I Have An Invention Idea But No Money – 8 Ways To Do It

Are you a creative and innovative type of person? Do you have an idea for an invention, but you do not have the money? You don’t have to go far. This is the right place for your ideas and your inventions.

If you are the inventive type and love the thrill of ideas and inventions, new product ideas may be your calling. 

The invention process requires a lot of brainstorming, testing, trial, and patent protection before you can launch your idea. It may be a unique idea that really can touch other people’s lives.

All these require a lot of time, effort, and money even to jumpstart your invention idea. 

A great idea is just the starting point. You need to work out all the other processes required for you to realize your dream.

Let’s take it one step at a time. You already have the first step in having an invention idea. You just need to know how you can turn your idea into a money-making machine. Let’s find out how to make money with your inventions and your options for your new ideas.

What Should I Do With An Invention Idea But No Money?

Having an incredible invention idea is a start. And before you can turn it into a profit, you will have to spend money first to build your new invention. 

But what if you don’t have the money in the first place? 

Don’t fret; we are here to share different ideas on how to make money from your invention. From selling your invention to starting a company and promoting your thoughts, there are many ways you can cash in.

Here are some ideas to inspire you to push through your new product ideas:

1. Examine Your Product or Service

A unique idea is very important. It may have come from a personal experience or your research. When drafting the details of your invention, you need to consider if this is really useful and something people will want to pay money for. 

You can conduct further research on your new invention through market research by doing surveys, focus groups, or feedback sharing. This is to have a greater appreciation of the specifications of your inventions as you can pick up new ideas on how to make your product better.

Find the right people or your target market when examining your ideas to have more reliable data.

Once you’ve collected enough data, you can view the results and see how they relate to your invention ideas. Their answers will help you verify the essentials of your invention, so you won’t be wasting any money.

2. Selling Outright

Another way to make cash with your inventions is by selling them outright. This means you will be giving up your overall rights and permanently transferring the ownership to the other person or company for an agreed fee. 

Everything from the upcoming commercial opportunities to future developments, including royalties, is no longer yours. This is a sure way to make a profit out of your invention idea. However, you won’t earn more money from it, as you’re not the owner anymore.

So you should think long and hard before you consider selling your innovations. When you sell, there’s no going back.

3. License Your Invention

If you have decided not to sell your inventions, licensing is another way to earn money. Licensing your invention means that you will still have the rights to the invention, and you can rent out the rights to use or sell it. 

You can provide an exclusive license to a company or one party or a non-exclusive license to more than one party. You can also set a time limit on the license or not, depending on your contract. 

In return for the right to use or sell your inventions, you can charge a flat rate or accumulate a royalty for each unit sold.

When patenting, you can ask the United States Property Office to validate your patent with a license of rights in the record of patents. Doing this means that you have agreed to license your patent.

If you are offering your patent to certain people or businesses, you may want to:

• Promote your product or patent in media production companies
• Increase your connections by attending innovation events or trade shows
• Search for manufacturers or likely users of the invention

Typically, once you find a potential party, you will have to negotiate any usage rights and royalty payments as part of your licensing agreement. That’s the starting point from which the potential money comes rolling in.

4. Create A Prototype

It’s about time to make your dreams into reality and to do so; you will have to build a model. Prototyping is the creation of the first sample of your consumer product. Having a working prototype is an important step in making your idea profitable and valuable.

Having a tangible product for your idea is a great way to ask for financial assistance to take the product to market further. 

Whether you decide to ask for help or not, you need to carefully think about using a nondisclosure or non-compete contract, particularly when your invention isn’t patentable yet. This is for the intellectual property protection of your new product.

It’s quite the feeling when you have the product you’ve created in your hands. You’ve already come so far!

5. File For A Patent

If feasible, get a patent. The US patent system is a first-to-file system. So, make sure you get your product patented as soon as possible.

It doesn’t matter now who came up with the concept first, but instead, the person who reveals it first to the public or files first for a patent owns the product. So submit your patent the first chance you get, okay?

The competition is high in this field, so before sharing your ideas, be sure you have made suitable steps to protect your ideas from copycats.

There are two types of patents: utility patents and design patents.

A utility patent is created to accommodate new processes and machines, while the design patent caters to producing new, non-obvious designs. 

Completing the paperwork for filing a patent may require the assistance of a patent professional and determine the qualified patent professional, you will have to:

• Ensure that everything is arranged. Such as your journal, notes, and the prototype.
• Verify that the expert is on the registry and duly listed with the United States Patent and Trademark Office (PTO).
• Talk about their professional fee before you start the procedure. If you don’t have enough budget, you can reach out to smaller firms.
• Do all necessary research to file your brand.

6. Establish A Business Plan

The next on the list is to develop a business plan, regardless of whether your design has been completed. Determine how much money you can afford to spend and which steps to take when developing and marketing your inventions.

If you have a problem with where to start with your business, you can check out SCORE, a voluntary organization that mentors people for free and gives advice to small businesses and startups.

You can also contact the US Small Business Administration or SBA to learn about their services for people with inventions. The Small Business Administration site gives information about business plans, financing, and other related topics to help you with your quest.

7. Look For Investors

What is the best way to earn money from your invention? Find investors or sponsors. Suppose that you have already finished and polished your prototype. It is now time to turn it into a profitable idea.

We know it can be challenging to look for investors or sponsors, but instead of finding one or two people to invest a large amount of cash, why not consider crowdfunding? Crowdfunding is the latest way to search for those who are willing to invest in your business, projects, and many more.

Websites like Crowdfunder and Fundable are just a few examples of crowdfunding.

