One thing many first-time inventors forget about when they think about how to create an invention is that coming up with the idea is just one small part of the process. Mentally preparing yourself to execute the idea you have decided on will be your next move. Do you understand how you can build/direct others to build your invention?.Are there already existing products in the market.The conceptualization phase is where you’ll really understand your invention’s potential value. If you can get positive reviews from customers, even better. That way, you can sell units after product prototyping to help prove that your product has traction in the market.

Thus, in addition to the idea itself, you should also consider how to create an invention prototype. Whichever option you choose, these companies are looking to mitigate risk. Essentially you are selling the rights to your idea. The lump-sum choice gives you a one-time payout from the company that is purchasing your idea.

The standard royalty rate is between 2-5% of the gross profit the company receives. While royalties may sound enticing, you may be acquiring significantly less than if you were to market the invention yourself. The second option of licensing leaves you with the choice of receiving royalties from the company you end up selling your idea to or receiving a single lump-sum payout. Hard work will eventually pay off if you do decide to go this route. This enables your invention to have a higher success rate with a higher payout, but also means a lengthy process is ahead. If manufacturing and marketing is the path you would like to take, be prepared to become an entrepreneur and build a business based on your idea. These are factors you will need to think about to know what’s right for you and your lifestyle.

Will you license for royalties or a lump sum?.

Will you manufacture and market your invention on your own?.

Thoughtful choices must be made about your idea first to begin the process of development. Every great idea starts with a structure to be successful. If you’re reading this, you might be thinking about how to begin creating an invention.

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