How to Bring Your Concept to Market: Protect Your Concept
Once you have tested your concept and found it to be sound, safeguard your brand name or image by registering it as a service mark or trademark, suggests Richard Stim, attorney and author of Patent, Copyright & Trademark: An Intellectual Property Desk Reference. To protect a unique product you have invented—one that is fully developed and working—register a patent with the U.S. Patent and Trademark Office. Literature, music, art, fashion designs, and software programs are copyrighted and registered with the U.S. Copyright Office.
The most common response by a competitor to a successful product or service is to imitate it. "The best defense is to always strive to be No. 1 in the marketplace," says Braga. "Most companies will let you gain market share before they copy you." Have plans in the works for making improvements to your product or your service so that you are prepared when there are competitive threats to your business, he suggests.
Not every product requires a patent. This is a costly process in terms of lawyers and fees-- from $3,000 to $15,000. A lot of it depends on how difficult it is to duplicate your idea or reverse engineer your product, says Stim. Coca Cola doesn't patent their secret formula so that their recipe doesn't get stolen; it's treated as a closely held trade secret.
One way to protect your product or service is to position yourself as an expert or go-to person in the industry, says Susan Friedmann, a nichepreneur coach in Lake Placid, New York and author of Riches in Niches: How to Make it Big in a Small Market. Use social media, blogs, Twitter, Facebook. "Those things become important in letting people know who you are and what you do." Arrange for speaking opportunities at conferences or attend trade shows to let people see how knowledgeable you are even when aren't selling directly to them.
Dig Deeper: How to File a Trademark
How to Bring Your Concept to Market: Build Your Capital
Bank credit and traditional loans are even harder to access these days in the post financial meltdown economic climate. Which means you'll probably have to tap into personal savings, equity in your home, or relatives to finance your new enterprise. Braga started his business with $500 and a computer. "I made sure that I didn't go out and borrow a bunch of money and get into a lot of debt."
Barnett notes that if you have not positioned your personal credit such that a bank will see you as a strong enough credit risk, they won't lend to you. "A poor credit score will ruin any chance of qualifying for a loan."
Starting out, have enough money in savings during the first 6 to 12 months of operation so that you're not relying on the business to cover personal living expenses. Pour profits back into the business to pay for the business' expenses.
Keep in mind selling a lot of product or service doesn't mean your making money. Some businesses spend more than they earn. "Stay on top of your finances," says Barnett.
Dig Deeper: How to Finance a Business With Your 401K
