So, you have an idea. You realize that the world is in dire need a specific solution to a specific problem and more importantly you suspect that they will pay you for your proposed solution. Every potential innovation starts this way. It begins as an idea, that in turn has details that in turn are represented by numbers (costs and revenue). What do you do next?
Sometimes it can be as easy as A, B, C.
Step 1 – Assessment. After the invention or idea of a product do an initial market and financial assessment and think about the technical feasibility associated with developing the product.
Step 2 – Business Decision. In preparation for the “go or no-go” you may want to conduct a market study and market snapshot – talk to potential customers about their willingness to purchase your innovative product for this price or that one. Then conduct an economic feasibility (5 year financial plan) to determine the relationship between costs and revenue. Then take a step back and reassess what you think you know.
Step 3 – Capitalization. You will need a prototype and a strategic marketing plan to explain to potential funders (internal or external) why your business case is sound and why they should decide to participate with your venture. Then you can approximate some valuation of your company and get ready for a series of investor pitches.
Once you’ve secured investment, initiated production and are actually delivering value to customers it is probably time to start the process all over again in an effort to beat the competition to the market and diversify your offerings.
If you need additional assistance around bringing an innovation to the market please contact us here in Middlebury, Vermont. We have a great opportunity for entrepreneurs and would-be entrepreneurs to explore the options around commercialization and we can help you efficiently navigate the process.