When you have a great new idea, there is a point where it is necessary to consider the pros and cons of licensing versus starting a small business of manufacturer, market, and send a new product. Both options are viable, but have different degrees of risk and benefit.
Licensing is fast, requires few resources, and relatively risk-free. The manufacturer who is the licensee has taken all the risk for the duration of your license agreement, which in turn will keep most of the profits, while giving the inventor a percentage of sales anywhere from 3% to 15 %. There is often a good faith payment made upon signing a contract, an advance payment of fees recommended, which should motivate a manufacturer to produce the product and to recoup their investment. The manufacturer knows its market, has existing relationships for distribution, and money to launch a new product. Six months is not a reasonable time frame to see your place.
Creation of small enterprises is slow, requires a great amount of resources, and risky. The increased risk is directly proportional to the possibility of higher returns. You assume all risk from the product development operation, finance, procurement, production, execution or issuance, marketing, advertising and sales. It can take years for a new product to market and as a small company that is competing with established players who have the advantage of playing at home. These large companies can negotiate more favorable agreements with suppliers, can afford the commercials, luxury packaging and design. Even if you can produce your product, may not be able to compete with big business out there. It's a very uneven playing field.
Someone with a new idea has to wonder what their business objectives, is to make money quickly and sell your idea or would be a business owner, invest time and energy in building a society, not just the invention of new products. Not all inventors is cut to run a business, to try and all aspects of property that have nothing to do with the invention process. Ask yourself if your passion is research and development of a new idea or marketing of this new concept.
