IDEA TO MARKET©: How the Entrepreneur Takes The Next Big Idea and Moves

It To Commercial SuccessMark S. Long

Long Performance Advisors

“The Powerpoint Syndrome”

Moving Right Along…

The Cheese-Filtered Cigarette

It takes more than a GREAT INVENTION…

U.S. Pat. No. 5,713,081:  Pantyhose garment with spare leg portion.

With GREAT Utility…

Inflatable rug...convertible to a mattress, in order to obviate the prior art problem of storing or housing large convertible beds.

And a Potentially HUGE Market…

“Everyone acquainted with the subject will recognize it as a conspicuous failure” – Henry Morton, President of the Stevens Institute of Technology, on Edison’s Light Bulb, 1880

“Television won’t last because people will soon get tired of staring at a plywood box every night.” Darryl Zanuck, Movie Producer, 20th Century Fox, 1946

“The world’s potential market for copying machines is 5,000 at most.” The President of IBM, to the Xerox Corporation, in 1959

And Predictions Aren’t All That Great, Either…

“The Phonograph has no commercial value at all.” Thomas Edison, Inventor, 1880’s

There is not the slightest indication that nuclear energy will ever be obtainable. It would mean that the atom would have to be shattered at will, and that is impossible.” Albert Einstein, 1936

And, the ever-popular:◦ “This anti-trust thing will just blow over.” Bill

Gates, 1990’s.

And Don’t Think Being Smart Helps, Either…

What Can We Learn?

ProductProtectionProposalPenetrationPeoplePublic Exposure

Mark Long’s 6 P’s for Performance©

1. Uniqueness – a key factor in product success

2. Simplicity – design – 2007 survey by Kelton Research for Autodesk – 7/10 Americans “just had to have” a product – was because of design – among 18-29 year olds, even higher

3. Function –five characteristics of usability – effective, efficient, engaging, error tolerant, easy to learn

4. Value Proposition – customer perception

The PRODUCT

Product Features – The product itself – what does it do? How is it different? How is it “new, groundbreaking, innovative”?

Innovation versus Duplication versus Synthesis versus Extension

The “counter-intuitive” experience – annoying experiences or hazards encountered

Piggybacking – how unique is unique?

What Makes A Product Unique?

The PROTECTION

Patenting – USPTO; PCT; Other patent offices – Provisional and “Regular” patents◦ You can’t patent an idea – reduce to practice◦ A “right to exclude”◦ No guarantee to commercial success

Copyrights – “original works of authorship fixed in any tangible medium of expression” – Library of Congress - ©

Trademark – USPTO; $325 filing fee per item; ®,℠, or ™; good for 10 years, with renewals

Common Forms of Protection

Patents – public disclosure – have NDA/CDA in place! Remember – patents are published and expire in 20 years!

Copyrights – while they do offer some protection, limited enforcement and limited international assistance

Trademarks – monitor and renew; abandonment is easy to do!

Trade secrets – also a possibility

Caveats

The Business Plan – BREAKING WITH TRADITION!◦ Babson College Study – “Just Do It” – examined

116 businesses started by alumni – no statistical difference between those that started with a formal plan, and those that did not!

◦ Concluded that the only reason to write a “formal” plan is to raise outside capital

◦ Case Western Study – Same conclusion – still need a shorter plan, with emphasis on marketing and financials (no matter what), unless you are going for outside financing!

The Proposal

Market Identification and Characterization Financials – Sales Forecasts and Budget Participation – Everyone in the Company

“chips in” their $0.02 worth AND buys in Competitor Analysis – knowing who’s out

there will help you sell Critical Risks – knowing your “tipping

points” and what to “watch out for” Executive Summary – a good “marketing

piece”

The “Keys” to Planning

Pricing strategies – Skimming? Penetration pricing? Parity pricing? Price bundling?

Positioning – Attacking the market; getting in the right place at the right time; innovative distribution tactics

Advertising – Budget; “Free exposure” advantages; cost-effective methods; managing expectations◦ Example: Direct mail – expect a 2-4% response◦ Tradeshows: Expect 6-10% of leads to be valid

Penetration

For the Entrepreneur – INEXPENSIVE!◦ But effective! - use the power of NETWORKING;

don’t underestimate your BUSINESS CARD; give TALKS everywhere you can; use the PHONE to your advantage; issue PRESS RELEASES when appropriate

◦ Use the web to your advantage Give a clear message about your company and your

product and your mission Don’t be text-intensive Make sure your site is all about your customers, not

about you Use a content management system you can update

OFTEN

What Works in Advertising?

What does Universal McCann Do?

SOME Text is a good idea…

http://www.teacherxpress.com/

BUT don’t get carried away…

The PEOPLE

The “hit by the bus” theory – back-ups! Affability is sometimes more important than

ability in a small business Do you really “need” to hire someone F/T?

◦ A lot of work may include accounting, manufacturing, Web-site design, marketing and public relations — even administrative assistants can be hired on a “virtual” basis now online.

◦ Vendors often have more knowledge and experience than someone you can afford to hire

It takes TALENT…

Referrals from your friends, industry colleagues and advisers, such as your accountant, attorney, board members and organization members

“Niche” online job boards Membership organizations Popular blogs and Web sites in your industry Local newspapers and trade publications Employment agencies and head hunters

Where are They?

Public Exposure

Showing the Product in its environment Making people understand the Product Constant and consistent exposure Don’t worry, be selling Selling the PERCEPTION – Selling the dog! Always use open-ended questions in your

conversations◦ Would next Tuesday at 3pm or 4pm be best?◦ Would you prefer the 10% discount on the

quantity of 100 or the 20% discount on the quantity of 250?

Getting the Product to the Public

PERSISTENCE

And the Ultimate “P” -

Product + Protection + Proposal + Penetration + People + Public Exposure + Persistence + = PROFIT

It’s only an idea…

Thank you, Thank you very much!