Aside from crowdfunding, here are some ideas on how you can fund your idea:

• Check your financial status and see if you can finance with your own means. Try using Personal Capital to track your finances and link your bank account to the app.
• Ask for help from your family and friends.
• Search for private and government grants.
• Look for angel investors that can back up your invention.

[Related Read: I Need Money Now & Desperately – 23 Ways To Get Fast Cash]

8. Collateral Your Invention For A Bank Loan

Use your patent as collateral when you ask for a loan at the bank. Yes, it is possible. 

You might be surprised to know that it is normal to use patents as collateral for loans. Many companies, such as JP Morgan, Bank of America, Kodak, and Alcatel Lucent, issue patents as collateral.

Most of the patent owners are interested in leveraging the value of their resources rather than licensing it or creating a business out of it. Once the bank qualifies your patent as collateral, they will agree that it has importance and allow you to take a loan from them.

That’s when the real fun starts. You now have money, and you can start your business idea.

9. Get a Personal Loan

If you can’t find an investor, rely on direct lenders. Why them? Because there is a high approval rate for all types of consumers.

For example, if you need money for your invention but have a low FICO score, you can apply for a $5000 loan with bad credit scores. This amount could help you have a beginning capital for your invention without depending on investors.

Name it a business loan or a personal loan – it’s up to you. Before getting this money, shop around and see what loan providers are available in your state. In some states, certain lending financial products are prohibited. But many of them provide loans for people who want to start a business with an invention. Try your luck!

What Is A Patent, And How Might It Help You?

We have been discussing with you several ways on what to do with your invention and how you can earn from it. Did you notice how many times the word patent came out? Do you have any idea what it is? Let’s talk about patents and how they can help you with your invention.

A patent is an exclusive right granted for an invention that is a product that offers, in general, a new way of doing something or a new technical solution to a problem.

The process of applying for a patent requires you to disclose technical information about your creation to the public in a patent application. Getting a patent is submitting the necessary documents as a form of public disclosure covering your invention and product details. 

Seeking to patent your inventions is the best way to prevent your competitors from making the same product and selling them. According to the Patent Act 35, the United States Patent and Trademark Office (USPTO) will grant a patent to an inventor, which is mainly an exclusive property right over the invention. 

Keep in mind that not all inventions can be applied to be patent, whether it is useful or interesting. Creations that meet certain criteria can be the only ones qualified and granted a patent. There are many types of patents under the United States Law, and you have to ensure that your inventions are a good match to one of them.

Do I Get Paid For My Inventions?

Yes, you can get paid for your inventions. Depending on your invention, you can earn from it through selling, turning it into a business, and more. Inventors usually allow the manufacturer to make them and sell them in return for paying the inventor royalties.

Royalties can be the percentage of the net revenues or payments for each unit sold. On the other hand, the investor may sell all the rights to the invention for a lump sum of money.

A license may be exclusive if there is only one licensee to develop the invention or non-exclusive if there are a number of manufacturers licensed to make it. Investors can benefit from these through sub-licenses depending on the terms of the agreement between the inventor and the licensee.

How Much Money Can Inventions Make?

One of the main reasons inventors choose to run after their invention is the potential income they can earn from it.

By realizing an idea, a successful and unique invention can make millions of dollars and even more. For instance, a basic kitchen scrubbing pad by Scrub Daddy has made tens of millions of dollars from sales both online and in-store. As simple as that product was, it had the potential to expand though only a few investors could actually see it that time.

Investors are proficient in looking for a unique product and conduct research, development, and promotion to earn money from their inventions. So you need to factor these in when you try to sell your product to your potential investors.

How To Present Your Invention Idea To A Manufacturer Company?

Gaining approval from potential investors or a manufacturing company can sometimes be demanding and challenging. This is common because some product development firms do not gamble with profits by producing unproven and risky commercial products. Just because it’s a new idea does not mean a lot of people can adopt it.

Granting commercialization for new products takes a lot of approvals from different people. Hence, you need to consider these next steps if you’re thinking of presenting your invention to your potential investors.

• Your product should be original – exceptional ideas are the ones that haven’t yet existed in the market. When making an invention, it is advised to do an investigation first to make sure there are no products identical to yours.
• Consult a qualified engineer – after you have proved that your idea is original, you have to ask a qualified engineer who is an expert in product development and design.
• Secure your invention idea – to do so, never share your product ideas blatantly with others. Execute a nondisclosure agreement with the engineer or the company to protect your product and your proprietary rights.
• Create a product model – After you have set up the nondisclosure agreement (NDA), you can now create a computer-aided design (CAD). A model of your product is usually a 3-D model that will demonstrate your concept’s dimension and determine its manufacturability.
• Business plan – After making your model and prototype, you can now present your business plan. After the company approves the production of your product, the next thing they will ask is the quantities of your product, the distribution channel, and related costs.

It’s better to prepare ahead and be ready when those executive directors bombard you with questions and future plans for your inventions.

In Summary – I Have An Invention Idea But No Money

Great and unique ideas are sometimes hard to come by. But when you do, you should make sure that you use this idea for a new product that can benefit you and others. Only if it is marketable can it be profitable for you in the long run. 

It can be a bit challenging and frustrating, but at the same time, incredibly rewarding, as you get to learn new things that you can further use in your life.

Being an innovator is not easy. Inventing is not for everyone. The benefits should outweigh all the challenges that may come along the way. 

As with most things in life, it isn’t free. And for you to realize your idea, you need to spend money first. And if you do not have the money to do so, never stop believing that you can make it happen. Follow the ways mentioned in this article, and you soon may fulfill the idea that just so happened to pop into your head one fine day.