The simple answer is three buckets of cash. This aspect is a serious and straightforward summary since everything is becoming increasingly expensive, and many new goods and enterprises fail due to underfunding or just running out of cash. You'll need a brilliant, viable, original idea with high potential demand, good to outstanding margins, intellectual property, etc. However, we all have witnessed numerous concepts that fit these crucial characteristics but have never made it to first base during the last 30 years. So, let's get started!
Bucket of Money #1 – Development
● Your concept must be designed both technically and artistically (Industrial Design)
● Engineers are required to engineer your design (Mechanical, Electronic, Software etc.)
● Prototyping is necessary to validate and test your Engineered Design (Alpha)
● After refining and evolving your Alpha Prototype, you can create and try a new one. You may require more prototyping rounds.
● To get production bids and choose a manufacturer, you'll need formal manufacturing paperwork, a BOM, and 2D and 3D files.
Bucket of Money #2 – Manufacturing, Packaging, Inventory
● Factory selection, auditing, and competitive quotes
● Custom Tooling & Molds, Factory Set-Up and Fabrication Fixtures = capital investment
● Engineering Liaison and Quality Management Oversight – Client-side
● Production Sample Making and Testing
● Pilot Production – hundreds to thousands of units
● Volume Production – many thousands of units
● Packaging (shipping and retail)
● Instruction Manual
● Certifications (UL, Safety, FCC, FDA, Etc.)
● Shipping and Trucking
● Customs and Duties
Bucket of Money #3 – Marketing and Selling your Product
● Marketing Plan & Marketing Budget – 2 years
● E-Commerce Website
● Public Relations
● Social Media
● Advertising and Promotion
● Videos, Photography
● Fulfillment
● and many, many others
Of course, not all product innovations require all of these features. Many organizations and entrepreneurs bring knowledge and talents to the table, if not all, of these tasks.
However, organizations must address the majority of these categories.
There are techniques to control and lower the total amount of money in these many buckets.
Prepare for what is to come and plan to make sound business decisions. Also, make sure you have adequate money!
Prepare a blueprint, strategize and then move ahead. Still have questions about product design and engineering services;
our experts will be ready to help you. Contact us now!
About the author:
Innovative Design Products (IDP) is a product design and development company located in Irvine, CA. We have been in the product development and manufacturing liaison business for over 30 years and have an A+ BBB rating.
