Young Inventors International
VOLUME 2, ISSUE 1 MAY 2004
Q&A WITH AN INVENTOR
INVENTOR'S REALITY CHECK
KEYS TO ENTREPRENEURIAL
SUCCESS
MARKETING YOUR
INNOVATION
MAY 2004
We l c o m e M e s s a g e f r o m t h e C E O o f t h e C a n a d i a n
Intellectual Property Office
►David Tobin
It is my pleasure to write this
vide the foundation for invest-
As young inventors, I urge
inaugural message for the re-
ment, partnership, and growth.
you to pursue your dreams
launched Innovative Progress
Leading-edge industries are in-
with your youthful exuber- Editorial
2
Journal. We at the Canadian
tensive users of IP.
ance, vitality and, creativity. Marketing Your Innovation
3
Intellectual
5
Property
Research
Inside this issue:
Office
links highly innovative industries
(CIPO) are very impressed
with increased patenting and
We at CIPO are available Intellectual Property
and stand ready to assist you Keys to Entrepreneurial Success
with the initiatives taken by
remains a key to innovation. IP
in protecting your IP and give
Young Inventors International
assists in the commercialization
you advice as to how best to
(YII). We know the Inventing
of research and development,
do so.
the Future Conference YII held
in Toronto in August 2003 was
and protects investment.
a resounding success.
The timely granting of IP rights,
CIPO
was happy to participate.
global,
knowledge-based
economy of the
21st century is
closely linked to
innovation.
sioner of Patents, Registrar of Trade-marks and
Chief Executive Officer of
novation and the creative spirit is
the Canadian Intellectual
intellectual property (IP), a fun-
CIPO’s mission and mandate.
Property Office (CIPO).
damental pillar of the knowl-
CIPO is also responsible for the
CIPO is responsible for
edge economy, has grown
substantially in both impor-
administration of various IP statutes. As part of Canada's ambi-
administering Canada’s
intellectual property sys-
tance and recognition, and
tious innovation agenda, CIPO
tem, which includes pat-
plays a pivotal role in stimulat-
has taken several steps to en-
ents, trade-marks, copy-
ing innovation and economic
sure that Canada is in a position
rights and industrial de-
growth.
to thrive in the future global IP
sign and integrated circuit
environment.
topographies.
crystallizes
knowledge,
creation, and innovation to pro-
Talking with an Inventor
13
You can find out
more about us at our Web site:
www.cipo.gc.ca
Publisher:
Anne Swift
Mr. Tobin is the Commis-
In recent years,
IP
11
supporting and encouraging in-
“As young inventors, I urge you to
pursue your dreams with your
youthful exuberance, vitality, and
creativity.”
9
Industrial Design
Best wishes in your future Raising Capital
endeavours.
About YII
David Tobin.
The
Inventor’s Reality Check
7
Editors:
Anne Swift
Elinor Mintz
Creative Director:
Elinor Mintz
Coverpage Design & Logo:
Alana Ruoso
Coverpage Illustration:
Michael Swift
Article Illustrations:
Dennis Karpov
Michael Swift
Advertising Information: Rates
and deadline information available.
Contact Anne Swift at 905.833.4842
or via email: innovativeprogress@
younginventorsinternational.com
16
18
VOLUME 2, ISSUE 1
PAGE 2
Message from the Editors
Welcome to the first issue of the re-
► Anne Sw ift & Elinor Mintz
launched Intellectual Progress, a quarterly
sight, we have decided to change the
format and content of the journal to pro-
journal published by Young Inventors In-
vide the young innovator with useful ad-
ternational (YII). After an eight-month hia-
vice.
innovative journey toward advancing
innovation in one way or another.
The journal will evolve to best suit the
tus, we have decided to energize the journal, giving it a new title - Innovative Pro-
In this issue of the new and improved
we hope to include contributions from
gress. We feel that the new title more ac-
Innovative Progress, you will find practi-
authors around the world, in addition to
curately captures the “innovative” dyna-
cal and exciting articles from recognized
expanding the range of topics covered.
mism of our readers and contributors. In
experts in various fields, including inven-
this issue, we are proud to have the inno-
tors, entrepreneurs, and intellectual prop-
We would love to hear your comments
vative efforts of our members acknowl-
erty and marketing specialists. We are
concerning this issue and suggestions
edged by David Tobin, the CEO of the Ca-
extremely grateful that these prominent
for future issues at:
nadian Intellectual Property Office and a
individuals have found the time to contrib-
leading figure in the field of innovation.
ute their insight to this up-and-coming
publication.
innovativeprogress@
younginventorsinternational.com
grown to more than 1000 members and
supporters around the world. YII is the
We are very excited to bring you the
We look forward to sharing this issue
practical advice of experts – advice that
with you and hope that these articles will
only organization in the world that provides
you can use to bring your own ideas to
assist you as you pursue your innova-
support and resources to inventors and
fruition.
tive ideas.
innovative entrepreneurs under the age of
sonal stories shared by the journal’s con-
35. Seeking to provide this growing and
tributors will hopefully enhance your
diverse audience with guidance and in-
knowledge as you embark on your own
needs of our readers. In future issues,
Since the journal’s last issue, YII has
The information, tips, and per-
Innovators’ Event of the Year
Join more than 100 young inventors and
bigger and better, including expert speak-
innovative entrepreneurs from around the
ers on the topics of intellectual property,
world at Young Inventors International’s
raising capital, and commercialization, as
third annual Inventing the Future Con-
well as networking events and an innova-
ference in the Fall of 2004.
tors’ gala. The Conference is also a
great opportunity to publicize your pat-
Last year’s Conference was hosted by
ented invention or business!
the Centre for Innovation Law and Policy
at the University of Toronto, bringing to-
Further information will be available in
gether approximately 100 participants.
July 2004 on the Young
Last year’s event featured expert speak-
International’s web site at:
ers on intellectual property protection,
www.younginventorsinternational.com.
marketing, and commercialization, as
Be sure to pencil in this two-day confer-
well as personal stories and tips from
ence,
entrepreneurs and successful inventors.
knowledgeable, creative, and driven indi-
and
network
with
Inventors
Please visit page 15 for photographs
from the August 2003 Inventing the Future Conference and page 18 for pictures from the 2002 Conference.
If a man does not keep pace with his
companions, perhaps it is because he
hears a different drummer.
Let him step to the music he hears,
however measured or far away.
-Henry David Thoreau
interesting,
Money Grows on the tree of
Persistence
viduals from around the world.
