You can be on Entrepreneur’s cover!

5 Ways Consumer Product Entrepreneurs Thrive While Others Fumble Entrepreneurs create unique, patentable products that solve problems the big companies can't

By Tim Linnet

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock.com

\Selling products into retail industry is tough. Competing head to head with the big brands is almost impossible. They have established partnerships in distribution and access to seemingly unlimited marketing budgets. In fact, ten companies control the majority of consumer brands on the shelf at your local retailer. Fortunately, for consumer product entrepreneurs, these large companies are more likely to buy an entrepreneur's innovative product than create one on their own.

1. Entrepreneurs see a problem that current products don't solve.

The large product companies are more likely to create new brands with the same ingredients that have been on the shelf for decades. But product entrepreneurs are looking for ways to solve a problem, not repackage existing solutions. This is one of the requirements for getting in front of retail buyers for new consumer product companies.

Related: 5 Strategies for Generating Consumer Demand

2. Entrepreneurs create unique, patentable products.

Product entrepreneurs create new and unique products. Their goal is to patent them which prevents the large companies from copying their idea. This allows the entrepreneur to grow sales unimpeded by direct competition and eventually sell their patents to the big brands.

Related: Jessica Alba's Honest Company Is Reportedly a $1.7 Billion

3. Entrepreneurs are usually first on new macro economic trends.

Historically, large consumer product companies take longer to respond to trends. The natural and organic market growth has been substantial over the last ten years. However, big brands were late to the party. This is why the natural and organic market was initially was filled with startups which now have grown into larger companies serving the masses. Startups will always be the ones to pioneer new product trends as they are willing to take more risks to achieve their dreams.

Related: 5 trends every American small-business owner needs to watch in 2016

4. Entrepreneurs want the product for themselves.

Jessica Alba founded Honest because she wanted to buy products that didn't pose toxic risks for her kids. Large consumer product companies are less likely to create products out of necessity. Their corporate structures intrinsically impede this kind of innovation.

So for those of you that have a product ideas that are unique, patentable and solves problems that exists in the market - be encouraged. There will always be a place in retail for you to test and grow your ideas. And who knows, maybe one of the big consumer brand companies will buy your product next.

Tim Linnet

Creator of Daily-Decaffeinate, Founder of Linnet Biopharmaceuticals Inc.

Tim Linnet Co-Founded Linnet Biopharmaceuticals Inc., a pharmaceutical company that aims to improve lives by creating new pharmaceuticals and consumer products. Linnet's first first consumer product, Daily-Decaffeinate helps coffee drinkers get a better sleep. Linnet is passionate about consumer products, new pharmaceuticals, entrepreneur health and ending slavery worldwide.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Grab Microsoft Project Professional 2021 for $20 During This Flash Sale

This small investment is well worth the time it will save your team in organizing and monitoring project work.

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.

Business News

Microsoft's New AI Can Make Photographs Sing and Talk — and It Already Has the Mona Lisa Lip-Syncing

The VASA-1 AI model was not trained on the Mona Lisa but could animate it anyway.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Data & Recovery

This File Backup Tool Subscription Is $25 for Life for One Week Only

AOEMI Backupper Professional is designed to protect, store, and transfer user's files for them.

Business News

Some Costco Stores Are Now Selling a Frozen Item That Looks Just Like a Trader Joe's Fan Favorite

The Frozen Kimbap is a Trader Joe's cult favorite, and now a version can be found at Costco, too.