How to sell a product idea to a big company

How to Sell a Product Idea to a Big Company

Introduction

It is one thing to have a mind-blowing and innovative product idea, yet, another thing to effectively convey this idea, while maintaining its originality and hitting the point.

Big companies are one of the major routes or channels to expand your business through. Partnering with them can be a game changer for your business. Learning to convince the company into buying your idea is entirely possible, with the right approach and strategies.

In this article, we will break down the steps to get your idea noticed and turned into a reality. From understanding what makes the company tick to building a relationship with the right people, this article will have you covered. Let’s dive in and make your product idea a success.

Understand The Company’s Innovation DNA

Before coming up with a product idea, research on the company you would like to sell it to, in order to ensure compliance. Compliance, in the sense that the product idea directly addresses their innovation hotspots and addresses their pressing concerns.

The importance of the research stage cannot be overemphasized, as it opens you up to many options. When you understand their needs, you can effectively narrow down your options to the most pressing, and develop your product idea from there.

A customer, whether an individual or a company, will purchase a product or product idea that will be beneficial to them in the long run. Always remember that.

Develop customized approaches that will draw their attention to the idea. By doing this, you will not have to do too much work in getting them to notice you.

Create a Compelling Value Offer

A value proposition or pitch is a powerful tool in convincing potential customers of your product’s worth. In this case, your product idea. When you’re crafting a value proposition, you should use design thinking to create a pitch that is centered around your potential customers.

The company must be convinced that not only will the product resonate with them, but it will also be helpful to their potential customers. With this in mind, your pitch should highlight the benefits of the product to customers.

It should not just stop there. Your pitch should highlight the product’s potential for exponential growth and improvement, where necessary. Let the company understand the flexibility of the product as well as your willingness to tweak it, according to their needs.

Prototype Politics: How to Navigate the Company’s Evaluation Process

For a company to believe that your product idea is capable of coming to life, it is necessary that you create a minimum viable pitch to test the water with.

What does this mean?

A prototype or test product must have been created, before approaching the company. This test product must have undergone your personal scrutiny, and met all the requirements listed in your pitch.

Why does this work?

It is important to have these test products for a multitude of reasons. The first is to match your words. As you explain, you demonstrate.

The second reason is that you will be perceived by the company as serious and ready. When they see that tests have been run on your prototype, it makes them welcome the idea of working with you, as you will be perceived as credible and trustworthy.

The Trust Factor: Establishing Credibility and Rapport

One of the keys to maintaining a healthy business relationship, is by constantly proving your trustworthiness. This can be done in different ways, and on different occasions.

One of the ways, is by showcasing your leadership skills, which will further prove your expertise. Be bold, when speaking about your product idea, and demonstrating it.

Storytelling can also be employed, when in need of further convincing. Bring up scenes and events where the product will come in clutch, and be the best thing anyone would use at the time. Also, you can build relationships with the company, by expressing your shared interests and passions. Before walking into the company, research must have been made, enough to convince yourself that you like what you see, and you won’t regret partnering with them. This truth will help you in your dealings.

The Pitch Perfect: Delivering a Memorable and Persuasive Presentation

When in the meeting with the company, boldness is required. Employ the use of narrative techniques which will help you convey the product’s potential, leaving no stone unturned.

You should have practiced the meeting, and answered potential questions, so that you are not caught lacking at any point in time.

You understand what the product will be worth, but you must remember that the company does not. It is your duty to communicate exactly what you know, and convince them, just as you were convinced by your idea. Highlight how beneficial the product will be, to them.

Remember to be bold and assertive. Your confidence will further push the narrative that you are sure of what you are saying it them.

The IP Imperative: Addressing Intellectual Property and Legal Considerations

So, when sharing your product idea to a big company, you need to have your Intellectual Property (IP) in place, first. An IP will keep your idea safe from theft, and it gives you the freedom to innovate without worrying about someone else profiting off your hard work, without a payment agreement. Below are a few ways to achieve that.

– Provisional patents: Get a provisional patent to stake your claim and keep your idea safe while you’re still developing it.

– Non-disclosure agreements (NDAs): Use NDAs to keep your idea under wraps when you’re sharing it with the company. Get them to sign it, in the case of a legal requirement.

– Ownership and equity: Make sure you’re clear on who owns the IP and how any profits will be shared.

– Legal structure: Set up a legal entity (like an LLC or corporation) to own and manage your IP.

– Due diligence: Do your research on the company’s IP policies and practices before partnering with them, as they may different from what you know.

By covering these bases, you can ensure your product idea is safe and secure, and that you’re ready to negotiate a fair deal with the big company. Just remember, IP protection is like insurance for your idea, and it is always better to be safe than sorry.

The Deal Maker: Negotiating a Fair and Lucrative Deal

Understand that the company’s business model may have some constraints, and you should be ready to either decide to work with it, if it’s convenient for you, or simply walk away, if it is not.

Discuss terms that are mutually beneficial, as you will want your product idea to give you the financial freedom you require, as well as reaching a vast audience.

Do not be afraid to state what you want, as you have the upper hand. The company understands that it is your choice to stay or leave, and they have no constraints on you. Leverage on this advantage, to make sure that your benefits are worth the value of your idea.

Conclusion

It is important to understand that while you may need a big company to push your idea and bring it to life, you are the sole owner of this idea. Let your confidence radiate this knowledge, in the place of striking a deal.

By practicing these discussed strategies, you have a good chance of selling your product idea to the right company, and getting your worthy pay.