This year’s event promises to be even
-Japanese Proverb
VOLUME 2, ISSUE 1
PAGE 3
Marketing Innovations to Consumers
To market existing, established, and
known products is hard enough. It is
1. PLACE YOUR PRODUCT FIRMLY IN
even more difficult to market a new
A RECOGNIZABLE CATEGORY
Innovations are particularly intimidating
product, even when consumers can
for many customers while certain other
►Detlev Zwick
gate-Palmolive made sure consumers
see Colgate 2-in-1 toothpaste & mouthwash as a form of toothpaste with the
added benefit of a mouthwash effect.
place it in an established product
That way consum-
category. Whichever way you look
ers’ cognitive work
at it, it’s darn hard to market inno-
to understand the
vations - and do not let anyone tell
product and evalu-
you otherwise. On the flip side,
ate its strengths
there is nothing more exciting than
and
weaknesses
marketing a really new product
was
minimized
and as management guru Peter
and the intimida-
Drucker once said: “Marketing and
tion effect dimin-
innovation produce results; all the
rest are costs.”
ished. By avoiding
potential
consumer
confusion
The trouble with marketing innova-
regarding product
tions is obvious when you think
category, Colgate
about it. Innovations are fraught
with uncertainties of all kinds and
that is what makes marketing them
2-in-1
Illustration by: Dennis Karpov
“Marketing is the mediating institution between the innovation & the consumer.”
-Detlev Zwick
difficult. Consider a few simple
toothpaste
& mouthwash became one of the
most
successful
questions: What is the best marketing
products are not. There are many rea-
new product launches in the company’s
(product-price-channel-promotion) mix
sons for why this may be so, for instance,
history.
to use for initial product launch? Which
doubts about ease of use and uncertainty
market segment should be targeted first
and which ones should be targeted later
about product performance. A less wellknown but extremely important reason is
2. GET TO KNOW YOUR CUSTOMERS
Innovators love to create new things and
as the product matures and competition
that consumers often cannot place inno-
often become very attached to them.
moves in? What will the pace of adop-
vations firmly into one, and only one, fa-
Emotional attachment to an invention is
tion (i.e., how well the product is re-
miliar product category. Consumers use a
understandable, but it poses a problem
number of simple decision rules,
when it comes to marketing. The inven-
called heuristics, to make sense of
tor, seduced by the “coolness” and
new products. When using heuristics,
“amazing capabilities” of his/her invention
consumers essentially draw from an
is often the worst judge of what matters
existing stock of knowledge to inter-
most in a product: consumer perception
pret the selling proposition presented
of the product’s benefits. It may not be
to them. Consider Colgate 2-in-1
easy to admit but ultimately the value of
ceived into the market) be for this prod-
toothpaste & mouthwash. Over the years,
an invention is neither judged by the in-
uct? (When) will our technology be obsolete? Clearly, navigating the uncertain
consumers have adopted two different
oral care categories for toothpaste and
ventor, nor the angel investors, nor the
venture capitalists, but by the consumer.
waters of innovation marketing is tricky
mouthwash. Unless you have a product
So how do we know what consumers
and many well-rehearsed marketing
that is strong enough to create its own
think?
principles simply don’t help much. So
new category, it makes a lot of sense to
how do you survive? Below are three
“attach” your innovation to an existing
points of advice that every marketer
product category to enable consumers to
charged with marketing innovative prod-
use their heuristic skills to make sense of
ucts should keep in mind:
the offer. Therefore, marketers at Col-
“The inventor, seduced by the ‘coolness’
and ‘amazing capabilities’ of his/her
invention is often the worst judge of what
matters most in a product: consumer
perception of the product’s benefits.”
First, forget about focus groups and market surveys that marketers effectively use to research the market
VOLUME 2, ISSUE 1
“Today's consumers are timestarved and demanding. You
need to have a good story to tell
and you need to tell it fast.”
for more traditional and established
products. As far as innovations are concerned, these research techniques are
PAGE 4
sources so thinly that no segment can
ity to help spread adoption to adjacent
be conquered at all. Therefore, unfo-
market segments. Of course, capturing
cused marketing may spell doom for the
innovation regardless of its intrinsic mer-
more segments likely means making
more money on your innovation. It also
its. This point can hardly be overstated.
allows the inventor to extend the life cy-
Initial target market selection should be
guided by a rigorous weighing of the
consumer’s perceived cost/benefit ratio
cle of the invention by continuously administering small changes to the initial
product that specific segments perceive
as valuable improvements.
bound to fail simply because customers
may find it difficult to articulate a need,
In essence, marketing innovations is
preference, or desire for products that
they cannot see or easily understand.
difficult and exciting, but most of all it is
Ask yourself whether the Walkman
product, uncertainty is a constant com-
could have been the result of a consumer focus group? Rather than the
panion in the marketing process. For
many reasons, the odds are stacked
traditional approaches, successfully re-
against success. Good marketing, how-
searching
the innovation market re-
ever, can make the difference between
quires leaving the lab and getting down
market failure and commercial triumph.
and dirty with lead users. Lead users
Innovators should regard marketing as a
are individuals that are willing to adopt
mediating institution between their inno-
and try out innovative products before
these products are introduced to the
mass market. In a sense, they are innovators in their own right, as they are will-
essential. Because of the nature of the
Illustration by: Michael Swift
If you have a great product &
market it wisely, you could very
well hit the jackpot.
concepts. Lead users are the heroes of
because this is ultimately what deter-
innovation marketing because they pro-
mines product adoption. In other words,
vide us with a glimpse of what future
innovation marketers have to ask themselves: how compelling is the reason for
to improve novel products to address
real-life problems that your competition
may have not yet seen or heard.
a consumer to buy this product? Preparing and presenting a clear, simple, and
unified story regarding the benefits of
the innovation is the key to success.
3. CHOOSE YOUR MARKET SEGMENT AND YOUR STORY…WISELY
Selecting the best target market for your
product launch is no easy task. Innova-
Today's consumers are time-starved
and demanding. You need to have a
good story to tell and you need to tell it
fast. To practice, put yourself in the con-
tions are by definition radically new
sumer's shoes and start by answering
products, and reliable market knowledge
these two questions: What is the one
concerning adoption rates is hard to ob-
thing your product can do for me? Why
is it better than what I currently use?
tain. If the wrong market segment is initially targeted, you may see your competitor take the gravy by owning the
more profitable segment before you can
recover from your mistake. Distributing
the risk over too many market segments
has been shown to be ineffective in
most cases because such a strategy
requires the company to spread re-
marketing, consumers learn how to approach, imagine, and interpret the new
product. Through consumers, marketers
ing to take risks with new and unproven
needs may look like. They teach us how
vations and the consumer. Through
Finally, selecting and communicating
with the initial target market must take
place with the future in mind. That’s why
it’s called the initial target market. In addition to considerations regarding projected rate of adoption and segment
profitability, good innovation marketers
select the initial target market for its abil-
learn how to approach, imagine, and
create new innovations. If done well,
marketing is a beautiful dialogue that
benefits everyone.
Detlev Zwick holds a Ph.D. in Marketing
from the University of Rhode Island. He
is currently Assistant Professor of Marketing at the Schulich School of Business at York University, Toronto, Canada. His research and teaching interests
revolve around strategic marketing and
consumer behavior issues in electronic,
mobile, and high-technology markets.
In January of 2004, the Financial Times
of London ranked the Schulich School of
Business at York University among the
top 25 MBA programs in the world and
number one in the world for return on
investment among two-year MBA
programs.
