Hi Susan,

There is a type of business relationship which seems to fit what you are talking about. It’s called a licensing agreement. It’s when someone, like yourself, has a patent on a product, but doesn’t have the money to make it, so they sell a ‘license’ to a manufacturer so that they can make the product. The manufacturer would normally pay the owner a percentage of sales or lump sum in exchange for the rights to manufacture and distribute and sell your product. This is great for inventors who have a great product but do not have a lot of cash.

Hope that helps!

Sarah
http://www.getyourstuffmadeinchina.com

Sarah

i see you posted a link to the site?????????????/

Susan, here is a link that might help you. It will explain licensing agreements better than I.

http://www.inventorresource.co.uk/LicensingAgre…

The site is UK based, but the US legal system is based on the british system so it is still very helpful.

Robert, I suggest if you have anything helpful to say to Susan you say it and not high jack her thread.

Susan
i will apologize to you.
this is your post and you are looking for info sorry

Thank you for the information, Sarah.

I’d prefer to have the product manufactured on my own and take it to market myself. I’m hoping that my lack of start-up funds won’t put me in a position where licensing is my only option. All it takes is money, I suppose… and a good product idea.

Susan,

You can do that….people do it all the time. Step one is to educate yourself on the process involved by reading the links here on EN, and you may find some very helpful information on the new inventor’s library site http://theinventorsmentors.forumo.biz/forum.htm as well.

Let me know if you have any questions.

Mark

You can do that….I had two guys with MBAs that both started 3 companies that they took public. They both operated their offices/companies right in midtown Manhattan. They were going to be my partners and we were going to start a big company featuring my products. One guy’s wife and son got terribly permanently ill and the deals broke off…sadly.

I was too much of an entrepreneur rebel for them too as they wanted to do all “by the book” as people with masters in business administration are taught to do. I was going to be the “mad dog” on their leash so they can control me because I’m the type of dog to chase the tires of a city bus to try and bite …and one day I would get run over.

They had start up capital avialable of about 2 million; easy access to…but investors would then get half of everything. I said wait a minute…then we go get a manufacturer…bring them blockbuster products…and they get away winning without putting skin in? No way!

My advisor partners said that is the way it is and said I could not use the manufacturer as the investor too. I also started the disengagement in ways with them too. This is the way I wanted to go BUT…I offered to roll up my sleeves and sort of be an employee to my product. I had marketing plans, interested customers and was put in charge of all marketing and some other duties I do.

The manufacturer put up the product, ships, takes the calls, packages and I do the marketing. We split all profits. It can be done….but not if you are only willing to sit home and only go to the mailbox collecting checks.

This works out well for me as I have my hands on the wheel too. When volume picks up I will also be working in management for manufacturing helping out too. I am much more satisfied, enjoying the process with this kind of hands on deal that may be a one of a kind unique inventor deal…but it can be done….but you gotta love marketing I think to pull it off to make yourself more valuable in this type of deal….and you will certainly need a U.S. manufacturer to work this close of a deal….but it can be sweet, safer, and many times more of a payoff.

Thanks for your input, Ron and Mark.

I made contact with a plastics manufacturer that’s located about 45 miles from my house in the midwest. I’m waiting for them to return a signed Non-diclosure Agreement so I can discuss the project with them in detail.

This is definitely going to be a hands-on venture for me. I would lease warehouse space to house inventory and handle packing/shipping. My husband would eventually run the business with me. We could also hire additional help when the time comes. Right now I just need help paying for the products and packaging so I can get the ball rolling.

By the way, I own an online business selling paperweights, so this would be a larger-scale version of what I’m doing right now.

Something I need to look into further would be a Small Business Administration (SBA) loan. Special loans may also be available for woman-owned businesses.

I’ll definitely approach the manufacturer to see if we could enter into an arrangement that would benefit everyone involved. As long as they like the product and see its potential, I have strong hopes.

Susan,

Since you have some background in business you may want to look into developing a “Share Equity” deal to get your product to market. Often it’s the cleanest way to get a product on the shelves and you can do it without any money invested of your own.

Mark
http://theinventorsmentors.forumo.biz/forum.htm

Susan,

I just wanted to add that as a new woman in business you may qualify for a grant through the SBA. I qualified for one here in PA but it wasn’t enough to cover what I need. If I don’t get a licensing deal it’s good to know that grant money is available. If you decide to contact the SBA ask if they have a grant program available to you. Where I live I had to agree to have my products made in the same county that I was getting a grant from so I’d not be able to have my product made overseas if I took the grant money. It’s something you might want to look into.

Good Luck !!!!!

Is this the same product you’re interested in producing that you mentioned in your other thread…The one that online retailers are carrying that’s "somewhat similar’ to yours that’s selling at a 50%-75% discount?