DonDebelak.com - Track A: Outsource Entrepreneur

An outsource entrepreneur uses outsourcing to quickly bring his or her product to market with low risk and low investment. There are essentially three aspects to bringing a product to market: research and development; manufacturing; and marketing. As the inventor, you perform the task of research and development (inventing and developing the idea) and outsource the manufacturing and marketing to investing partners. The investing partners will provide further development and pay for many of the start up costs. In return they will receive more profits than contracted work and will have some control of the idea. This is often the fastest way to bring a product to market, is low risk and allows you to move onto new ideas quickly since the other partners will continue to manufacture and market your idea without excessive involvement on your part. This is not for everyone and will require you to have strong deal-making skills, but the low-risk and low-investment aspect makes this appealing for most inventors, who are often strapped for cash. For more information on being an outsource entrepreneur, see The Risk-free Entrepreneur: The Idea Person's Guide to Building a Business With Other People's Money and Bringing Your Product to Market: Fast-Track Approaches to Cashing in on Your Great Idea , 2nd Edition, both by Don Debelak.

Step 11A: Find Potential Partners
Not everyone will be a good candidate for outsourcing. You need to find manufacturers who can add your product without too much investment in new machinery and who are running below capacity. Marketing partners must carry products similar to yours and your product must represent a significant increase in sales for the firm, at least 20%.

Services: We can provide you with a list of potential partners for your product. This service costs $175. Please contact info@dondebelak.com for more information.

Step 12A: Set Up a Proposed Deal Structure
Before you start approaching potential partners, you should know what kind of deal you are hoping to set up. Have an idea about what kind of investments each partner will make, how you will divide profits and how you will handle the future of your idea. Remember this isn’t the final deal, but just a starting point for you and your partners. No one will sign on a deal that isn’t fair for them, so try to make it as fair as possible for everyone involved. Don’t devalue yourself in this process though, creating and developing the idea is very valuable and the basis for the partnership.

Services: We can advise you on the major points of a successful deal. This service costs $100. Contact info@dondebelak.com for more information.

Step 13A: Approach Manufacturers
Approaching your partners can be difficult. Manufacturers don’t want to sign a deal unless there is a marketing firm guaranteeing sales and marketers don’t want to sign a deal unless a manufacturer can promise to produce the projected volumes at a reasonable quality. The best way to deal with this is by first approaching a manufacturer and ask them to commit to the project if a marketing firm will sign on to the deal. If the manufacturer agrees, then you have a solid enough commitment for a marketing firm to be willing to sign on.

Services: We can create a list of important questions and points to make with your potential manufacturing partners for $125. This can help assure both you and the manufacturer that the partnership is a good match for both of you. Contact info@dondebelak.com for more information.

Step 14A: Approach Marketers
Once you have a preliminary agreement with your manufacturer, you can start approaching marketers. Make sure you have chosen your marketers carefully and approach the ones you think will be most likely to join the partnership. Marketers become wary of products that have been “shopped around” and will avoid your product if they think too many others have said no to you already. So do your homework and be confident that you approach those companies for whom your product would be a good fit.

Services: We can create a list of important questions and points to make with your potential marketing partners for $125. This can help assure both you and the marketing firm that the partnership is a good match for both of you. Contact info@dondebelak.com for more information.

Step 15A: Close the Deal
Once you find two partners who are interested you need to all sit down together and hammer out all the details and close the deal. You need to be protective of your share here. If you can prove that you can offer some kind of ongoing service for the project it will be easier to get your fair share. You may also want to hire an attorney to help you protect your rights.