Becoming an inventor is not easy. That spark of an idea must come from you, and you definitely do not know when that will take place. But let us assume that it does happen. Well, next what? This is when the tough times begin. You cannot rest till you make the blueprint in your mind a reality. That again is not easy. In some ways, setting up infrastructure to implement the idea is the most difficult part, mainly for budding entrepreneurs who generally do not have a clue as to how to go about it. But in the long run, it boils down to one factor – getting the necessary finance to get the project off the ground.
If you are on the road to becoming an inventor, you will be having specific financial needs. This is where you must deliberate on your future scale of operations and the extent of risks that you are willing to take. Remember, not all ideas see the light of day. And if you need financing for your idea, you’ll need to provide solid proof to lenders that it will work. That is the tough part. Lenders are by nature a cynical lot and their first priority is always to ensure high returns while protecting their investments from turning into non-performing assets.
However, if you are already in business and diversifying into a new area through a new invention, things would be different. You’ll already have a ready cache of funds to fall back on. The legendary Mick Fabar is an example. He founded Mick Fabar Constructions in 2001 but in 2006 started Green Homes Australia, a company that focussed exclusively on a hitherto untapped area of the Australian building industry. It was a unique Mick invention – building energy efficient homes. The company grew rapidly; one of the reasons being that Mick could draw on his experience and previous business financial standing to make the new venture a success.
One of the early steps that you should take is draw up a business plan. This will have exactly what you hope to achieve, why you feel that your invention will in all possibility take the market by storm and the quantum of finance needed to keep your project running till it becomes a profit generating entity in its own right. Hence the business plan must have future marketing strategies for your invention, the niche that you hope to influence and place your product in and such financial considerations as working capital requirements and cash flow analysis. Since in all probability you will not be well versed in all these aspects, you’ll do well to hire the services of a seasoned business consultant in the initial stages of business.
However, it is always advisable to make sure that you start out small and test your invention in sample marketing methods before attempting to go big. Get only the absolutely necessary people on board, ones that are more committed to the cause than their pay packets. Try to bank on your past savings only. In that case even if your scheme falls through, you’ll not have creditors lining up outside your door.