VOLUME 2, ISSUE 1
PAGE 5
I n t e l l e c t u a l P r o p e r t y:
Ta k i n g Ad v a n ta g e o f yo u r I d e a o r I n v e n t i o n
►Tom Boyd
not be the first to come up with a particular innovation. Furthermore, while the
databases. The Canadian (www.cipo.gc.
ca) and United States’ (www.uspto.gov)
innovation may seem like a great idea,
databases are two good places to start,
time. You’ve often wondered: will it
the consumer may not beat a path to your
but there are many others available on
really work? Where do I start? These
door. Taking advantage of your idea or
the Internet. Patent applications and
So you have a great new innovative
idea? What should you do?
Innovative ideas come to you all the
are valid and important questions and
grants are often published long
there are many more. There are laws —
before the product hits the
Intellectual Property (IP) laws — that
marketplace.
govern inventions and creative works.
wealth of information that can
IP laws protect trade-marks, copyrights,
be gleaned from these data-
industrial designs, integrated circuit to-
bases. For example, in addi-
pographies, and patents. Patents cover
tion to determining whether or
inventions such as a process, a machine, a manufacture, composition of
not your invention is new, you
may determine the trends that
matter, or any new and useful improve-
are occurring in the field of
ment of an existing invention.
invention. You may also find
There
is
a
new products that are about
Innovation is one of the essential ele-
to be unveiled. You may avoid
ments of any successful business.
spending money on research
Whether it is a new package design,
logo, name, or a unique product - what
and development if someone
Illustration by: Dennis Karpov
Taking your idea from thought to reality.
has already secured a patent.
you do with it can mean success or, failure - if done incorrectly.
Your innovation could be on the cutting
edge of the future. It could represent lots
of money for you and anyone who backs
innovation may very well mean wearing
Everyone in business should know what
down the tread on your boots and shed-
the competition is doing. The patent data-
ding some tears along the way.
bases often disclose this information long
you and your innovation. It is important
Is your idea new?
There are a number of places to look to
to remember that huge corporations
find out if someone has come up with a
weren’t always huge.
Often individuals and
small
companies
similar idea to your
“Taking advantage of your idea or
innovation may very well mean
wearing down the tread on your
boots and shedding some tears
along the way.”
before the marketplace does. There may
be a technical problem that has stalled
the development of your invention. The
solution may be found in existing patent
documents.
own. If your idea is for
a consumer product,
The patent databases can also be used to
check
Web
find new products. There may be an op-
sites, and catalogues.
portunity to exploit some of these prod-
You can also visit trade
ucts. If an inventor fails to file a patent
shows
examine
application in Canada within a certain
covered penicillin said, “It is the lone
trade publications in the field of your in-
time period, it is open for anyone to make,
worker who makes the first advance in a
subject: the details may be worked out
vention. You may want to ask general
questions and keep the details of your
sell, or use that invention here in Canada.
To elaborate further, you will not be able
by a team, but the prime idea is due to
idea to yourself. Keep in mind, patent
to legally acquire a patent or export the
the enterprise, thought and perception
rights in many foreign countries will be
product to any country where the inven-
of an individual.”
jeopardized by uncontrolled disclosure
tion is patented, or have exclusive rights
prior to filing a patent application.
to it in Canada; however, it could be an
generate revolutionary inventions. For
instance, Sir Alexander Fleming who dis-
stores,
and
Innovation is the lifeblood of any suc-
opportunity you may want to pur-
cessful business. So where do you
In the very early stage of your research,
start? Always be mindful that you may
you should conduct a search in patent
sue.
VOLUME 2, ISSUE 1
PAGE 6
Finally, these databases are underused
when it comes to market studies and locating potential manufacturers. For example,
there are more than 200 automatic toilet
seat lifters in the U.S. patent database.
There are very few, if any, that have made it
to the marketplace. This is an example of
the lack of consumer interest in the field of
this type of invention — a first-hand example of avoiding an expensive market study.
►
Tom Boyd is a business development advisor for intellectual property at the Canada/
Novia Scotia Business Centre. He works for
the Canadian Intellectual Property Office.
► Here are 12 questions that you need to answer in order to
evaluate your idea:
1. Is it new or has someone else already come up with it?
2. Could it be a useful marketable product?
3. Do I know if I can protect it?
4. What’s so good about my invention?
5. Do I have a marketing plan?
6. Who would use and buy it?
7. Who is going to oversee the development of the invention?
8. How much capital will be needed and where will it be used?
9. What will it cost to produce and what will it sell for?
10. Who will make it and where will it be made?
11. Who will distribute it and how?
12. What is the return on the investment and when can it be expected?
I n v e n t i o n s : D i d yo u k n o w … ?
►Elinor Mintz
► Braille was intended for military use: A French army Captain, Charles Barbier de la Sierre, developed what he called “night writing” for use by military soldiers at night so that the soldiers wouldn’t have to speak during combat. His system used a series of 12
raised dots that represent sounds; the dots could then be combined to form words. The army rejected the proposed system because it
was too complicated. Barbier then adapted his system for use by the blind, but the 12-dot phonetic system was still too difficult to use.
Louis Braille, who became blind after injuring himself in his father’s workshop at the age of three, recognized the usefulness of Barbier’s system and worked to simplify it in his teenage years. Braille condensed the system so that it was based on normal spelling and
used six dots to represent the standard alphabet of Braille.
► Cat’s Eye Reflectors - the result of a near-accident experience: Cat’s Eye Reflectors are glass and rubber reflectors that are
placed on the road and reflect the light of car headlights, allowing motorists to see the curvature of the road at night. Percy Shaw from
Yorkshire, England, invented this device in 1933 after he was saved from going off the side of a cliff on a dark and winding road by a
cat whose eyes reflected in his headlights. Shaw’s invention mimics the reflective quality of cats’ eyes.
► Sheer fabric and plunging necklines led to the invention of the Brassiere: In the early days of the 1900s, the only undergarments available for women were corsets stiffened with whaleback bones. After purchasing a sheer evening gown for a social event,
New York socialite Mary Phelps Jacob found that the whaleback bones were quite visible around the plunging neckline and under the
sheer fabric of her beautiful dress. Jacob decided to use two silk handkerchiefs and some pink ribbon as an alternative to the corset.
This laid the ground for the first modern brassiere, and Jacob received a patent for it in 1913. Jacob did not enjoy running her own
brassiere business, and eventually sold her patent to the Warner Brothers Corset Company in Connecticut for $1,500; over the next 30
years, the company made $15,000,000 from the brassiere patent.
► Velcro— inspired by nature: George de Mestral, a Swiss engineer, invented Velcro in 1948. Mestral noticed that burdock seeds
(burrs) stuck to his clothing during hikes because the burrs had hook-like protrusions that attached themselves to cloth. Mestral used
the burr as a model for Velcro: one strip of Velcro consists of nylon with loops, and the other strip consists of hooks. Mestral patented
his Velcro invention in 1957. Velcro was originally used to fasten clothes; today it is used to fasten other things, including handbags
and shoes.
► War-time radar research led to the accidental invention of the Microwave Oven: In 1946, the engineer Dr. Percy LeBaron
Spencer was conducting radar research for the Raytheon Corporation using magnetrons (vacuum tubes that produce microwave radiation). One day at work, Dr. Spencer found that the candy bar in his pocket had melted completely. He realized that body heat and indoor temperature were insufficient to melt the chocolate bar, and he hypothesized that the bar was melted by the microwaves with
which he was working. After further experimentation with microwaves and food, Dr. Spencer proved his hypothesis that microwaves could cook food at a rapid pace, even faster than conventional heat ovens. The Raytheon Corporation produced the first
commercial microwave oven in 1954, calling it the “1161 Radarange.”
