The biggest mistake startups and inventors make? They are not patents

The biggest mistake people make with their intellectual property has nothing to do with protection. There’s no knowing if anyone else will benefit from their brilliant idea. Not knowing if there is ask for it on the market.

Many of us are getting ahead of ourselves. We file non-provisional patent applications, build expensive prototypes, raise money and start businesses – and then, finally, find out if someone really wants our product. This process is extremely expensive, time consuming and, if our assumptions are wrong, painful.

The risk of spending a lot of time and money on an idea no one wants exists at every level of the innovation ecosystem, including inventors, startups, small businesses, and corporates. For example, the US National Science Foundation awards more than $200 million each year to promote the development of new ideas through its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The start-up companies are funded to do technical research, which is inherently risky – but it’s more often the market-based risks that cause them to fail.

“The biggest risk is that they will build something that no one really cares about,” program director Ben Schrag emphasized during a Inventor groups of America meet.

When deciding which startups and small businesses to award, the NSF considers how common market-based risks are managed, and provides training to all winners on how to better understand their market and customers. NSF also launched a program in 2011, Innovation Corps or I-Corpswhich is dedicated to teaching researchers how to test the market before launching a business.

“This is so [the company] doesn’t spend a lot of money on R&D to reduce technical risk, then realizes too late that it was actually another problem — the lack of a customer pain point — that was the main threat all along,” Schrag said.

Test the market for your invention idea in 4 steps

There is a simple solution! You need to test the market to determine if someone really wants your imagined product or service First. Is the benefit of your product or service big enough for potential customers to actually buy it?

Testing for market demand has many advantages. You can use market demand to bring other parties to the table. It gives you a paper trail of protection. In my experience, potential licensees are less likely to work around you if you have evidence of market demand. You can better file intellectual property based on the input you receive by aligning your patent claims with your business objectives.

You have to consider the risk of developing an idea that no one wants before spending a lot of time and money on it. That’s the big advantage of the strategy overview below. It’s an effective way to test the benefits of your idea before building and protecting it. It allows you to refine or redesign your product and protect it accordingly, based on the input you receive. Ultimately, it helps you move forward in the right direction by providing critically actionable information.

Let the market help you determine when to file a non-provisional patent application.

Here’s a simple four-step process that inventors and startups can rely on.

Step 1: Find out the most efficient way to produce your product idea and what it will cost.

You hear these two questions again and again from interested parties. How do we do? How much is it? Prepare to answer these questions.

Step 2: Protect your idea with a provisional patent application (PPA).

This allows you to classify your invention as “patent pending” for one year. Filing a provisional patent application with the US Patent & Trademark Office is affordable and easy.

Step 3: Create high-quality marketing materials that highlight the benefit of your idea.

Sometimes all you really need to test the market is a 3D computer generated model. Virtual prototypes, which are easy to create, are very affordable.

Step 4: Contact industry experts to hear their views.

Focus on connecting with a buyer at a major retailer or other end user. LinkedIn has made it easier than ever to connect with industry experts, including buyers. Start by identifying the department where your idea would be sold. Then search for buyers and send a connection request. Don’t pitch your idea right away. Instead, tell them you’re launching a product you’d like to hear their views on and ask if you can send them more information. Be sure to only disclose the benefit of your idea, not your intellectual property itself.

Do you need to change your idea so that it retails? They’ll let you know. This strategy works with retailers as large as Walgreens, Walmart and, in the UK, Tesco.

There are other things you can do to test the market, including contacting potential licensees. It is important that you contact the right person and that you take the time to understand their business. Acknowledge the company’s mission, describe that you’re working on something of your own, then be concise and direct with your question.

“The way to cut through the clutter is to show that you’ve done your homework and that you have something to offer,” explained LifeScan Chief Marketing Officer Lisa Rose in an interview.

Do not get me wrong. Protecting intellectual property is extremely important. Patents, trademarks and copyrights – the tools provided by the USPTO to protect our intellectual property – are fantastic. But they are also just one piece of the puzzle. Are you sure you are using them correctly? The question for entrepreneurs is not whether we should use them, but rather when.

When there is market demand, money is spent – meaning people actually go to work commercializing your product idea. I have experienced this firsthand. I didn’t get a grip on my big idea for the packaging industry until I had a client who wanted 50 million units.

Everyone cares a little less about intellectual property when there is genuine market demand. Everything seems to fall into place with market demand. So yes, while intellectual property is important, it’s not as important as you may think. Make finding a customer for your idea your primary goal.