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Creating Business Plan to LICENSE invention - Need Assistance.

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Creating Business Plan to LICENSE invention - Need Assistance.

Post  netscaven on Fri 3 Aug 2012 - 18:02

Greetings to all and thanks in advance for all assistance given.

I have a provisional patent for a kitchen appliance [variable coffee machine] that myself and friends are developing. We are in the process of writing a business plan to obtain funds for creating the prototype and then presenting to various companies/groups with the intent to license. The issue that we are having is related to the uniqueness of writing a business plan 1] for an invention and 2] with the sole intent to license. With that in mind, here are some of the questions that have come up:


1] In writing the financial portion of the plan, are we only to focus on the costs associated with creating the prototype and marketing to perspective licensees; or do we need to also include projections for the costs of manufacturing and selling the product?

2] In the market analysis section, is it sufficient to only discuss the various ways we intend to market to potential licensees; or do we need to get into marketing plans towards consumers?

3] Are there any sample invention (to license) business plans available?

Hopefully these questions explain the dilemma that we are facing.

netscaven

Posts : 1
Join date : 2012-08-02

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Business Plan

Post  Admin on Tue 7 Aug 2012 - 21:24

As you pointed out writing a business plan seeking investment for building a business around the product is different when you are seeking to license the product. You may want to take a look at exactly what you need to get the product in front of a company. Some require a patent, others require a working prototype and some only require drawings explaining the product. You want to see if the expenditure is worth the return. Does doing all that work pay you any more return than the next person that does not do any of the same things you are doing?
You also have to remember that projecting manufacturing costs is only good for the company you gotthe qoute from at that time. If you license to a major company they will go to their resources for the qoute which will be significantly lower than yours. So your initial figures could actually scare a company if they are very high versus what they would expect them to be.
Do as much research upfront into what the companies you want to approach require before spending yoru money and time getting things together you may not need.

Admin
Admin

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