VOLUME 2, ISSUE 1
PAGE 7
B u i l d B u z z : 8 K e ys t o E n t r e p r e n e u r i a l S u c c e s s
►Martin Perelmuter
Whether you are launching a new busi-
and sound the same, you must find a
pelled to share your vision and passion
ness or inventing a new product, your
way to distinguish yourself from the
with other people. If you don’t believe
success will ultimately depend on your
ability to build buzz within your industry.
pack, find your unique position, and exploit these differences to your advan-
that the more you give, the more you
get, don’t expect anyone else to. Be
Buzz is not hype. It is genuine sustain-
tage. You can’t build buzz unless people
generous and you will build buzz.
able excitement about your business,
remember you, and if you are not
product, or service. Buzz is contagious,
unique, you are not memorable.
infectious,
“Passion and enthusiasm are
crucial to building buzz...if you are
form your idea
not excited about what you’re
into a phedoing, it’s impossible to get others
nomenal sucexcited.”
cess.
and can trans-
4. The Contagion of Emotions
Much has been written about Emotional
3. The Paradigm of Abun-
Intelligence or EQ over the past several
dance
There are two ways to look
years. Studies have repeatedly shown
at the world. The first is to
success than IQ. What we are talking
see it as if you are operating
about here is your ability to manage
that EQ is a far better predictor of future
within a fixed pie in which
change and relationships. The better
One of the most interesting aspects
about our business, Speakers’ Spotlight,
everything you do is a zero-sum game.
If you win, someone else loses. The
you learn to do this, the more buzz you
will build. Like buzz, emotions are con-
is the opportunity to work with and learn
second way is to look at the world as
tagious, and for this reason, emotions
from the highest achievers from the
can contribute toward building
worlds of business, politics, sports, me-
buzz.
dia, academia, and culture. The following are eight core values and key characteristics that I’ve observed in the peo-
5. Humility & Ego
Ego is not necessarily a good
ple I’ve worked with, all of whom have
or bad thing – it’s neutral. It
built great buzz around themselves and
takes a healthy dose of self-
their endeavours:
confidence to aspire to greatness in any field, so a large ego
1. Passion & Enthusiasm
The road to entrepreneurial success is
never an easy one – if it was, more peo-
can be an important asset in
ple would travel it. Your passion for what
great impediment if it crosses
you are doing will sustain you through
over into arrogance. My man-
the most difficult parts of the journey,
tra is to take my business seri-
and fuel your desire to keep on going
ously, but not take myself too
when the obstacles you face seem in-
seriously. Remaining humble
surmountable. Passion and enthusiasm
and looking for ways to learn
are crucial to building buzz, because
from others is critical to building
buzz is about generating energy and
buzz.
pursuing your goals. On the
other hand, ego can also be a
excitement; if you are not excited about
what you’re doing, it’s impossible to get
6. Simplicity & Respecting
others excited.
Ignorance
We are taught in our society to
Illustration by: Dennis Karpov
respect
intelligence,
but
re-
2. Uniqueness
It is critical that you find a compelling
containing infinite possibilities: the more
specting ignorance is actually far more
point of difference that separates you
you help others, the more opportunities
important to building buzz and entrepre-
from everyone else in your industry. In a
will come your way. Buzz is spread by
neurial success. Assuming igno-
world in which so many companies look
the kindness of strangers, who feel com-
rance forces you to acknow-
VOLUME 2, ISSUE 1
PAGE 8
ledge that your customers are unfamiliar
an idea becomes stale, buzz dries up,
Martin Perelmuter, LLB., is the Presi-
with your product, which in turn encour-
and it’s as good as dead. As a result,
dent and Co-founder of Speakers' Spot-
ages you to craft a message that can be
you need to constantly look for creative,
light (www.speakers.ca), Canada’s most
easily understood by your potential cus-
innovative ways to renew your vision,
innovative speakers bureau, represent-
tomers. The simpler you can make your
passion and purpose. In short, if what
ing extraordinary speakers, leading
value proposition, the more widely ac-
you did yesterday, still sounds good to-
thinkers, and inspiring individuals.
cessible it will become. In a world of too
day, you haven’t done enough today.
Speakers' Spotlight was selected by
many choices and too much information,
this is a critical concept.
Profit Magazine as one of the 100 fastest growing companies in Canada, and
Remember, buzz can only be spread if it
8. Authenticity & Trust
Buzz travels best through channels built
on trust. In a world where the public has
can be easily explained, so the simpler
lost confidence in many of our major
companies).
you can make your message, the more
institutions (big-business, political, and
powerful it will become.
religious), entrepreneurs have a tremen-
Martin can be reached at :
dous opportunity to earn the public’s
1-800-333-4453
trust. So walk your talk, keep your prom-
or by e-mail at :
ises, and always exceed expectations.
[email protected]
7. Creativity & Innovation
Buzz is about newness. Buzz needs
is listed in the PROFIT 100 (Canada's
authoritative ranking of high-growth
ammunition to continue to spread. Once
7
INNOVATIVE WAYS TO USE COFFEE
by
by Elan
Elan Baron
Baron
1. Refresh senses by smelling coffee beans between fragrance (perfume or cologne)
testing
2. Repelling ants
•
Ants hate coffee and will not cross over it. Sprinkle coffee grounds outside doors and in
cracks if you’re having an ant problem in your home.
3. Coffee is a good fertilizer
•
Fertilize your garden or houseplants. If you have left over coffee in your pot (without
cream and sugar) use it to occasionally water your plants
4. Give brown or red hair a shine
•
Rinse your hair with coffee for a rich and shiny colour (for brunettes & redheads only!)
5. An open dish of ground coffee in the fridge or freezer will absorb bad odours
6. Flavours food
•
Gives sauce more brown colouring and a less acidic flavour
7. Remove bad odours from your hands (e.g., onion or garlic)
•
Rub hands with used coffee grounds. But, of course, to remove the coffee smell you'll
need to use soap and water!
VOLUME 2, ISSUE 1
PAGE 9
Evaluating the Commercial Potential of your Innovations
►Bob Huehn
Thinking About Market Potential:
from two to seven years or more of
steady work, expense, and refinement
product that doesn't sell.
Innovations begin as brainwaves – you
to launch a new product into the market-
say to yourself: “there has to be a better
way”, or “this is crap; I could build it bet-
place.
How well will your product sell?
The answer to this key question de-
ter myself!”
Unless you receive truthful advice on
the market potential of your product, you
the idea, and the resources that you
may commit too quickly to forking over
thousands of dollars. Be careful not to
it may take anywhere from $5,000 to
$15,000 to develop a basic working pro-
rush for a patent too early, mistakenly
totype, another $8,000-$20,000 to fi-
believing that a patent will lead to suc-
nance the legalities of protecting your
cess in the market. Although such suc-
idea, from $20,000 - $50,000 for mass
cess is not impossible, you must be
production tooling, and still another
aware that approximately 97% of pat-
$25,000 to $50,000 for brochures, packaging, and other sales materials.
