"Want to sell my business idea to someone who can manufacture"
I have had a business idea for a long time, decided it is too much to manufacture and market myself. I am looking for someone in Chicago, IL area to discuss selling my idea to. Is it feasible to sell my idea for a fee and collect royalties? Thank you in advance for your responses.
#2. "RE: Want to sell my business idea to someone who can manufacture" In response to Reply # 0
I'm not sure what your business idea is. I'd risk being wrong by guessing that this is a food product that you have in mind.
If it is a food product, you will find that unless you have an out of this world product that nobody else is making and the manufacturer sees an enormous potential in it, he/or she will not find what you describe here as desireable.
Surely you have heard of incidents where people have great ideas, they sell the idea for a fee and then collect royalties on it... One example of this was a fellow who had an idea to take, (I believe) Cadbury candy bars and make Ice Cream bars out of it. He took the idea to Cadbury and asked for the exclusive right to make these ice cream bars. Costing Cadbury nothing, they agreed. He then took this exclusive right to an ice cream manufacturer and enticed them to make the products paying him a royalty on every bar sold.
Regardless of whether it is food or not, again the same caveat will apply the manufacturer will have to see the value you see in it to buy it from you and run with it.
So, yes it is feasible, but be aware that it might not be as wonderful as you think.
#3. "RE: Want to sell my business idea to someone who can manufacture" In response to Reply # 0
Carol, yes, you can sell your idea to another company to manufacture and develop and sell and you get the royalties. This is licensing. It's a great way to take a product that you know there is a market for, but that you yourself cannot develop and sell (monetary limitiations for example) and still get compensated for it.
Normally if the item is patentable, it is best that you obtain the patent yourself (very time consuming and costly). But you stand a much greater chance of licesning your product if it is already patented.
When you are ready to approach a manufacturer be sure you have a non disclosure form that they sign.
Do realize, that the royalties are quite small (average 5%). But if the product sells well, that can still be quite profitable.