You Have 5 Main Options For Funding Your New Product Development

When arriving at a brand new idea for a product, everything can get quite exciting.
From envisioning market success to projecting profits, it can be hard to picture anything but triumph. Yet, one of the most important things to consider when thinking about product development is funding it. Developing new products does have real risk, so it’s essential that you have some capital behind you. Being an area that many new inventors struggle with, below we have given a breakdown of the many different finance options available.
Once you’ve got started there’s some other juicy news for you too, because Cash is King
 

Friends and Family Financing

One of the most common first ports of call when starting any business venture is family and friends. From the oh-so-helpful Parent Bank to loans from friends, our nearest and dearest are surprisingly generous if they’re sold on your idea.
 

Licensing Your Product Idea to a Company

It may be worth having a chat with any competitors who are in the same market, and suggest that you license your product to them. It’s important to get trademarks and patents in place first though. Ensure that you’re protected and your idea isn’t vulnerable to theft in case you can’t reach a deal.
As part of our feasibility studies, we’re able to help you find out exactly how those potential competitors are.
 

Crowdfunding

Its ability to help raise money for charitable causes made it famous. Crowdfunding is now often used by those looking for capital to develop or launch a new product. With so many crowdfunding sites around now, inventors can post their idea and pitch to investors from ‘the crowd’. Each investor takes a stake in the business that owns the idea. Popular crowdfunding sites include:

Seek an investor

If you’ve carried out your research, you’ll be aware of the top thought-leaders and influencers in your space. What you may also find is that such industry ‘spearheads’ may be looking for projects in which they can invest their time and money. But, you need to find the right investor, looking at much more than what money they can plough into the project. Things to consider are:
  • Terms of investment i.e. equity split
  • The investor’s pool of contacts and network in which you can tap into
  • How active the investor will be in the business?

Start-up loan

If you believe that you have all you need to make the project work aside from cash, then a startup loan may be a good option. A startup loan can give you the capital you need for the development process, while ensuring you keep 100% of the business and profits. This allows you to repay the loan on a monthly basis.
We are able to support you with a fast decision, a low interest rate, and no early repayment charges.
Needing easy access to funds, a decision typically made within 2 hours, and funds within 5 days?  Contact us now
 

If you are looking to develop a new product and want to know what funding options and support are available to you, be sure to contact us today.

 

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[…] is all about enlisting the financial support of the general public through online advertising campaigns. While they can be lucrative, the market is also competitive […]

Having a business is to create ideas that will help it grow. Starting up a small business and looking for a financer is a very challenging part.

Innovation is never a cheap venture. That’s why a good funding source is necessary.

Securing a loan for a new product development can be so difficult. It is my least preferred method from the list.

Doing a great product design always helps. Some investors actually fund you based on how good a product design you have.

It’s imperative that the solution be geared to solving an actual problem. It is easier to get people sold on your idea that way.

Friends and family have always been key in physical product development. They are the best source of funds in my view.

During idea generation, involving other people can prove to be beneficial. That way you get to understand what would appeal to a much broader demographic.

When we create ideas we need to consider the cost of the project. Being over ambitious may put you in a position in which it is difficult to secure funding.

New product ideas that are revolutionary will always get funding one way or the other. That’s the upside to innovation.

Innovators should be careful so that their idea commercialisation actually brings a good ROI. That’s when a venture is considered truly successful.

We should get rid of all the myths of innovation in our minds before embarking on an innovative venture. It makes things go much smoother.

In my opinion, New product development in the UK would really take off if it were easier to access loans. Unfortunately that is not currently the case.

Funds will always be the very first obstacle in anything really. May it be travelling, buying stuff or starting an endeavor. Perhaps this is factor why people more often than not are wondering why is innovation so difficult? Answer because nothing is free. However, it should not stop anyone from realizing a dream. I see a lot of go fund me or kick starter these days and it is not bad. If something is of quality people will definitely support it.

Being able to commercialise ideas will greatly benefit people. All of us have unique ideas that can be commercialised. Innovation can help us stand up from this pandemic.

Wonderfull advice, I’m sure that following those steps will make to find how to make money from my idea.

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