Such ideas have no com-
mercial value and cannot be protected
“Just as most inventors do not have
the expertise to patent their own
inventions, most lack the know-how
to determine the realistic commercial
potential of their inventions. ”
pends on the quality and originality of
One often hears
ents do not make money for their inven-
people say, “I had this or that idea years
tors. You don’t want to invest your time,
ago but never did anything with it. Then
along came another company and
money, and effort into a project or
without further work.
invest in bringing it to market. Typically,
While the above estimates are based on
my experience as an analyst, they are
ended up making a mint off that prod-
supported by Dr. Tom Astebro’s re-
uct.
reason that the individual with the
search which found that the average
development costs for the highest
idea never did anything to bring it to
rated invention submissions were
fruition is because it takes a lot of
$148,000.1
In light of this expense,
hard work to successfully engineer,
the cost of an honest reality check is
protect, manufacture, and market a
a bargain.
But it was my idea!” The likely
product.
If you have a highly rated, original con-
Let’s assume that you have a good
cept the chances of success are about
product idea and are wondering what
6 out of 100, but could be as low as
to do next. First, be wary of lavish
praise of both your family and your
1 in 100, or even lower, depending on
the nature of your market. Do not skip
friends. Unless they are prepared to
the vital stage of evaluating your idea
invest their own money into your ven-
before moving ahead with your pro-
ture, their encouragement may not
really be all that helpful. Innovators
ject. Just as most inventors do not
have the expertise to patent their own
quickly find that they need to invest
inventions, most lack the know-how to
money to prototype, refine, legally
protect, tool up for production, etc.
determine the realistic commercial potential of their inventions.
Lots of time, effort, and monies are
To avoid making costly mistakes, you
also needed to prepare promotional
materials. It also can take anywhere
1.
Illustration by: Dennis Karpov
need to create a strategic plan that
avoids the pitfalls. While established
Thomas Astebro, an Associate Professor in the Department of Management Sciences at the University Of Waterloo did an intensive study of over 1000
inventors who were past clients of the Canadian Innovation Centre between 1976 and 1993. The results of the study indicated that while the average development cost of an invention was estimated at $148,000, the maximum spent to develop one particular product was $1.8 million. “The Return to Independent
Invention: Evidence of unrealistic optimism, risk seeking or skewness loving?” in the January 2003 The Economic Journal is part of a series of publications by Astebro and colleagues that began in 1999 and continued through 2003. Recent papers on specific aspects of commercialization can be
found at www.rotman.utoronto.ca/bicpapers/
VOLUME 2, ISSUE 1
companies can write off a mistake of
$250,000 without significant damage,
independent inventors don’t have the
luxury of making mistakes of this magnitude.
So what is the likelihood that you
PAGE 10
stage could correctly predict the suc-
Founder and President of Pro Inventor
cess or failure four times out of five.
Associates in Sauble Beach, Ontario.
Astebro’s research also showed that
At Pro Inventor Associates, Bob pro-
more people got their products to mar-
vides practical advice to inventors with
ket through venturing (starting their own
company to make and market a product) than through licensing.
respect to the commercialization of their
Other organizations that Bob supports
have found a winner? For every 100
ideas that were submitted to the Cana-
The bottom line is to assess the
dian Innovation Centre for evaluation of
vative ideas, incorporating various meth-
their commercial potential, only 25 re-
ods of evaluation that have proven rates
of success.
ceived favourable results. Of these 25
strengths and weaknesses of your inno-
invention concepts only 7 were actually
turned into products in the marketplace,
For 22 years Bob Huehn has worked as
and of these only 3 ever made a signifi-
a professional Invention Consultant: 18
cant profit.
of those years as an Invention Services
Dr. Astebro found that the evaluation of
commercial viability at the early concept
Analyst at the Canadian Innovation Centre in Waterloo, and currently as
Cartoon: Courtesy of Tuvia Mintz
innovative concepts.
the
are listed on www.inventored.org/huehn.
Call 519-422-2999 or 1-8-PRO-INVENT
(Canada and USA only) for expert advice or contact Bob via email at:
bob.huehn@ sympatico.ca
The richness of human experience
would lose something of rewarding joy
if there were no limitations
to overcome.
-Helen Keller
VOLUME 2, ISSUE 1
PAGE 11
I n d u s t r i a l D e s i g n e r — An I n v e n t o r ’s C o m pa n i o n
►Maria Cheung
What is Industrial Design?
Look around the room in which you are
dents must first develop their drawing skills
uct industries; and the medical profes-
and master the basics of design and model
sion; others work as freelance industrial
sitting. Perhaps in your immediate sur-
building. In their final two years, they further
designers.
roundings there are a few pieces of fur-
develop their knowledge of materials, hu-
niture, a computer, a radio, and a pen.
man factors, computer applications, and
Anyone wishing to develop an idea for a
In some way, industrial design has impacted each and every one of these
methods of problem solving. In their last
two years, students also work on compre-
marketable product should seek the assistance of an industrial designer be-
items.
hensive projects at the design studios on
cause industrial designers can help to
campus. An internship is required
develop a cost-effective product for
between the third and fourth years
manufacturing with the best possible
of study. Students are given a list
design for usability and aesthetics.
Industrial
designers
are
responsible
for
the
de-
sign
of
“...industrial designers can help to
develop a cost-effective product for
manufacturing with the best
possible design for usability and
aesthetics.”
of industrial design firms that the
school has worked with.
They
then have the choice of contacting
one of these firms or finding one
objects and systems that people use in
their daily work and play. The industrial
themselves. Internships last approximately 4 to 6 months.
designer is concerned with how people
Product Development Cycle
After the inventor has come up with a
product idea, the inventor will need to
identify the capabilities of the product
and then invest time researching the
market.
use products, how industry manufactures products, and product appearance
The market research component in-
and durability.
cludes:
The element of smart design has become increasingly important for both
individual inventors and companies producing goods. To a great degree, the
●
Identifying the target market
●
Identifying the competition
●
Conducting a SWOT analysis on
design of a product determines its suc-
the product (SWOT is a marketing
cess in the marketplace.
a c r o n ym
The recent
emphasis on the study of ergonomics
has furthered the need for smart design.
that
stands
for
Strengths, Weaknesses, Opportunities, and Threats).
Products not only have to be functional,
but also easy and comfortable to use.
●
The inventor will then need to analyze
Careers in Industrial Design
High school graduates aspiring to have
the scope of the project, which includes:
a career in design should be well prepared in Mathematics and English.
Most of those who choose to become a
design major have taken courses, or
have done extensive personal work, in
two- and three-dimensional visual media. A keen interest in the arts is also
helpful.
In the four years leading to a Bachelor
of Industrial Design (B.I.D) degree, stu-
Determining the product’s pricing
Illustration by: Michael Swift
●
development
Graduates of Industrial Design work for consulting firms specializing in industrial design.
