So what is an idea really worth?
So everyone seems to be looking for that million dollar idea and why not? We would all like to be successful and what better way to do it than with your own product and brand. A buzz has been created around this idea more recently due to the help of crowdfunding campaigns such as Kickstarter and Pozible. These platforms have made it possible for the average Joe to develop and launch a product in local and global markets. But what does it take to take to develop a product and what is an idea really worth?
We have people approach us here in Melbourne all the time with new ideas they would like to develop and take to market. Some of the ideas are fantastic and some are well, just weird. Some will be highly successful and some will never see the light of day. So what is it that makes one successful and one not and what can be done to help the odds? Below we take a closer look into a few of the key aspects of product success.
Path to Market
The path to market forms the vision of the product and defines the means by which it will get there. Typically there are two directions this can take. The first is to do it all, develop the product, set up manufacturing and organise and manage sales and distribution. This is certainly the hardest path to take but is also the most rewarding. The second is following a sales or licensing model where the design and intellectual property are either sold or licensed out for a fee. Traditionally this is the easier route but does require IP or protection around the product to ensure the idea is safe.
Funding - understanding the costs
The development of an idea into a product will cost money and a lot more than most people would think, whichever path you take. But having a good understanding of the costs involved and how these will be managed is the key to success. Whether it be tooling, production and supply costs or development and patenting costs. Understanding what's involved, how it will be funded and allowing for variation to the plan is the key.
A product is nothing without a means of getting it the people who want it. Just when you thought you had done the hard yards of developing and making the product, the hardest part is yet to come, distribution. Finding suppliers who are willing to take and stock the product is the challenge. Most of them have so much power these days they define the price and the rules and if this doesn’t fit with your model then forget about it. Although a product that sells or has the potential to sell will be welcomed everywhere.
iLid - Bayly's first successful Crowdfunded project