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Question added to topic Starting a BusinessOctober 1, 2007

Is it better to go it alone on an invention or give your idea to a company to create and market?

Approximately what is the difference in revenue generation? Is it worth it to let someone else do the work?
Great question and the answer is tough given how little detail I have to work with.

It really depends. That said, most great inventions (and by great I mean they sold a lot) are handled by an existing company that has a distribution network already in place and can take your idea and make it great.  Take for example the two ball putter from Calloway.  Imagine trying to break into the golf market place and sell millions of them if you were by yourself.

Here's another lesson to take from that example: The inventor took a one-time payment up front rather than sharing in the overall revenue.  Big mistake . . .

That said, take a look at the Leatherman -- a really great tool kit in one item that has created a massive empire. Both ways work.

A rule of thumb is that if it will be easy and relatively cheap to get it to market and you believe you can sell millions of them for many years to come, then invest up front and go it alone. If not, (and in most cases it's not) work with a bigger company.

All the Best
Brad Sugars

Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.

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