These consulting firms are large corpora-
●
ally)
architectural, interior-design, and graphicpanies that have their own design departments, such as automobile manufacturers;
the computer, furniture, and consumer prod-
The location where the product
will be sold (locally vs. internation-
tions that include clients from all sectors design firms. Graduates also work for com-
The amount of money and time to
be budgeted for each stage of
●
The time-line for getting the idea
to production
After analyzing the market and
VOLUME 2, ISSUE 1
PAGE 12
the scope of the project, the concept is
ready to be put onto paper. An industrial
designer can prepare sketches, renderings, or Computer Aided Drawings
(CAD) so that the concept may be
shown to any potential investors. These
drawings can also be used to scout out
potential manufacturers.
Product ren-
derings enable manufacturers to provide
a price estimate for a prototype.
Fur-
thermore, if the product is at the mechanical development stage, full-fledged
production might be based on these
drawings.
Another responsibility of the industrial designer is to
study
the
ergo-
If an object requires any electronic com-
Filling a Gap in the Market
ponents, these will be designed at the
same time as the enclosure of the product.
Mechanical and electronics engi-
Tungsten Innovations Incorporated is an
neers will be able to create the ‘brains’ of
and engineering
the product.
For example, a cellular
company located
phone incorporates both industrial design
in downtown To-
industrial design
ronto.
and electronics. The industrial designer
Tungsten
will design the enclosure that accommo-
was created to fill a gap in the market —
dates, covers, and protects the wires and
chips within. Mechanical and electronics
many industrial design and engineering
companies already existed, but none
engineers will design the system that en-
combined the expertise of both fields un-
ables the phone to receive and make
der one roof. For instance, an inventor
calls, light up when in use, or include a
would need to travel to a design house for
feature that allows digital
photos to be taken. In order
renderings or prototypes, and if their prod-
to create the smartest design
inventor would have to find a separate
possible, industrial design-
engineering company to design the elec-
ers, mechanical and elec-
tronics.
tronics
“Industrial designers must
ensure that products are
comfortable, safe and
efficient for people to use.”
uct needed any electronics design, the
There is no guarantee that the
should
electronics of a product will fit into its
Ergonomics is the application of
work together to ensure that the housing
housing and vice-versa on the first trial.
scientific information to the design of
of the products will fit over the electronics
objects, systems, and environments for
and that the electronics will fit inside the
Such mismatches arise primarily from a
lack of communication between the indus-
human use. Ergonomics can be applied
housing.
trial design and engineering companies
nomics of a product.
to such activities as work, sports, health,
and safety.
engineers
as a result of the two companies working
Prototyping is another important step in
this cycle that an industrial designer is
separately on a single project.
A prototype is a full-scale,
At Tungsten, we believe that serving as a
working model of a new product or new
version of an existing product. It will most
liaison between the industrial design and
engineering companies is a misuse of the
guarantee that the product is fit for use
likely be shown to investors or the sample
inventor’s valuable time.
by target users. Ergonomics incorpo-
target market to seek input on the prod-
team merges these two fields into one
rates elements from many subjects in-
uct’s design and functionality.
company and works together with con-
Ergonomic design ensures that design
options take into account people’s capa-
involved in.
bilities and limitations.
This helps to
cluding psychology, physiology, anatomy and design.
Industrial designers
must ensure that products are comfortable, safe, and efficient for people to
use. A random example of an ergonomic object is the keyboard wrist support that consists of a long cushioned
strip that is strategically placed under
your wrists when typing. It is designed to
provide wrist support and prevent wrist
strain while typing. It is especially useful
when one works long hours on the computer. It has been designed with comfort
in mind, and – as a result – may increase typing speed and efficiency during long hours of typing.
The Tungsten
stant communication between each field;
If all responses go well, the next stage for
all projects result in the smartest design
the industrial designer is to proceed into
possible. This is very important from an
production. This step includes decisions
aesthetic,
regarding the number of units to be pro-
standpoint.
functionality,
and
business
duced, as well as the most appropriate
material that will be used in the making of
The individual inventor may have different
the product.
needs than a larger corporation, but they
both undergo the same stages of product
Deciding which manufacturer and tech-
development.
nique to use at this point will affect the
overall cost of each unit and, therefore,
Our clients include full and part-time in-
the profit margins. An industrial designer
ventors, larger corporations, and the film
may recommend injection molders, fabri-
industry.
cators and tool & die makers to further
assist in product development.
More information about Tungsten can be
found on the company’s web site at
www.tungsteninc.com
VOLUME 2, ISSUE 1
PAGE 13
Ta l k i n g w i t h a n I n v e n t o r
►Chips Klein
Innovative Progress (IP): Tell me
about the product you commercial-
IP: What would you say to someone
who is thinking of commercializing
IP: What advice could you give with
regards to: a) finding a manufacturer;
ized. How did you come up with the
an invention?
b) finding a distributor; c) preparing a
idea?
marketing plan?
Chips Klein (CK): I commercialized the
EyeMaker Mirror, a cosmetic mirror de-
CK: Go for it! Commercialization is an
incredibly exciting challenge.
The
CK: In looking for a manufacturer, I
would recommend searching the
signed specifically for the cosmetic and
Internet, since most manufacturers
eye care industry. The mirror is unique
have established web sites that pro-
because it lets you see your eyes in the
vide a description of the product lines
same way as a makeup artist would see
they manufacture. By exploring these
them – from three different angles: from
straight on, from the top, and from the
web sites and speaking with manufacturers, you will best be able to deter-
bottom.
mine whether there is a fit between
your needs and the manufacturer’s
The idea for the EyeMaker Mirror came
capabilities. Visiting numerous manu-
to me in my previous profession as a
facturers was a valuable experience
dancer. My career required the applica-
for me – I not only learned about
tion of heavy theatrical makeup just Caption describing picture or graphic.
about every day. Applying the makeup
manufacturing, but was often referred
was quite a battle, even for makeup
artists with years of experience.
Chips Klein and her EyeMaker Mirror
personally to people who were able to
assist me.
knowledge and experience gained from
the process of bringing your product to
Before finding a distributor, you should
I left the theatre and went into the cosmetic industry. As a makeup artist, I
the market is invaluable. The lessons
learned can always be applied else-
ask yourself how the product will be distributed. There are both pros and cons
noticed that it was easier to apply
where.
involved in working with distributors,
makeup to somebody else’s face be-
wholesalers, manufacturing agents, and
cause I could see
The
commercialization
representatives in selling the product.
their eyes from “...there are no shortcuts if
you want to succeed in
different angles.
The idea for a commercializing a product.”
process is a learning curve.
Choosing a distribution channel de-
As long as you approach it
pends on the nature of your product and
in an organized manner via
your target market.
three-dimensional
a well thought-out step-by-
mirror was born.
With the EyeMaker
step process, you will learn from the
When working with a distributor, find
Mirror, you become your own profes-
project. Keep in mind that there are no
someone who deals with products in
sional makeup artist.
shortcuts if you want to succeed in com-
your sector. You will also need to con-
mercializing a product.
sider the geographic reach of your dis-
There are three components that an
tributor. For example, we worked with a
distributor based in Ontario for this par-
inventor must consider when bringing
ticular beauty market, but dealt with a
CK: The EyeMaker Mirror is the only
product that I have commercialized, but
their product to market: financing; pro-
national distributor to sell our product in
duction and manufacturing; and market-
Vancouver.
