Mike Suman is an inventor and entrepreneur who has created 54 patents and numerous products. He hosts a weekly NPR radio show on innovation and has authored a textbook on turning ideas into businesses. In this workshop document, he provides advice on various stages of taking an idea from concept to commercial product, including prototyping ideas cheaply, testing the market and product with industry experts, trying not to hard tool until a customer is committed, and partnering with people who have complementary skills. He emphasizes the importance of testing ideas, having evidence of distribution, and selling like a passionate 14 year old to convince potential partners and customers.

1. Michigan Marketing Minds
Entrepreneur’s Workshop
February 10, 2015

2. Michigan Marketing Minds
Should Your Idea Become a Business?
February 10 @ Spark in Ann Arbor
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Michael Suman
michael@mikesuman.com 616-836-7015

3. Mike Suman
• Engineering at Oldsmobile GM Division
• VP New Biz/Sales/Marketing at Prince Corp
• Group VP Advanced Sales/PR/IT/Marketing for JCI Automotive
• 14 Years ago started Product and Market Development
• 54 patents to date
• Create products to manufacture and licensing to multiple markets
• Starting 4th year of producing and hosting weekly NPR radio show (Innovation Talk)
• Authored ‘Should Your Idea Become a Business’ used as a college textbook
• Supply products to multiple markets (ex: History Channel Show ‘Pawn Stars’™)
• Have licensed products for national sports organization (Major League Baseball)
• Advisor and recent board member for Inventor Networks in GR and Muskegon
• Guest speaker at national trade shows (The International Home & Housewares show and others)
• Advisor for organizations to help accelerate growth though new business development
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4. Execution:
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Opportunity
Ideation
Design
Prototyping
Market Testing
Value Story
(Biz Case)
Engineering
Tooling
Sales
Distribution
• Changing something in one area can change everything
• When you are a …………….the world looks like a ……………
• Must have evidence of a solid market before real spending starts
• Evidence of real distribution must be present always
• Top three questions are……….
Top Challenges

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• Top five answers to the same question
– Why are you doing this
• Because it has never been done
– Why are you doing this
• Because the world will love it
– Why are you doing this
• So I can work for myself
– Why are you doing this
• I don’t like my current job
– Why are you doing this
• I don’t want to be on my deathbed and never have tried
Making the transition from Inventor to Entrepreneur
What I hope to hear is “We have a committed distribution network”

6. Ideation:
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• Mock up the idea, the business case, and especially the distribution plan
• Is the team open to real critique’s (embracing devils advocates)
• Testing the solution before spending (does this thing do what it is suppose to?)
• Testing market before patenting (will it sell?)
• Testing in the targeted channel with experts in that field
• When does NO mean STOP?

7. Design: Always makes things better!
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• When is a design perfect? Don’t toss out great while waiting for perfect.
• Design can easily be the most influential step!
• Why build a 3D model to test if a visual story will work?
• Give your designer a thumbnail biz case.
$59
$89
$79

8. Idea Testing: Product and Market
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• Unchallenged Inventors can be the best or worst to test their own ideas.
• When the product and story is ready it must be tested in the target market.
• Personally I have not found great results from focus group testing.
• Need to find out if it has been in the market and failed.
• Use Google patents as a market research tool.
• All “evidence of value” must be third party endorsed or it can lack credibility.
• Do early “fake adds” to get directional feedback.

9. Fake Advertisements: Always get a response
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10. Property of Product and Market Development, LLC. All rights reserved.
Testing: Market / Product / Third Party Validation
Market Testing Product Testing Third Party Validation

11. Value Story: aka Biz Case
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• Most are way too complicated.
• All are filled with “best guesses” (can be dangerous if owner believes it).
• Cannot overstate a total understand of the existing market leadership.
• Executive summary's and visuals are key.
• Tone must be positive (but not over confident) with clear stage gates.
• Must include BFMEA (what could go wrong and if it does we will…….)

12. New Opportunity: Testing a new PMD Licensing Process
• Small upfront payment (cost recovery)
• Small royalty
• No min/no max royalty limits
• 6 month launch requirement
• Multiple market commitment
• 8 Year royalty starting at launch
• Retailer owns patent
OR
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$149,970
$12,759,948
Traditional
Single Retailer
Profit
Total Profit from
all Retailers
$2,742,940
$12,759,948
"Retailer First"
Profit
Total Profit from all
Retailers

13. Prototyping: Don’t build your first like it is your last
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• Mock ups work if it is software or physical product.
• Budget 4 times more than you think you will need.
• Can you soft tool to use pre production prototypes to test the market?
• Do not have to be perfect.
• Inventors fail to include lessons learned in next generation prototypes.

14. Property of Product and Market Development, LLC. All rights reserved.
Prototype all phases of execution: do it cheap and fast
Opportunity
Ideation
Design
Prototyping
Market Testing
Value
Story (Biz
Case)
Engineering
Tooling
Sales
Distribution

15. Engineering: Hire as a service be careful about partnering
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• It takes weeks to engineer but years to launch. Trading upfront services for
“share of future business” must be well written.
• Must have a clear “statement of work” and always include 50% for changes.
• Must agree on manufacturing process before engineering starts.
• Must have a clear understanding of supplier responsibility for prototypes and
production.
• Performance target metrics must be included in goals.
• Should include stage gate metrics with late penalties.
• Every change in assumptions must be documented.

16. Tooling: There must be clear evidence of a market
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• If possible try soft tool market validation before hard tooling.
• Must have eyes on tooling process regardless of where it is built in the world.
• Timing metrics with late consequences.
• Have the manufacture manage tool build but make it supplier agnostic.
• Must have visual quality “go” and “no go” standards with samples if possible.
• Tooling quotations must include first run approvals.

17. Companies seldom buy concepts: Patent Filing
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Property of Product and Market Development, LLC. All rights reserved.

18. Sales: The number one place most start ups fail
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• Selling Entry Points (on ramps)
• Finance – Design – Engineering – Purchasing – Sales – E Suites
• Pain Points
• Loss of Market Share – Innovators all left – Barrier of Entry gone
• Developing Evidence of Value
• 3rd Party Endorsement – Test Market Success – Patents - BFMEA
• Selling Tools and Styles
• Prescriptive Selling – Sell like a 14 year old – Creative Leave Behinds

19. Summary:
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• Bootstrap – Anything else is too scary.
• Test Ideation with mock up parts and distribution plans.
• Attend industry shows before you do anything.
• Test products and market with industry experts & mock up advertisements.
• Prototype fast and cheap.
• Don’t hide risk from partners and suppliers (or yourself).
• Try not to hard tool until a customer is committed.
• Partner with people that have different skills that you do.
• Sell like a 14 year old who’s life will end if they don’t get to the mall.

20. Entrepreneur Workshops
• Scott Taylor – SOLOSHOT
• Jeremy Lindlbauer – TurtleCell
• Barak Leibovitz – Seat Side Service
• Molly McFarland – AdAdapted
• Sandy Aldrich – Akability
• Mike Suman – Inventor/Entrepreneur

21. Next Michigan Marketing Minds:
March 10
Field Notes on Brand Positioning