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.
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?
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.