“This is the one. This is the idea that’s going to make millions, and I’m going to do something with it.” That statement is the mark of someone who takes their invention seriously. That’s where you should be after being very selective, researching your ideas, and choosing the one with the most potential to succeed.

Welcome to the sixth part of our 10-part series, where we talk about money, why you need it, where you’ll find it, and where you’ll spend it. This article is meant to enlighten you and help you make the right decision about going forward.

How do you show manufacturers, potential licensees, your family & friends, and yourself that you’re serious? You treat your invention like a business. You take a logical, orderly approach to making your invention successful. It also means you will need to start investing in your invention, just like entrepreneurs invest in their startup business. Time to stop thinking like an inventor, and start thinking like a business-man or woman.

Why You Need Money: No one else will tell it to your face, but we’ll tell you because one way or another, you will find this out . . . developing a product from start to finish takes money, lots of money, at a minimum tens of thousands of dollars before your product gets to the store shelves. Anyone that tells you that you can invent for less than that is either being nice, or lying. Ask any inventor that has done it, and he or she will tell you the same thing. In fact, you can ask Lisa Lloyd, successful inventor of seven products, in our discussion forum and she’ll tell you the same thing.

This is not meant to dissuade you, but to help you prepare for the inevitable expenses. In fact, knowing the costs will save you money in the long run since you’ll be ready.

Where to Find the Money: Unless you have that amount of savings in the bank, at some point you’ll need to get the remaining amount from somewhere else. Many startups finance through a combination of debt (credit cards), loans from family, investments from friends, or partners. You’ll eventually find ways to save money, but only with experience. For ideas on how to finance your invention, we suggest listening to our audio downloads, visiting your local Small Business Development Center, and reading “How to Finance Your Small Business.” Talk to other inventors and ask them what they did. Even IdeaTango was self-financed in the beginning.

Where You’ll Spend it: You might want to sit down. A good patent agent or attorney will cost over $100 per hour. Your patent will cost anywhere from $2,000 to $10,000 depending on the type of invention. You’ll create several different prototypes, some costing hundreds and others costing thousands. Engineers to design your invention will cost $50 per hour or more. Want to know if your invention will sell? Market research and consumer surveys cost thousands of dollars for quality results. Trade shows will cost several thousand a pop. Traveling to pick manufacturers can cost thousands. Then the retail store that sells your product wants you to have an inventory of 5,000 units on hand. So depending on the cost to manufacture your product, you could have a tab in the tens of thousands of dollars. Not to mention the small business attorneys, accountants, graphic designers, and other people that helped you along the way.

If you’re still breathing, hopefully now you understand the costs associated with product development. You need to seriously ask yourself: am I willing to risk my money, the money of my friends and family, and willing to think like a business and spend money on the right things? Is my invention idea worth that? If your answers were “yes,” then you’re in the right place.

 To be continued…

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