10 Steps to Bring a Product to Market – Outsource Entrepreneur Model
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Approach Potential Partners
Approaching your partners can be difficult. Manufacturers don’t want to sign a deal unless there is a marketing firm guaranteeing sales — and marketers don’t want to sign a deal unless a manufacturer can promise to produce the projected volumes at a reasonable quality. The best way to overcome this obstacle is by first approaching a manufacturer and asking them to commit to the project if a marketing firm will sign on to the deal. If the manufacturer agrees, then you have a solid enough commitment for a marketing firm to be willing to sign on.
You should the process with a presentation. These are the key points
- You have had some market success and very strong market research results.
- You don’t have the money to pursue the invention on your own in a big way to accelerate sales
- You want to see if you can find a way to work together
- Explain who the other partners are that you are negotiating with.
- Demonstrate an 18 month payback period
You have your proposed deal structure ready and now you should use that to start talking with manufacturers. Remember that you want them to commit to the deal if you find a marketing partner. You should also try to point out these advantages to the manufacture
- You have a strong product and a strong marketing partner.
- You have had impressive market research
- You offer many tangible benefits to the company, which could include: a) a strong complementary product to other production; b) a firm base that they can count on for a period of time, this is particularly strong with contract manufacturers; c) this sales base should help them gain additional customers.
- The point that will really sell is that you have an 18 month payback and you have a sales forecast that is believable due to your market research.
Once you have a preliminary agreement with your manufacturer, you can start approaching marketers. Make sure you have chosen your marketers carefully and approach the ones you think will be most likely to join the partnership. Marketers become wary of products that have been “shopped around” and will avoid your product if they think too many others have said no to you already. So do your homework and be confident that you approach those companies for whom your product would be a good fit. You should start by explain your business model. These are the key points
- He product is complementary to other products they carry on the synergy of the products will increase sales for all products,
- Your product is on the cutting edge and will help the marketer’s image as a progressive company
- The momentum gained from adding the product will energize he company
- Much of the risk is being handled by the manufacturer.