Patenting a product, a brand or an invention sometimes seems to be a truly long process. It’s not as easy as it looks like and it requires a lot of nerves and patience. And, apart from that, in order to comply with it, it’s necessary to meet a series of technical requirements. Too much work, right? But the thing doesn’t end here. Obtaining a patent isn’t synonymous with success or immediate profitability. From the moment it’s obtained, you have to start “selling” what you’ve registered and, in many cases, you need to start fighting against those who pretend to plagiarize the product.
Well, not only is it complex and challenging – it’s also an expensive experience. Various costs that tend to appear during the process might even exceed thousands of euros. This amount includes many things, like, for example, the patent application fees, the State of the Art Report rates, the prior examination and concession fees. The expenses of legal advice by patent professionals and taking care of patent laws and copyright, too.
And, as already indicated, in the case of obtaining the patent, the next step should be to obtain licenses and other protection resources, which also considerably increases the amount of money spent.
These things require time, dedication, investment and many hours of study or advice. And when you have an interesting and quality idea that seems profitable and which gives super cool results, the thing is clear. We need to get to work to get the money to finance it. There are hundreds of inventors that come up with marvellous and innovative ideas every day. They undertake a project and put all their effort into moving it forward – but not everyone possesses enough financial resources to continue.
So, how should you do it in case you’re not really a Rockefeller, but you truly want to make some impact and bring success to your concept? Well, let’s find out.
Ask your friends and family
In the case that little capital is required, a good solution may be to request some money from friends and family. It’s the easiest and, usually, the most economic way to achieve it, but the amount and the form of return will depend on how “ambitious” the project is. You can always ask them for a loan or offer them to be a part of your concept in exchange – if they want so.
Although it’s understandable that it’s not the most comfortable option in the first instance as it’s a delicate matter to talk about with your loved ones, it might work. Especially if they tend to support you in any way and want to help, no matter how.
And here comes another good tip when it comes to this option: make a specific and detailed business plan to present your idea to them. Show them why it’s great and why it’s worth investing. If you introduce them to a simple outline, with nothing tangible or “real” for them to see, it’ll be more difficult for their relatives to believe in the possible success of your idea. But with a detailed plan… you could easily persuade them and do wonders.
Applying for a loan might be difficult in the initial stages of an innovative idea, invention or project. However, the Internet and new forms of communication give many opportunities to inventors and entrepreneurs regarding different alternatives to finance their projects. One of these is a collective financing or so-called crowdfunding.
It’s a financing alternative that’s already imposed with great force in many regions. The objective of this is to propel enterprises with the help of an online platform. Thus, those who need to finance projects, businesses or campaigns, can search the web for other people to finance them. Whoever puts the money can do it as an investment or for the sole purpose of financing a solidarity cause, for example. In countries like England, to name just one example, this alternative has tripled in size in just three years. Here you can take a look at the InventHelp – some of their videos are full of great examples of some companies that like considering fresh ideas. So, why not to use a helping hand here?
Recently there have been particular digital portals that put people with an idea in contact with large companies from various sectors. These firms offer financing to patent in exchange for the exclusivity of the use of the invented product once the product is patented. It needs time and effort, but it’s a remarkable idea. And you don’t have anything to lose.
Partners with capital
One of the options most used by entrepreneurs is to use the figure of partners with capital. Basically, we’re talking about contacting people of your entire trust to tell them about your project in order to reach an agreement with them. This means that they would finance your business or even associate with you if it’s the best way to put up with things.
But well, although it sounds good, it’s a reality that not everyone’s willing to lend or invest in a business. Anyway, you better be ready as you’re most likely to be asked for something in return – such as participation in the ownership of your project or percentage of your future earnings. Don’t be afraid to do it – it might bring many benefits to you, but only if it’s done with care and if all important things are considered on time.
Of all the options so far, this is the most common form of financing among entrepreneurs and inventors.
However, not everyone achieves it thanks to the high demands of the banks. It’s a reality that, when you start all this, you mostly don’t really have extensive experience and verifiable income. That’s the problem with the bank – it demands from us to demonstrate credit experience and requires that the company’s already generating cash flow to honor the debt. This isn’t the best option for many, however, many people decide to choose this as their own way of coping with expenses. If you seem to fulfill the requirements, consider this alternative as well.
One thing is for sure – you don’t have to start a business immediately. Not everything should happen quickly – some things need some time. And, if you’re patient enough, but also persistent, you can save a significant amount of money.
Of course, all this depends on your ways of thinking and acting. In case you don’t mind waiting for a couple of years and you keep putting a certain amount of money aside, you’ll get a pleasant surprise once you start seeing the results. But in case you’re impatient, then you might want to consider some other opportunities and alternatives.
Another common form of financing is government credit. For some people, it’s more than a good option since it’s money that the State provides in order to support entrepreneurial activity. The only thing that you need to bear in mind and be aware of is that you won’t be the only person to request this kind of lown. That’s why this type of financing is usually delayed – due to the saturation of applications.
Some ministries offer several options through non-refundable contributions. What you need to do is get informed well and explore different options your city or state is offering you. Once you find the most appropriate option, make sure you do your best to make yourself the best applicant and win it. It must be at least worth trying.
In the end, there are numerous possibilities – you can use the above recommendations separately or just make a combination that suits you most. The issue of financing lies in the ability you have to gather information and the use it gives you at the time of the execution of your project. There’s no single formula to do it, so just use your own combination of many forms of strength on your way to success.