My Process For Starting a Patent or Business Part 3
In Part 1 there were 3 things we covered on the process for starting a patent to manufacture or a product business:
1) Is the idea something that solves a problem? Is there anything else like it? Is it unique? Is it manageable in size for mailing?
2) Make sure to have the funding as it is a lengthy process, and you will need income to support your idea.
3) Gather all the relevant information on how to start the process of getting a patent and what businesses you need to be working with to set up the right team.
In Part 2 we discussed:
1) Preparing to submit patent information and what information is needed.
2) Defining a patent and how it works.
3) How you must keep everything in order and the process moving to be successful.
Now we will discuss how we planned for the design, what the needs are in fulfillment, packaging and starting social media:
First we are going to talk about the Design of the prototype: Let me start with defining the prototype: it is a first or preliminary working model of a product. When it comes to creating a new product, there’s a lot more to it than just brainstorming and sketching. Prototypes are a critical step in bringing a product to life. Prototypes are more than just models; they’re the tangible demonstrations of an idea. They allow you to test concepts, identify problems, and refine the product before it goes into full production. At its core, a prototype is a working model. It’s not a final version but rather an evolving version designed to help you understand how the product will work in the real world. Think of it as a tool to communicate your vision to others—and this is where the magic happens, because trying to get this idea into the hands of others was much more difficult than I imagined.
While waiting to meet with the plastics manufacturer, the engineer provided another prototype, which was too tall, and would not work. The engineer kept saying that we would not be able to make this out of plastic or resin and advised us not to move forward until we can get a working prototype. Well, since he said we couldn’t make it work, I had to set out on a mission to prove we can, so I stopped by Dollar Tree and found a plastic toy motorcycle. The spokes of the wheel were exactly the circumference I needed and after finding this example, I went home and cut it apart the spokes to show the engineer what I was looking for. I said, “ If China can make a piece of plastic small enough to fit through the material….couldn’t we also find something similar”? So I called the agent and explained that I had found material that would work and could I meet with the Plastics manufacturer owner to show him what I am talking about.
We met with the Plastics manufacturer, and he thought it was doable. He showed me how tough the sheetrock anchor edges are, how thin they are and that we could get the small part to sharp and small enough to puncture through material and have a second side to attach the TAGit product to the garment. Now the manufacturer started working with the mold manufacturer getting this ordered with all details while I started working with the marketing firm for setting up the website, logo and color to use for Logo. We purchased a URL or barcode purchasing bar and needing all specifics of the product to fill out on each bar code item needing to sell, set up mailing address, set up business phone number, worked with product liability and sent samples of the prototype to get the cost of what we will need for the insurance, set up meetings with fulfillment centers to see what each one offers and receiving price quotes for the fulfillment part of the process. We will need to know how we are going to store inventory and who can help with inventory, and start the process to look for a tax accountant that can help with small business needs.
2) The second process to complete was Packaging: Now packaging is a beast. Why is product packaging so important…what is it? I never thought about how much thought goes into product packaging. Product packaging is essential, there is so much attention that goes into this process and this is a tedious process as this can eat up all your profit if you are not careful. The range of cost is limitless, but packaging is not just a container or materials to protect your package, it is the brand’s first impression to customers, it should provide value and excitement and should make customers eager to share their experience.
Packaging is an extension of your customer service. You need to incorporate the wow factor. It must capture key elements and must look aesthetically pleasing. Packing should be functional and pretty. The packaging experience must strengthen your brand identity, so you can’t take it lightly. You can differentiate yourself with your packaging and be able to attract new customers, so be prepared to look at examples, change ideas and sample different ideas to get the look you want at a cost you can afford.
3) The next stage after filing for a U.S. Patent: Now we are looking at international patents within 6 months of filing the initial patent. This is such an interesting story about patents…
I was looking at the letter the patent attorney had sent when we applied for the design patent and it said we would have to apply for international patents within 6 months. I had assumed I would know if my patent was approved before this timeline, and we would know what to do. Well, in talking with the attorney, the U.S. Patent Agency does not run this way. You may NOT know if you are approved before needing to file for international patents.
Information for Patent in other countries goes like this:
After filing with the U.S., they give you 6 months to decide if you want to file with other countries. Some countries have a separate registration, and the patent could be accepted in their country even if it is not accepted in the US. Most countries run between $2- $4,000 being the cheapest, other costs are involved in some countries. Even if you filed it in China, they don’t follow the laws and can continue to sell it anyway, so what is the point for small companies? Other countries can buy the product from the US, but it is just not protected from them manufacturing the same item in their country and selling it everywhere else. If you filed for a Patent in all countries, 195: it would be $390,000 just to file patents with all countries.
We had analyzed the costs of packaging and fulfillment, and the results are quite discouraging. The expenses are double what I had anticipated. It’s no surprise that many avoid entering this field. This might explain why so many patents are filed but never realized. Additionally, it’s frustrating to think that other countries could start manufacturing my product once it’s launched and sell knockoffs at a lower price, since I’m not investing in international design patents and am focusing on fulfillment in the USA. We need to be stricter on companies from other countries that copy our ideas, or we need to find ways to produce items in the US at costs competitive with China, or consider reducing our support of China.
All costs for the manufacturing, hang-tag, fulfillment center, envelopes, yearly costs and marketing are daunting as it costs so much for all these services in the United States compared to what you can buy products for from China. I could take it to another country, but I am determined to give our country a chance, and if this doesn’t work, how can we get this produced in the U.S. without costing an arm and a leg? Some of the important facts of having it produced in the U.S. are being able to have control over regulatory policies, labor standards, and ethical considerations. It ensures that the product aligns with nation values and standards. Some consumers actively seek out products made in the USA due to perceived quality, ethical considerations, and a desire to support the domestic economy. Having a heavy reliance on imports can lead to trade imbalances. Keeping manufacturing within the USA fosters innovation and technological advancements. Domestic manufacturing allows for better oversight and quality control guaranteeing the production of high quality goods and supporting job creation here in the United States.
This is a personal reflection I had to share after everything else that has happened: I had to add that I opened my company bank account yesterday for the company and it seemed so exhausting. The details and information they needed and wondering what in the world I am doing? Will this make any money? Will another country quickly take over and produce it for much cheaper? So many unknown questions in my head right now. Seems that there could be a more standardized process, so people know what they are getting into as they start an idea of manufacturing a product. I have read several books, and they all seemed to make it sound so straightforward, but maybe it was the books I chose to read.
I know some of this information sounds defeating, but I really am enjoying the challenge. There is just so much information you never hear about from anyone else. This process has been interesting to me and I love sharing the information I have gained in the process. My son made the comparison that even if I didn’t make any money, it would be like spending the money to get a college business degree. This is so true, I am thinking of a doctorate, and I get to do it hands on…and not sitting in a boring professor’s classroom. Running a business can be a journey that challenges you to develop new skills, overcome obstacles, and adapt to changing circumstances. The learning curve contributes to continuous personal growth, and I am not done growing.
Keep dreaming big everyone!