I share my expertise in commercializa-
ing and promotion.
tion via assisting my company’s clients
must be granted sufficient attention as
In terms of marketing, statistics tell us
with business product development.
they are all equally important.
that 95% of all new products fail at the
IP: Have you commercialized any
other products?
Each component
marketing stage. This rate of failure means that you must devote a
VOLUME 2, ISSUE 1
PAGE 14
tremendous amount of effort, finances,
budget for your product, you need to
you did receive feedback, how did
and time on the marketing of your prod-
double it. However much success you
you incorporate it into your product's
uct.
anticipate, you need to halve it.
evolution?
Marketing plans must be prepared well
I have learned a lot from my mistakes.
in advance. Furthermore, you must be
If I were to pursue the process over
CK: There were three models of the
EyeMaker Mirror, and each model was
aware that you will need a discretionary
again, I would concentrate on the pro-
better than its predecessor.
The con-
budget for marketing before selling the
cept of the mirror was good, but the
product. Good marketing is expensive
actual product needed to be re-
but there are definitely ways to get the
biggest bang for your buck – if you plan
modeled – with changes in size, then
colour, and finally, incorporating feed-
a well-thought out approach ahead of
back from our customers.
time. You also need to think about the
made a compact version of the mirror
best method for distributing your prod-
as a result of customer feedback.
We also
uct – should you sell it through outlets,
on the Internet, in stores, door-to-door,
We actively sought consumer feed-
or through direct mail?
back by including a coupon with the
product. We offered a five-dollar re-
When it comes to financing, most peo-
bate to anyone who returned the cou-
ple tend to analyze vertical financing
pon, which allowed us to track loca-
needs, even though they should be
tions where the product was selling
considering horizontal financing. Vertical financing starts with the assumption
well.
that it costs you five dollars to make a
We also provided incentives to sales-
Illustration by: Dennis Karpov
people to provide feedback regarding
product that can be sold for ten dollars
in the market, which means that you
motional and marketing side.
receive a five dollar profit.
I would
EyeMaker Mirror sales.
Incentives in-
Horizontal
also make certain that I raised broad
cluded sending pairs of earrings as ap-
financing takes into account the date
awareness about my product, rather
preciation gifts.
from which your costs start, and any and
than letting only a small circle of people
all associated costs that may be in-
know about it.
IP: What motivated you to act on
curred until you manufacture, sell, and
commercializing your idea as op-
receive payment for
the product.
This
may result in your
“If I were to pursue the
[commercialization] process
over again, I would concentrate
on the promotional and
marketing side.”
I would also focus on
posed to remaining an "armchair in-
the
ventor"?
benefits
rather
than the features of
the product. One of
the most frequent mis-
CK: I knew that I wanted to go into business on my own and the idea for the
takes is not sufficiently
EyeMaker Mirror had been percolating
e m p h a s i zi n g
the
in my mind for eight or nine years. The
look at your cost analysis from a hori-
benefits of your products; the benefits
timing was right for me to give it a shot. I
zontal perspective for a more accurate
are what attract customers.
didn’t want to have “I should’ve,
profit margin being
greatly
reduced.
Therefore, it is always a good idea to
would’ve” regrets at the back of my
overview.
One tip that worked for me when I was
mind, so I decided to go for it and com-
IP: What did you learn from the proc-
introducing a brand new product was to
mercialize the mirror.
ess of bringing your product to the
undersupply the market to create a de-
market?
mand for the product.
Effectively, you
Although commercializing the product
are creating the want for the product in
was costly at the beginning, I eventually
CK: The process taught me: however
much time you allocate for the commer-
the market.
made some money and had some
success. The learning experience
cialization of your product, you need to
IP: What kind of feedback did you
receive from customers, if any? If
that I gained while I was commer-
double it.
However much money you
cializing the product led to where I
VOLUME 2, ISSUE 1
PAGE 15
am today. I am the President of a com-
and over again. I would recommend that
articulating it. If I have a different per-
pany that deals with international mar-
once you have gone through the com-
spective and people agree with me, they
keting and commercialization, and am
the Co-Director of the Women Inventors
mercialization process, you step back
and evaluate what you have learned
will call me a visionary; if I have a different perspective and people do not agree
Project. I found the learning experience
from the process.
with me, they will call me a nut. The in-
more valuable than any university de-
ventor is sometimes stereotyped as the
gree. I did not realize how much knowl-
IP: What do creativity and innovation
mad scientist, but inventors are regular
edge and experience I could gain from
mean to you?
people who keep asking “what if…”? If
following the commercialization process.
You can learn a lot from your mistakes –
as long as you don’t make them over
this creativity is not articulated, then
CK: To me, innovation is looking at
things from a different point of view and
valuable, innovative ideas are hidden
and possibly lost forever.
Inventing the Future Conference — August 2003
Top row (left to right): The 2003 Inventing the Future Conference was held at the Centre for Innovation Law and Policy; Geoffrey Sheerin,
Team Leader, Canadian Arrow, X - Prize Private Race to Space Competitor (“Making Space for You”).
Bottom row (left to right): The Canadian Arrow Team and Anne Swift at the 2003 Inventing the Future Conference; Gabriella Etcheverry,
Young Inventors International (YII) Member, exhibiting her invention at the 2003 Conference.
Speakers featured at the 2003 Conference included: Richard Owens, 2003 Conference Host, Executive Director, Centre for Innovation Law
and Policy; Garth Phillips, Branding and Marketing Expert and Director of Brandcom (“Finding the Salad”); Tom Boyd, Business Development
Advisor, Canadian Intellectual Property Office; Donna Messer, Founder and President, ConnectUs Communications Canada (“The Power of
Positive Thinking”); Lance Matthews, Manning Innovation Winner, Inventor and President, CanadaLeg (“Response to Disaster: The Development of the iWALKFree”); Bob Huehn, Founder, Pro Inventor Associates (“How to Evaluate and Commercialize Your Innovations”); George Rolston, Barrister and Solicitor, Registered Patent and Trademark Agent; Andrew Deonarine, Magna for Canada As Prime Minister Award
Finalist (“An Overview of an Extensible Speech Synthesis System”).
VOLUME 2, ISSUE 1
PAGE 16
S e v e n Wa ys t o R a i s e C a p i ta l f o r yo u r Ve n t u r e
►Evan Carmichael
Raising capital is among the most signifi-
consulting, or services.
cant concerns for entrepreneurs in Canada. According to data from the Cana-
country.
