Sell through licensing your product
How you can use an established company to help launch your product or service through a licensing agreement
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. Licensing your idea can provide a faster route to market. It lets you use the resources and distribution channels of a larger partner.
Ensure your business idea is proprietary
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.
Protecting your idea legally is crucial, so:
- seek legal advice - consult with a legal expert to understand your rights
- use non-disclosure agreements (ndas) - protect your interests when discussing your idea
- obtain intellectual property protection - secure patents, copyrights, or trade secrets as appropriate.
Prove your product鈥檚 worth
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 can prove it by making a prototype or concept drawing.
If your product uses existing technology, you do not need to prove that it works. Instead, you should create a sell sheet for your idea. Instead, you should create a sell sheet for your idea. It should detail your fresh approach, new strategy, or whatever sets your product apart.
See get patent protection for your business.
Test the market
To test a potential market, your product and marketing plan are exposed to a chosen sample of the public. This is to gauge consumer reaction. The test results will help you decide whether to continue with or reject your product or service before its full scale launch.
See test the market.