The complete guide to the beginner entrepreneur
Quite a few people dream of inventing something and thus gain a great economic opportunity along with a great deal of satisfaction and personal satisfaction. However, naturally, not all of us were born to invent.
What is required of any inventor?
Inventors are required first and foremost to activate creative thinking and see every problem as an opportunity rather than a difficulty. This is because the source of invention always lies in the unique ability to locate a problem and find a suitable solution. In order to become an inventor, therefore, thinking outside the box is required, in which even the most trivial difficulties can become a brilliant idea in the form of an efficient and convenient solution. Anyone who is able to discern certain problems in existing solutions and find a technology that can make any product desirable and desirable can be considered an inventor.
Today, quite a few effective and original ideas pass through the minds of many people, but the ability to translate the same idea into the practical realm is reserved for only a very small percentage of them. In order to do this, one must have faith and great confidence in the success of the invention. In the next stage there will be a need to invest time and resources in the process of development of the idea and for this purpose requires high self-discipline and discipline in order to operate in an orderly and independent manner. And of course the independent inventor must take personal and economic risks that accompany the development of the invention.
Since many ideas do not come into effect immediately after they are realized into a commercial invention, it is very important to show patience, tenacity and patience along with determination and belief in the power of the invention to succeed.
I'm an inventor!How to begin?
In order for an idea to take shape into a product, several necessary steps are required:
Step 1: Define the idea and know the market
The first thing you have to do is put your idea in writing. Describe what your product offers, its benefits, how it works, and more.
In addition, you must answer the question of how it differs from other products, and for that you need to learn the market you want to enter. Collect information about the manufacturers of products in the field, the required device specifications and approvals, the potential selling of your product, products that compete with your product, and the costs that you think will be required to develop the product. At this stage it is also worthwhile to build a basic business plan for the product by defining the target audience and the marketing strategy. This stage is a sort of filtering of the less successful ideas in favor of promoting the better ideas.
Is your idea original?
This search can be done independently or by free online databases. At least in the first stage, it is recommended to perform the search alone on the network, since usually patents similar to yours will be found at this stage. If the search did not produce such results, it is recommended to contact a company specializing in patent search. It is important to emphasize that the credibility of the search is the result of receiving assistance from experts in the field (more about the process of examining and approving patents at the end of the article).
Step 2: Conceptualization
In the next stage, you must formulate, independently or with the assistance of an external company, a concept for the product you have to produce. Concept means defining the product's work requirements, along with its characteristics: ease of use, engineering form, design, weight, aesthetics, production costs, sales price and so forth. After that, you can come up with some ideas for implementing the solution and finally identify the ideal concept.
Later, a feasibility study should be carried out (whether it is logical and whether it can be performed from an engineering point of view); Along with an examination of economic feasibility (including an estimate of its business and commercial potential).
Development of a comprehensive plan
The chance of selling a raw idea is very low, and there are few sales that include such an idea. Processing the idea to present for sale an idea that is "worth something" involves much more than a technical thought about implementing the idea. For this purpose, it is necessary to invest in the development of an economic plan that deals with the profit and loss and the profitability of the investors' employment of the idea, along with detailed explanations of the product itself and the innovation it adds to the existing supply in the market. As part of this process, it is advisable to carry out a comprehensive and comprehensive market survey at this stage, and as it progresses it is important to update the initial concept by emphasizing the uniqueness of the product.
Of course, in order to develop an idea at this level, there is a need for extensive knowledge on the subject, or alternatively, the use of relevant professionals, so ultimately the process of selling an idea is done only by people who invest a lot of energy in their ideas and do not let them sink because of the complex process of turning The abstract idea into a real product.
Once the business concept formulation phase has been completed clearly, it is possible to begin preparing a three-dimensional model for the product and its components in the computer and then produce production drawings.
Step 3: Financing private inventors
The stage of raising capital is one of the most important and important steps in the realization of the business idea into a profitable economic enterprise, but in the current period there are many financial difficulties for inventors and private entrepreneurs as part of the attempt to raise funds for the promotion of the venture. The main ways in which entrepreneurs are assisted are:
A. Equity - Personal financing sources if the amount of investment required to realize the project is not too high.
B. Loans - bank credit that includes several types of credit as follows: long-term loans, term construction, short-term credit framework. The most prominent advantage of this financing option is that the entrepreneur usually remains at 100% ownership. One of the main problems faced by the vast majority of young entrepreneurs in the business world stems from the fact that the recognized financing institutions do not allow them to take out a loan.However, it is important to note that at this time, there are quite a few alternatives, with competition for each borrower's heart only increasing. As a result, we recommend that you do not give up in any way even if the bank has closed its doors to you. Today there is a wide variety of funds of all kinds that come to encourage entrepreneurial character and activity of this type in Israel and receive support from the banks.
C. Appeal to an External Investor - Many companies take their early stages of development by raising funds from entities that hold this interest, or in other words, investors.There are several types of investors who will agree to give money to the project in return for receiving a certain share of it. The types of investors must be thoroughly familiarized with the ways in which they are approached, the method of engagement, their interest, and the advantages and disadvantages of each of them before making a final decision regarding the transaction.The safest way to get financial funding for the idea is by preparing models for illustration (a prototype) that must be presented to investors. The prototype is the initial model for your product and displays the actions that the product performs, the raw materials from which it is composed, the parts attached to it, its functions, its size,
(Additional details about how to contact external investors and the prototype preparation process at the end of this article).
Step 4: Production
After the form and mode of operation of the product has been formulated, and a prototype is created that demonstrates its operation, the production process usually begins. Click here for more information on manufacturing first product series.