Have a Great Tech Invention Idea But No Money? Don’t Give Up! Here’s What You Can Do
Have a great tech invention idea but no money to turn it into an actual product? Don’t give up on your dream! Keep reading below to find out what you can do to turn your invention idea into a marketable product.
There’s a widespread belief among entrepreneurs that capital is a precursor to success. Yet, although it’s true that venture capital is a common denominator of the most successful companies, it isn’t a prerequisite.
The light bulb above your head starts glowing bright, but your bank account doesn’t seem to agree that you should make a new investment. What can you do in that case? Give up? Well, giving up isn’t an option if you want to become a successful entrepreneur by turning your great tech invention idea into a marketable product.
World’s most famous entrepreneurs like Steve Jobs, Mark Zuckerberg, Sam Walton, or Jan Koum have all started billion-dollars worth companies with nothing at the beginning. Take famous Steve Jobs, for example, Apple’s founder, a $260,2 billion worth company. Jobs and his friend Steve Wozniak decided to build and sell personal computers but didn’t have any money to start their business. What did they do? The two sold Wozniak’s HP calculator and Job’s Volkswagen van to get $1,500 to found Apple Computer.
Now, Job’s success maybe once in a lifetime story. Your invention may not lead to a $260,2 billion worth company. Yet, it may as well do. The point is that there’s no way to find out other than actually turning your invention into a marketable product. Here is what you can do when you have no money to turn your invention idea into a business.
Before you start thinking about ways to find money to invest in your tech invention idea, you need to make sure of two things: your invention idea doesn’t already exist, and it will sell.
First of all, you need to make sure that no one else has thought about your invention before. Just because you have never heard or seen your invention anywhere else, it doesn’t necessarily mean that it doesn’t exist already. How can you find this out? You can search for free at uspto.gov to make sure that your invention idea isn’t patented by anyone else.
If no one else has had your invention idea and patented it, you can hire a patent attorney or agent to help you patent your brilliant idea so that no one else steals it from you or invests in it before you do.
Test your invention idea
You may be really excited about your idea and think it will sell like hotcakes. Your friends and family think so as well. But that doesn’t mean that anyone else would buy one of your products. In fact, data shows that over 95% of all patents never actually make money for the inventor. So, the next step before you invest in your tech invention is to research your market and test the idea.
How do you test it? Well, you can start by conducting surveys to find out whether or not there are some people that would actually pay money to get your product. If you find enough interested people, you need to make sure that the product can be produced and distributed at a cost that will make the retail price profitable for you. What’s more, you also need to take a look at your competition if there is any.
Once you know all these details and everything seems to suggest that your product will sell like hotcakes, it’s time to figure out venture capital.
Ask your friends and family for support
The closest peers remain the best shot for many entrepreneurs to get the money they need to turn their product idea into a business.
A 2010 study found out that 5% of US adults said that they had provided funding to someone starting a business in the past three years. Of those respondents who said that 32% said that their money went to a friend or neighbor, 26% went to a close family member, 11% said that they offered to fund to some other relative, and 8% said that they provided funding to a work colleague.
What’s more, let us give you a famous example of an entrepreneur who asked his peers for a loan to start a new $524 billion worth company: Sam Walton, the founder of Walmart. Sam Walton got a $25,000 loan from his father-in-law for the initial purchase, which he used to open the first official Walmart in 1962.
So, it’s nothing unusual to ask your loved ones for financial help to get your tech invention idea off the ground.
Get an invention loan
If you can’t get funding from your peers to get your idea off the ground, don’t worry, you still have a good shot with getting an invention loan.
You need to write a well-detailed business plan to attract potential investors or financing. Details like the market potential for your idea, your marketing strategy, your idea’s uniqueness, and your ability to protect the technology, plus the financial statements, are all important for investors who might consider investing in your invention idea.
How does this work? The US government associates with banks or other lending institutions and intermediaries to offer you a loan and venture capital financing for your invention idea that you want to turn into a business.
Use a reverse approach
Another way to find funding for your tech invention idea is to use a reverse approach. What does this mean? It means that you can use pre-sales and preorders to boost your cash flow. In other words, you market your product, find interested customers, but only actually build the product after the customers prebuy it or preorder it.
This reverse approach can be more financially safe and can help you get the money you need if you can secure funding through any other means.