Thursday, March 20, 2014

Handling Winning Ideas

Having winning ideas are important to any entrepreneur. Without winning ideas, you may think you have the next big thing, but in fact, it may turn out to be not. Stephen Key rightly put it as ideas that are profitable, quick to license, and inexpensive to venture.

The recipe for a successful product birth should have the following traits.

1. A substantial market.
> This points to recouping of our investments for the product from birth to launch. A good indicator of a substantial market is the existence of other products that aim to solve the same problem.

2. Existing manufacturing technology.

> It is logical that product made using existing technology will have the advantage of cost, speed and time.

3. An acceptable retail price point.  
> The general rule of thumb is that products retail for five times the cost of manufacturing.

4. A benefit that's summarized in a single sentence. 
> One sentence tagline on its benefit is essential to capture customer's attention. What motivates purchase is the benefits customer will get, not the features. 

5. A user-friendly interface.
> Easy-to-use and user-friendly products are more easily accepted. Product with complicated operation steps will deter users from picking it up again.

Protecting winning ideas from competitors or contract workers are equally important in the early stage of the idea incubation. We may not consciously know that we have revealed our brilliant idea over a harmless lunch chat or after some beer. Often, there is a need to sign some binding documents as a way to avoid the element of sabotage or undercutting in business.
Non-disclosure agreement (NDA): usually between product owner and suppliers.
Non-compete agreement: usually between product owner and contract or own workers.
Work-for-hire agreement: usually between product owner and contract workers.

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