The complete guide for the novice entrepreneur
Quite a few people dream of inventing something and gain as a result a great financial opportunity along with lots of satisfaction and personal satisfaction. However and naturally not all of us are born to invent.
What is required of any inventor?
Inventors are required first and foremost to exercise creative thinking and see every problem as an opportunity rather than a difficulty. This is because the source of the invention always lies in the unique ability to locate a problem and find an appropriate solution to it. In order to become an inventor, thinking outside the box is therefore required, in which even the most trivial difficulties can turn into a brilliant idea in the form of an effective and convenient solution. Anyone who is able to spot certain problems that exist in the solutions found in the market and find a technology that can make any product desirable and sought after, can be considered an inventor.
Today quite a few effective and original ideas go through the minds of a lot of people however the ability to translate the same idea into the practical level is reserved for only a very small percentage of them. In order to do this one must hold great faith and confidence when it comes to the success of the invention. In the next stage, the need will arise to invest time and resources in the development processes of the idea, and this requires a high degree of willingness and self-discipline in order to act in an orderly and independent manner. And of course the independent inventor must take personal and financial risks that accompany the development of the invention.
Since many ideas do not come to fruition immediately after they have been realized into a commercial invention, it is very important to demonstrate patience, tenacity and patience alongside determination and belief in the power of the invention to succeed.
I invent! How to begin?
In order for an idea to turn skin and tendons into a product, several necessary steps are required:
Step 1: Defining the idea and knowing the market
The first thing you need to do is put your idea in writing. Explain carefully what your product offers, its benefits, how it works and more.
In addition, you need to answer the question of how it is different from other products, and for that you need to study the market you are interested in entering. Gather information about the manufacturers who produce products in the field, the required standards and approvals, the sales potential of your product, products that compete with your product and the costs that you think will be required for product development. At this point it is also worthwhile to build a basic business plan for the product by defining the target audience and marketing strategy. This step is a kind of filtering of the less successful ideas in favor of promoting the better ideas.
Is your idea original?
It is possible to perform this search independently or alternatively by free databases located on the web. In the first stage, at least, it is recommended to perform the search on the web alone, because usually in this stage, patents similar to yours will be found. If the search did not yield such results, then it is recommended in the next step to contact a company that specializes in patent search. It is important to emphasize that the reliability of the search is the result of receiving assistance from experts in the field (more on the process of examining patents and their approval, at the end of the article).
Step 2: Formulation of a concept
In the next step, you must formulate, independently or with the help of an external company, a concept for the product you have to produce. Concept means defining the work requirements of the product, along with its characteristics: ease of use, engineering form, design, weight, aesthetics, production costs, selling price and so on. You can then come up with some ideas for implementing the solution and finally identify from them the ideal concept.
Next, a technical feasibility study must be performed (whether it makes sense and whether it can be performed from an engineering point of view); Along with an economic feasibility study (which includes an estimate of its business and commercial potential).
Development of an overall plan
The chances of selling a raw idea are extremely low, and few sales are made that include such an idea. Processing the idea in order to present for sale an idea that is "worth something" involves much more than a technical thought about carrying out the idea. For this purpose, an investment must be made in the development of an economic plan that deals with profit and loss and the viability of the transaction on the part of the investors in the idea, along with detailed explanations about the product itself and the innovation it adds to the supply already in the market. As part of this process, it is worthwhile to conduct a comprehensive and comprehensive market survey at the maximum level at this stage, and as it progresses it is important to ensure that the initial concept is updated by emphasizing the uniqueness of the product.
Of course, in order to develop an idea at such a level, extensive knowledge of the subject is needed, or alternatively with the help of relevant professionals, so in the end the process of selling an idea is done only by talking crazy people who invest a lot of energy in their ideas, and do not let them sink because of the complex process The abstract idea into a real product.
Once the business concept formulation phase has been clearly completed, it is possible to start preparing a three-dimensional model for the product and its components on a computer and then take out drawings for production.
Step 3: Funding for private inventors
The capital raising phase is one of the main and most important stages in the implementation of the business idea into a profitable economic venture, but in the current period many financial difficulties face inventors and private entrepreneurs as part of the attempt to raise funds to promote the venture. The main ways in which entrepreneurs are assisted are:
Equity - personal sources of financing if the amount of investment required to realize the venture is not too high
Loans - Bank credit that includes several types of credit as follows: long-term loans, construction term, short-term and credit line. The obvious advantage of this financing option stems from the fact that the entrepreneur is usually left at 100% ownership. One of the major problems faced by the vast majority of young entrepreneurs at the beginning of their careers in the business world stems from the fact that recognized financial institutions do not give them the option to take out a loan. However, it is important to note that in the current period quite a few alternatives can be found when the competition for the heart of every borrower is only growing. As a result, we advise you not to give up in any way, even if the bank has closed its doors to you. Today there is a wide variety of funds of all kinds that come to encourage
Entrepreneurial character and activity of this kind in Israel and receive support from the banks
Turning to an External Investor Many companies name their first stages of growth by raising funds from entities that hold this interest, or in other words, investors. There are several types of investors who will agree to give money to the project in exchange for receiving a certain share of it. The different types of investors, the ways to contact them, the manner of contact, their interest, and the advantages and disadvantages of each of them must be thoroughly known before making a final decision regarding the transaction. The surest way to get financial support for the idea is by preparing illustrative models (prototypes) that should be presented to investors. The prototype is the initial model for your product and shows the actions that the product performs, the raw materials of which it is composed, the parts connected to it, the functions that exist in it, its size, etc.
(More details on ways to approach external investors and the prototype preparation process, at the end of the article).
Step 4: Production
Once the shape and operation of the product have been formulated, and a prototype has been created that demonstrates its operation, the production process usually begins.
