2008-07-31

How to Sell a Product Idea

It s a mistaken belief that a great product idea necessarily translates into a great product. Be it a minor modification to an existing product or an entirely new product idea, it has to be sold well for it to succeed. Here are a few basic steps to help you sell a product idea.



Step1
Check your idea for originality. Market research and patent searches are handy tools for this type of research.


Step2
Determine the profitability of the idea. You may have a great idea but it should also translate into a profitable business for the prospective buyer.


Step3
Protect your idea by patenting it or at least filing for a patent. It not only makes the idea attractive to prospective buyers, but also safeguards it from being copied.


Step4
Make a working prototype of your product idea to give the prospective buyer a complete feel for the product.


Step5
Find the right people to whom you can sell your idea.


Step6
Present your product idea well.


Step7
Don t limit yourself to only one prospective buyer. Approaching more than one buyer enables you to get the best price for your idea.

Finding the Right Prospective Buyers


Step1
Know your product s market and approach buyers in that sector.


Step2
Find prospective buyers through trade shows, industry associations, databases and advertisements.


Step3
Build a website and have a page dedicated to your product idea. Do not reveal too much detail. The website should be easy to navigate and approachable. Make sure you include your contact information.


Step4
Contact invention promotion firms to help find the right prospective buyer.


Step5
Investigate prospective buyers to determine their financial credibility and product development capabilities.

Presenting Your Idea to a Prospective Buyer


Step1
Treat the presentation like a business plan. Take your buyers through every stage of developing the idea into a product.


Step2
Make a working prototype complete with a sample package design. Most buyers prefer having a complete feel for a product before investing in it.


Step3
Use accurate market research reports, manufacturing cost estimations, distribution avenues and sales projections to enhance your product idea's credibility.


Step4
Study your potential buyer well. Understand their history, products and revenue models and explain how your product can fit in.


Step5
Show the profit potential of your product. No matter how good your product, most companies will be interested only if they see a profit-making product.

2008-07-30

How to Market Your Business on a Tight Budget

Marketing is vital to a business s growth. Unless consumers know about a product, they will never buy it. Often this fact is overlooked, as a lot of people wrongly assume that marketing involves huge financial expense. Not all marketing techniques require astronomical spending.


Step1
Define your target audience. You wouldn t want to waste your marketing efforts selling to the wrong person. Be as specific as possible.


Step2
There is no substitute for good research. Find out about other players in your sector through databases and classifieds sections of local newspapers.


Step3
Create a value proposition for your business. How does your business score over your competitors?


Step4
Create a marketing plan and follow it. Consult expert marketing consultants to help you with it. Many of them come cheaper than you think and can help you allocate your budget more effectively.


Step5
Get creative and use unconventional but effective channels of marketing. Let your keyword be networking. Attend local business association meetings. Volunteer to speak at business conventions. Create a news angle for local radio stations or TV channels, which is not only useful for customers but also revolves around your business interest.


Step6
Retain your existing customers. Initiate loyalty programs. It will cost you much less to keep a regular stream of customers than win new ones.

How to Sell Your Product on TV

Want to give your credit card a breather and, instead, sell something on the Home Shopping Network or QVC? It can be a long shot, but one that can pay off if you have the right product.




Step1
Think about the benefits your product offers. Can it be demonstrated on television? Does it solve a problem? Is it topical or timely in some way? Watch QVC and Home Shopping Network (HSN) to see what features they tout for products they represent.


Step2
Go to HSN.com and click on Vendor Information for an application. For QVC, go to QVC.com and click on the Frequently Asked Questions section, then on Vendor Information.


Step3
Complete the application and then mail it along with a catalog, brochure, picture and/or a sample of your product.


Step4
Wait. It may be weeks or months before you hear back from the companies about their interest level in your product. And if you do, they may need more information. For its second round of evaluation, QVC asks for a sample. HSN says to give its staff at least 45 days to evaluate your product. If the merchandising specialists from HSN want you, they'll contact you to set up an appointment to meet with a representative.


Step5
Look for an opportunity to attend a local qualifying meeting with QVC officials. The company frequently sends representatives to major cities to investigate local products, which gives you the opportunity to dazzle them with your product and personality.


Step6
Be prepared to pay to get your product on the air. This will vary based on feedback from HSN staff, although QVC does not require such payments.


Step7
Gather estimates from vendors on how quickly you can ramp up production. With large volume orders the rule at HSN and QVC, you'll need to demonstrate you can meet supply needs.

How to Hire a Headhunter

Running a business can monopolize more time than you have to recruit new talent--particularly if you're running solo. Hire a headhunter to fill key positions and bring in qualified personnel.





Step1
Investigate the cost. Headhunters may charge you as much as 40 percent of your new employee's first-year salary, although 20 to 30 percent is more the norm.


Step2
Understand how search firms charge. A contingency search firm only charges a fee if it finds a suitable hire. A retained search firm charges a fee based on a percentage of the new hire's salary, but does a lot more legwork to narrow the list of qualified candidates. Many top-notch headhunters will not work on contingencies, and many will want a fee if you fill the position with them or without them.


Step3
Find a headhunter with extensive experience in your particular industry or functional area to get the type of candidate you're looking to hire.


Step4
Verify their success rates. Some headhunters strike out on as much as 25 percent of their searches, depending on the industry they specialize in or the type of position they try to fill.


Step5
Ask questions about the process they use for identifying potential candidates, whether any personality or skill-based assessments are performed, and if references are routinely verified.


Step6
Check the firm's references. Asking past clients about the firm's performance is an excellent way to gauge how they'll approach your hiring needs--reputation is gold in the headhunting business, so do your homework.


Step7
Ask who'll be doing the actual search: a principal of the headhunting firm or a lower-level staff member. Find out how long a typical recruitment search takes.


Step8
Ask if there are companies they can't approach. Many headhunters won't recruit from their own clients, which limits the pool of candidates they bring to you. Similarly, provide a list of companies you do want them to approach. Chances are you know your competition better than the headhunters do; spend the time to educate him or her.


Step9
Be very detailed in your description of job requirements. A recipe for failure is to tell a headhunter, "We need a really smart person to head up sales." A more successful description is, "We need a candidate who has served in a VP capacity with a Fortune 500 company, handling international distribution of enterprise software to value-added resellers in Europe."