Say you have a product idea. Congratulations!
In a perfect world, product development should be as simple as:
Idea > Investment > Profit
Is it a high-volume sales item that will generate revenue for several years?
Is it a quick hitter sales item (toy) that rides a wave/trend?
Is it a revolutionary medical device that requires rigorous FDA submission process?
Is it a tweak on an existing product that could be licensed to a company that already makes a similar product?
Several things to consider before planning your development project:
How do you plan to monetize your idea? How do you plan to test/prototype your idea?
How much should you budget for design and development? How much should you spend on tooling/molds? How long should I plan to spend in development? How much should you spend on packaging?
How much profit can you expect once it starts selling? How can I estimate regulatory costs?
How long can you expect to have a profitable device? Where can you find vendors for all these services?
Product development is a long, complicated road.
Stay tuned next week.
I’ll tackle these questions with free tools to help you calculate your development budget.
In the meantime, read about 3 Options for Monetizing Inventions
Have a great weekend!
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