So here’s a question I got in e-mail the other day:
I am an engineer and I’ve designed a machine and got it patented. I am struggling between selling my patent or starting my own business. I am trying to balance out all the pros and cons of a product-based business. I had really great offers for my patent, but I think more money can be made if I manufacture the machine and sell it myself. What do you think? What are the pros and cons of a product-based business?
And here’s my answer:
Pros |
Cons |
| Chance to make real money | Chance of losing money |
| Control your own destiny. | Lots of hard work |
| Turn your idea into a business. | Serious uncertainty |
| Prove the value of your idea. | Get your bluff called |
By the way, have you actually tried to sell rights to that patent? Make an informed decision. Something like a patent is worth what a buyer will pay for it. Most patents, the vast majority of patents, have no buyers.
And then there’s the problem of the buyer who offers a royalty for a license, then does nothing with the patent. You make no money.
And, on the other hand, there’s also the chance that you try to build a business and fail. Lose your shirt. Lose your house.
Which do you prefer, a bird in the hand or a successful business that you build yourself in the bush?
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