01 Dec 5 Ways Your Innovation Could Flop

The inventor tinkers. The dreamer cogitates. The “light bulb” moments are exciting. I thought up something new! Both small and large innovations can be exciting whether it’s the 3D printer or a cereal bowl with two levels, one for milk and the other for cereal to stay crisp. But did you invent something that will matter? Can you make it, get it to market and satisfy demand? Are you the right person to make it happen? Can you properly protect the idea? There are so many challenges getting from the light bulb to the bank. Here are five things to watch out for that could quash your effort to bring on something new:

1. Your innovation does not satisfy an unmet need. Something new and unique is nice, but does anyone care? 3D television was set to take the world by storm but now has virtually disappeared because there is simply no consumer demand. Older folks may remember quadrophonic stereo, the Sony Betamax, the Apple Newton, WebTV, the DeLorean car, new Coke and others.

2. Your management team is not up to the task. The greatest ideas, not well implemented, are as good as worthless. If you do not have key team members experienced in your industry and in rolling out new products in a fast-growth mode, they could make many wrong decisions – like what applications your product will satisfy first, where and how to manufacture and distribute, how to price, even packaging can be the difference between success and failure.

3. You fail to properly protect your intellectual property. If your new idea can be patented or has a key name to be trademarked, or is a work of art to be copyrighted, get that protection. Or make sure you work very hard to keep your trade secret. So many great ideas are simply copied (or stolen!), and the first mover isn’t always the most successful. Look at Google vs. Netscape, Facebook vs. MySpace, etc. Also make sure you didn’t invent something that someone else already did!

4. You are undercapitalized. If you anticipate rapid and growing demand for your new product or service, and capital is required to satisfy that demand, do not get caught short. If people cannot get your new thing, then you can’t make money! And the cachet of “this is hard to get” only works for a short time (read: iPhone introductions).

5. You give it away without even realizing. A potential partner for the innovation comes along and sticks a “standard” 75 page joint venture agreement in front of you. You are excited that someone else is also excited, and you go forward without proper legal review and attention. Next thing you know they have the right to take over your innovation. Quell your enthusiasm with the right legal protection!