Entrepreneur’s Notebook – Tips for Turning Your Brilliant Ideas Into Big Bucks

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Have you ever envisioned an idea for a new product and thought it would be a true winner if you could only get it launched?

Of course you have, and so have millions of other people. Naturally, those ideas always seem like moneymakers to the people who have them, if only they could get the support needed to make them happen.

Over the years, many ingenious ideas have undoubtedly gone unrealized due to a lack of procedural knowledge needed to get them off the ground.

Many products and services we use daily were not originally conceived by the manufacturer or licensed owner of the product. The ideas may have been developed by people who failed to seize the moment and instead described the concept to someone who took advantage of their inaction.

How can entrepreneurs and small-business owners pursue their ideas and avoid having others capitalize on them? It’s quite simple, if they make a commitment to follow through and utilize the resources available from industry experts who provide consulting services.

At first, the list of marketing-type consultants in business directories might appear to be a mile long, and you may wonder which one to call, as the names give no indication of their expertise. With a little patience and effort, however, a simple phone call with some pertinent questions may help you quickly determine which consulting group is best suited to make your idea a reality.

Fortunately, most consulting companies know the limits of their capabilities and are not bashful to let you know if your project scope is beyond the realm of their expertise.

Here are some simple questions you may want to ask during your consultant qualification inquiry:

-Do you have first-hand experience launching new products or services?

-Is this a full-service consulting firm, or do you subcontract a majority of services to other businesses?

-Are fees per hour or per project?

-What types of new product ventures are considered your expertise?

-Do you offer any guarantees to support the fees I’ll be paying?

Answers to these questions will help you decide if you’re approaching the right consulting group to fulfill your needs.

Warning signs

Be cautious of firms that don’t possess first-hand experience pertaining to your idea. If the company is experiencing slow business activity, officials may lead you to believe they can manage your project, and therefore set the stage for lackluster results.

Also, watch out for firms with fees charged per hour instead of per project. It’s much more difficult to obtain justification for work performed on an hourly basis.

Ask any consulting firm you evaluate if fees can be based on a per-project basis. That way, once you’ve received a quotation, it’s harder for the firm to pass along fees in the event the project was misdiagnosed.

Another reason that many great ideas go no further than the mind of the inventor is the infamous “f” word funding.

Most people think you must have a large bucket of cash available before you ever begin to initiate a new product venture. It’s true that you do need to acquire funding to support your project, especially during the startup and introduction phase.

But many people accomplish major undertakings with virtually no capital before they commence their project.

If you’ve conceptualized a truly great new product, it’s quite feasible to generate funding from both the public and private sectors. Most quality consulting firms can assist you in securing adequate funding to bring your project to fruition.

If your funding comes from the private sector, be prepared to surrender some of the holdings of your company. To some, this may seem unappealing. However, since funding is so vitally important in making a new venture succeed, be certain you clearly understand and appreciate the meaning of tradeoffs.

Isn’t it better to hold onto a small portion of the business and/or product rights, rather than be left holding nothing more than an idea?

Keep ideas alive

Entrepreneurship made great strides in the 1990s. Unlike 20 or 30 years ago, great innovations are growing from the minds of individuals like you and me, and being successfully implemented.

Great products do not have to come solely from the big business sector. If you have a great idea, don’t just think about it. Ask some people you sincerely trust for their feedback, and if they concur, get on the phone and start inquiring about consulting partners.

In addition, before executing any action on your great idea, ask yourself these simple generic marketing questions: Is my product ready for the market? Is the market ready for my product? Do I have a cost-effective means of distributing my product to the market?

Remember, the only dumb question is the one that’s not asked. There are people in the business world who can help make your idea a reality, but they must be approached with caution. Be thorough and proceed with a step-at-a-time approach.

Gerard Lehman is president of New Product Marketing. He can be reached at [email protected].

Entrepreneur’s Notebook is a regular column contributed by EC2, The Annenberg Incubator Project, a center for multimedia and electronic communications at the University of Southern California. Contact James Klein at (213) 743-1759 with feedback and topic suggestions.

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