4. U.S. Pat. No. 5,713,081: Pantyhose garment
with spare leg portion.
5. Inflatable rug...convertible to a mattress, in
order to obviate the prior art problem of
storing or housing large convertible beds.
6. ―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
7. ―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.
10. 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
11. 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?
14. 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
15. 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!
16. 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‖
17. 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
18. 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
23. 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
24. 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
25.
26. 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?
