Your business idea is to manufacture, fabricate or assemble an item that will then be sold either directly to consumers, (as in direct mail, or through brokers), or sold wholesale to stores or other manufacturers.

1. First, you need to make, or have someone make, a working model (prototype) of your item.

2. Prepare, or have prepared, a set of detailed drawings of your item. Be sure to date them and have a Notary Public witness your signature and date.

3. Contact a patent attorney and have them check your item for patent possibilities, and to make sure you are not infringing on an existing patent. If you can patent your item, start the process at this time. If your item is not eligible for patent, and does not infringe on another patent, you can still proceed with the idea, but with the knowledge that someone can also make and sell the same thing. Timing is important in this case. If the market test suggests that you have a great idea, then you need to act quickly. If you have selected a unique name or logo for your item we suggest that you have your patent attorney file for a registered copyright.

4. If you know a company that is interested in manufacturing your item as a value added or adjunct item to something they are now doing, discuss it with them and you may work out a contractual arrangement with them that will be of benefit to you. If you have a patent on the item, they may want to buy it from you or give you royalties on it. Your own financial circumstances will be the best guide in this situation. However, if they want you to make it for their own use, then get a letter of “intent to purchase” with all the prices, deliveries and specifications agreed upon.

5. We strongly recommend at this point that you take the Personality Profiler and Carland Entrepreneurship Index. The Personality Profiler will tell you whether you have the right personality and attitude to sell your ideas effectively, or whether you should remain the "brains behind the scene" who hires the right people to do the interface work. How well you interface with brokers, producers, customers, and suppliers will ultimately determine your success or failure in this endeavor. If you have partners or associates, have them take the tests as well, so you can determine who has the best personality match for interfacing with people in this highly diverse industry.

The Carland Entrepreneurship Index will show you what level of entrepreneur you are...should you start a very small enterprise, or are your capabilities more geared to competing with Microsoft? The Carland will tell you.

We offer these two tests, and we provide you with all the interpretations and recommendations you need to make the crucial decision facing you at this point. Click here if you want to learn more about the importance of business personality.

6. Now you have a critical decision to make. Should you: (1). Set up your own manufacturing facility or, (2) Have someone manufacture your product for you. The first choie will take a lot of time and money in the tooling and assembly process, even if it is a simple item to make. Plus you need to be very familiar with all the laws and regulations that govern this process. If you do not have the money to set it up, you may be eligible to apply for an SBA loan through your bank. Ask for the commercial loan officer who handles SBA loans.

7. Selection (2) may be the best way to get started. Be careful who you have manufacture your item; their time in business, reputation and ability to meet deadlines is critical. Talk to a couple of their customers and learn more about them. You must have a good working relationship with them. Ask if they will give you terms based on your customer’s “Letter of Intent”. It is common for manufacturers to ask for money up front, because you are new to them and the item they are making for you is also new. So you still may have to borrow money to get the first order manufactured. Also have your manufacturer sign a “non-compete agreement” which your attorney can prepare.

8. The sale and distribution of your item can be handled by you or by brokers. If you already have the contacts and they have agreed to buy your item, that’s good. Otherwise you will need to contact brokers who already have these contacts. Go to the Business Reference Desk of your local library and ask them for the Directory of Registered Brokers, and select several Brokers who specialize in your product. When you call them make sure they do not handle a competitive line!

9. If the market test has been a success, and you are ready to start your business, be sure to check our comprehensive list of things you will need to consider! Just click here!

Return to Main Page