Q: How can I make a prototype if I don’t have any money?
A: If your idea is a really good idea, it’s not that difficult to get the money. Let me explain.
Besides asking family and friends for money, another approach is to go to your prototyper or manufacturer – not for money, but for a stake in your business in exchange for their help up front.
First find out how much it would cost to make your prototype. Then once you know that number, offer the prototyper double or triple their normal fee on your initial sales if it is a success. This will at least open up a conversation to find out if they are willing to take a risk with you and partner to make your invention.
If they are willing, you should each sign a simple agreement outlining the details.
THEN once you have a finished prototype or pre-production model and are ready to manufacture – the same rule applies with manufacturers. You will make a better impression if you already have an order lined up that you can show to the manufacturer. Many manufacturers are willing to take a risk with you if you can prove the worth of your idea. Some will waive the tooling costs in exchange for higher profit margins per unit.
Finally, be prepared when approaching businesses about partnership scenarios. First impressions are EXTREMELY important.
Think, Create, Prosper,