Profiting from the right idea is often a matter of seeing potential that may not be obvious
Companies often move as quickly as possible when they are at a competitive disadvantage.
BY DON DEBELAK
The question is not whether inventors frequently have multiple ideas; the question is which one to pursue.
Even in winning categories, some products are better than others. Here are some ways to help you to a winning formula. These principles apply across the board—whether you are looking to produce your own product, license it to a manufacturer, or strike a joint venture deal of some kind.
Look for:
Strong market potential
One such opportunity is when a new market is emerging. For example, when the scrapbook industry started, many of the suppliers were inventors and small companies that have since become mainstays of the industry.
Also, just because a product category is stale and there haven’t been any new products for a time doesn’t mean it can’t be an opportunity for you. A few years ago, wallpaper had become a stale product—and then a flourish of activity developed with faux painting sponges, speckled paint for entertainment rooms and glazing print applications.
Licensing opportunities
Companies often move as quickly as possible when they are at a competitive disadvantage. Some inventors stay in an industry, often one where they have worked before, and watch for opportunities created by new product introductions. They move to offer a product to companies that are at a disadvantage in a product category after a new product introduction by another company.
Companies with slowing growth rates can also offer a winning opportunity. A company that has led the market in the past sometimes will run out of ideas, and its growth will slow. These companies are very interested in ideas that keep their sales rates increasing.
Winning products
Once you have an opportunity, create a product with a high “wow” factor that will accelerate your product into the market. Follow these guidelines to have a much better chance for a successful idea.
- Appeal to customers with passion. People with passion know which products are available, often spend freely, and will pay a premium for products they want. High-income mothers with babies, people with beloved pets, dedicated golfers and gourmet cooks are all examples of people with passion.
- Seek clearly understood benefits. Products for which people immediately grasp the concept have a strong chance for success: a cell phone that also does email, a smart meter in your home to control energy.
- Look for total solutions. Customers prefer buying one product that takes care of their entire need. The concept of a total solution applies to new products and services. This is the core concept behind a catering business, as well as the concept behind products such as the iPad, the new generation of cell phones and Swifter, the all-in-one cleaning product.
- Help customers meet their goals. Customers buy products for their own reasons, not your reasons. Weedwhackers were a big improvement over grass clippers; those products are now owned by most homeowners. Granite countertops help customers meet their goal of having a high-end home look, even for modestly priced homes.
Inventors who have yet to have success sometimes feel that winning inventors have had good timing or have been lucky to be in the right place at the right time.
Truly, some do have luck. But inventors can greatly increase their chances of being the lucky ones by simply watching for winning opportunities and then creating their own luck.