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What Can You Do When You Have a Great Invention Idea and No Money?

Over the years many people have created something they thought would be useful to the world and they wanted to get it into production and make some money on their new invention. However, a large majority of those folks too may not have had the money to make their invention come to life.

Protect your idea

Just because you have an idea for something you think is great, doesn’t mean you are going to make that money you desire, as there are a lot of things that have to happen. First and foremost you have to prove the idea you have come up with is unique and that you’re the first one that thought of it. If not, then someone else can come along and do it while you are procrastinating and then you won’t be able to do anything at all because the idea wont officially belong to you anymore.

You need to document your invention idea and do the proper research so you can put in to get a patent on it, which will protect your idea. A patent gives the owner legal, exclusive rights to prevent anyone else from using, making or selling an invention for a specific timeframe in exchange for them publicly disclosing their invention.  This patent benefits the inventor because it gives their invention credibility, as well as legitimacy and exclusivity. No one else is allowed to infringe on that.

If you have an invention idea you have to do the proper research to make sure no one else already has a patent for that idea. One place to start a basic patent search is at www.uspto.gov.

You need a prototype

After you do the research and discover your idea is unique and no one else has a patent for it, you do have to have a prototype in order to get a patent. The prototype will help you get sponsors to create your invention, and that will help you get the money you need to bring it to life and to the market for sale. Prototypes are sometimes a miniature of the actual invention you are making, but depending on the cost and what the item is, it could also be a real size or even drawings on paper.

Getting the funding for your invention

So, once you have affirmed the idea is unique, and possibly have applied for your patent, you still are going to need the money to make and market your great idea. So, here are some sources of funding you can look into to create your invention:

Federal funding

You may be able to get a government grant (which doesn’t have to be paid back) in order to fund your invention idea. Try doing some research at www.grants.gov.

Small Business Innovation Research Office

Another possible money source is the SBIR, which is available to an inventor who owns a small for profit business and that business is at least fifty-one percent owned by someone who is a US citizen or permanent resident and your business has five hundred of less employees.

Angel Investors

An angel investor is someone who sponsors you in return for a percentage of the money your invention makes. They don’t usually want to be involved in the day to day aspects of your invention, but provide money to inventors so they can reap some of the profits you hope to make. You can find angel investors by contacting your area chamber of commerce or perhaps at local universities.

Venture Capitalists

Another source is venture capitalists. These places can provide up to millions of dollars, and they too want a percentage of any profits the invention ends up making.

Family and Friends

Of course there are always your friends and relatives, if you think they have the money and would like to loan you some or to invest in your invention idea for a percentage of the profits.

Bank Loans

And there is always traditional loans from banks or other financial institutes if you have good credit and a way to pay back the loan.

Crowd Funding

In today’s computer age, many folks turn to this method to get money for their inventions. Some of these sites include Kickstarter and Indiegogo, as well as EquityNet Wefunder, AngelList and Localstake.

No matter where you are attempting to get the money from, it’s best to have a plan to present to them that shows your invention is worthy of them giving you the funding you need. This plan should include a statement that explains how your invention is going to benefit someone, why your product is better than some others in the same niche, if possible include a survey showing people that liked your idea and said they would use the product, if you have a patent or have applied for one, listing of any market contacts you may already have gotten, as well as telling them how you plan to spend their investment. It’s also good to have a prototype to show these potential investors.

Through the past few years InventHelp has had articles done on it for all their help getting new inventors the things they need to make good. Here are a few of those articles:

Use these great hints if you are thinking about putting up a pitch for your invention to some potential investor. Many of these hints will assist inventors in succeeding and making their dreams come true. Use InventHelp to do this easier and more efficiently.