Look to both the provincial
and federal levels for government fundII. Love money: The sources of love
money are friends, family, and neighbours
ing.
dian Federation of Independent Business
(CFIB), almost 40% of Canadian busi-
who might be willing to invest a lot of
ness owners in 2002 were worried about
money in your business. They are looking
being able to obtain money for their busi-
for a return on their investment and want
IV. Banks: Banks don’t like lending to
small businesses. You can increase
your chances of obtaining a loan by
ness, compared to just 15% only 15
to help you out because they like you. Lis-
establishing a rapport with your ac-
years earlier.
ten to their advice, think about it, and con-
count
manager, using more of the
bank’s
business
There are five main areas that an inves-
sider whether or not you want to make
them part of your management team.
tor may finance. These are:
services,
having
enough cash flow to pay the monthly
interest on the loan, and having
enough equity built into your busi-
●
Protect intellectual assets - pat-
ness. According to the CFIB, TD
ents, copyrights, and trademarks
Bank is the friendliest of the small
business banks in Canada out of
●
Production
-
land,
equipment,
the big five.
buildings, and labour
●
Marketing - proof of concept,1 and
V. Angels (i.e. Angel Investors):
Angels are wealthy individuals who
advertisements
invest
between
$50,000
and
$250,000 into businesses. There
●
Expansion - export, acquisition
●
Research and development-
of Canadian start-up businesses
idea, process, and technology
with strong profit potential. They are
are more than 200,000 angels in
Canada, and they invest into 60%
usually successful entrepreneurs or
Know what you need money for before
professionals who earn between
asking for it.
$100,000 and $250,000 in annual
income.
There are seven main ways you can
You can find angels through infor-
raise capital for your venture:
Illustration by: Dennis Karpov
mal networks by speaking with accountants, lawyers, and business
I. Self-financing: Use your personal
savings and/or job income. Establish a
relationship with one customer at a time,
III. Government: Investment funds in
Canada can be between $500 and $500
associates.
create a solid foundation, and invest the
million. Before investing in your venture,
profits into expansion. This is the slowest
the government wants to ensure that it’s
VI. Venture Capitalists2 (VC): On average, VCs invest $500,000 per deal.
way to build a business and is best for
mandate matches your organization’s ob-
They are looking for a 30-40% return
businesses that do not require a lot of
jectives. The government will be looking
on their money and a three- to five-
capital investments.
for: a solid business plan, matching indus-
year exit strategy. Management capa-
try funds, and overall benefits to the
bility is their primary consideration.
Such capital-light
enterprises may include software,
1
2.
A proof of concept is a demonstration that the business idea or technology is feasible.
Venture Capitalist (VC): A venture capitalist is a person who invests in a business venture, providing capital for start-up or expansion. Venture capitalists are
looking for a higher rate of return than would be given by more traditional investments. <http://sbinfocanada.about.com/cs/financing/g/ventcap.htm>.
VOLUME 2, ISSUE 1
They also want to see that the president
PAGE 17
The management team is incom-
Good luck and keep building the com-
is a good salesperson, that the technol-
●
plete and has no start-up experi-
pany of your dreams!
ogy can lead to more than one product,
and that customers will be repeat for at
ence
The sales projections are exag-
Evan Carmichael has operated his own
erated
business and is an owner in Redasoft, a
●
least three years. Most VC connections
are made through referrals or by contacting the VCs directly.
VII. Others: Other potential sources of
money for your business are: factoring3
biotechnology software company . Evan
Some other ways to raise capital in-
has worked with Northern Crown Capital
clude:
●
to
●
companies, leasing companies, strate-
raise
between
$500,000
and
Obtaining a mortgage or loan
$12,000,000 for entrepreneurs and their
Use of business and personal
growing businesses. In addition, Evan
credit cards
has delivered workshops and seminars
Delay of payment on inventory
at major international conferences.
gic partners, and incubators.4
●
Investors often decide not to finance
●
Asking customers to pay upfront
Evan is dedicated to HELPING you build
●
before product delivery
Selling your assets
the company of your dreams! He can be
contacted at (416) 633-9887 or
from your suppliers
specific companies because:
● The entrepreneur has poor
●
[email protected].
You
specific market research and a
limited understanding of the
According to the CFIB, three out of every
visit his website at:
competition
ten young, high-performing companies in
www.evancarmichael.com
The technology has not been
Canada are under-financed. Make sure that
for additional articles and information.
validated
yours is not one of them.
can
3
Factoring: is the purchase and sale of accounts receivable (invoices) at a discount at or near the time of invoice creation. It is a proven solution that alleviates the
c cash flow problem many small and medium sized businesses face. <http://receivables.factoring-company.net/invoice-factoring.htm>.
4
Incubator: is an enterprise that is set up to provide office space, equipment, and sometimes mentoring assistance and capital to new businesses that are just
getting started.
Success seems to be largely
a matter of hanging on
after others have let go.
-William Feather
How many people do something
they really believe in?
I just wish people would realize
that anything’s possible if you try.
Dreams are made if people try.
Anything I’ve ever done that
ultimately was worthwhile…
initially scared me to death.
-Betty Bender
-Terry Fox
If you hear a voice within you
saying, “You are not a painter,”
then by all means paint…
and that voice will be silenced.
-Vincent Van Gogh
Inspirational
Quotes
What would you attempt to do
if you knew you could not fail?
You have to pay close attention
to what you love
and never listen to anyone
who tells you to be practical
too early in the game.
–Barbara Sher
Genius is 1% inspiration and
99% perspiration.
-Robert Shuller
Falling’s part of the game.
It’s like my dad always says:
“No matter how good you are,
the ice is still slippery.”
–Michelle Kwan
-Thomas Edison
YOUNG INVENTORS INTERNATIONAL
Young Inventors International (YII) is a not-forprofit organization that connects inventors and
innovators under the age of 35 to a global network of resources and support. YII’s services
include an annual conference, monthly newslet-
Anne Swift, Founder & President
(905) 833-4842
[email protected]
ters, various educational and social events, and
an online discussion board, workshops, and a
mentor’s network.
For more information about the organization
and to sign up for membership, please visit
We’re on the web!!
www.younginventorsinternational.com
our website.
Top row (left to right): YII Inventing the Future Conference 2002 hosted in Toronto by CGI; participants of the Inventing the Future Conference;
Dr. Elizabeth McGregor, Fellow of the Centre for Public Leadership at the Harvard University Kennedy School of Government, and Maria Victoria
Martins, Master of International Education and Policy, Harvard Graduate School of Education, and Project coordinator for Fundacion Compania
Social Equidad in Argentina. Dr. McGregor and Ms. Martins spoke at the Conference about ethics and bio-medical issues.
Bottom row: (left to right): Murna Dalton, the host of the 2002 Conference, Vice President, Consulting Services, Government and Utilities, CGI;
YII Inventing the Future Conference; Richard Fast of Mastermind Toys, Inventor of the Mindtrap Games and President of Mad Hatter Toy and
Game Factory Inc., who spoke at the Conference about “Inventions and the Importance of Setbacks.”
Speakers at the 2002 Conference included: Bob Marrs, Director of Entrepreneurship and Field Services, Ministry of Enterprise, Opportunity, and
Innovation; Howard Markowitz, B.Com, LLB., DuMarkowitz LLP Business Lawyers (“The Road to Innovation”); Chips Klein, Co-Director of Women
Inventors Project and President of Chipco Canada Inc. (“From Dreams to Reality”); George Rolston, Barrister and Solicitor, Registered Patent and
Trademark Agent.
Disclaimer: All information and statements herein provided by Young Inventors International regarding these articles are obtained from
sources deemed reliable and assumed correct. No warranty or representation is made as to the accuracy thereof.