of interest to their customers or to them.

5) Create an online survey to gauge interest. Again, be very careful about public disclosure.

I would add

6) You should first ask yourself, "If you had not invented it, would you buy it?" This is hard to do because you love your baby. You have to be objective.

7) What can you sell this for? If the selling price will not cover the costs then it probably will not work as a business.

8) Do you have the time, interest, support, and devotion to do this - a new product, brand, or company takes a great amount of each to succeed.

As so many have said - don't be discouraged if everyone does not see the potential. Don't let negative comments cancel your future. Be open to critics and willing to make changes. Most roads are not straight. Be willing to take some detours and to encounter obstacles. Getting a patent is a long process and chances are that there are things like your idea already. You just may not know about them.

People solve problems every day. The solution you have may be new or sufficiently novel to be a new product. The best ideas come from very curious events. Do take the right steps and do not get bogged down by the process. If the idea is a good one it will be worth it to do it right. That is what being a Modern Magellan is all about.

Last tip: Inventors are usually the worst people to have running a company. More on that another time....