You may have a great idea for a new product but one of the biggest issues you face is securing the financial investment to make your idea a reality.Taking on product development is a huge undertaking. Between the industrial design, the market studies and the manufacturing process, you may not have the money in-house to see your project through to the end.Luckily, you can find help for your financial needs. Whether through private investors, self-financing or with the help of government grants and subsidies, there’s a way for you to accomplish your goal.In this post we want to show you some of the best options for securing financial stability for your product idea. We’ll talk about why it’s not necessarily the best idea to run to the bank to secure a personal or small business loan straight away.We completely understand - having a brilliant new idea can be an inspiring and exciting time in your life. But let’s take a step back and make sure you get the best bang for your buck by maximizing the funding options that are available to you. Let’s have a look.
What kind of funding is available for your product design?
To keep your eyes on the prize - your awesome new product idea - it’s important that you have the comfort of knowing your finances are in order. Luckily for you, there are a few ways that you can maintain financial viability and reduce your risks.There are government grants, tax reliefs, patent box programs and corporate invention competitions that can all be lucrative for upstart inventors like yourself. Let’s break down some of the available options that don’t involve running off to your bank for a loan:
- Government tax relief. Specifically as an incentive for research and development, tax relief can help you get back up to 30% of your costs as cash. Learn more about tax reliefs in the UK.
- Crowdfunding is all about enlisting the financial support of the general public through online advertising campaigns. While they can be lucrative, the market is also competitive and it can be tricky (but not impossible) to convince users to give you their hard-earned cash.
- UK Research and Innovation is a national agency that funds advancements in UK-based science and research. It partners with universities, businesses and the government to help innovators like you get ahead.
- Innovation competitions allow you to compete with other businesses to design and develop a product for specific purposes. Doing so can give you access to funding and expert help that you may not be available if you decide to go it alone. Read more about competitions here.
- Professional networks and events can help you meet new contacts, investors and like-minded business professionals. You can learn from experts and those who have gone through the same experience as you. You can also learn about expressions of interest that attract inventors like yourself to design a product for an established need.
- Enterprise Europe Network
- Knowledge Transfer Network
While all of these options can help boost financial security of your business, the guidelines and the path toward accessing them is often not very clear.On top of that, there are also other great financial and accounting-based tricks that can help you defer your expenses and capital outlay into the future. Doing so involves the professional help of accounting and financial services.Innovolo can help get you paired up with the professional help you need. We’ve picked up a few tricks over the years to help you fully maximize the funding and product design incentives that are available to you. We can help you navigate the financial world to make sure you get the best returns for any hard-earned cash that you put into your product idea yourself.A consultation with our innovation experts, especially when paired with a product feasibility study can help you define your new idea for a product or service. We’ll take a closer look at that a little later.
Keeping your head
Still thinking about going it alone?Your first thought might be to lobby friends and family for the oh-so-generous financial backing of your loved ones. That might be a great way to secure some funds, especially if you can successfully sell them on your idea.However, relying on your loved ones can put them at risk. Bringing a new product to light isn’t always easy and there may be bumps along the way. Especially if you try to do everything yourself, you may experience the financial risk and investment headaches that could jeopardize your funds and put stress on relationships.Your second thought might be to head to the bank where you keep your personal finances and ask about a personal loan to help develop your business idea.There are a few issues with going to your personal bank, mainly:
- You may not yet know how much funding you need;
- You haven’t yet maximized the financial flexibilities available to you. Why head straight to the bank when the expenses of your product development may be covered by tax reliefs and government-based innovation funding?
- You don’t yet have the complete picture of your project; and,
- You don’t have the industry expertise to negotiate the best terms for your loan.
Working with Innovolo to secure your financial stability
Without a complete picture of your product development project, it’s very hard to get the best quote from a small business loan or apply for government-backed innovation funding.At Innovolo, we can help you with the financial aspects of your product development. We work on a case-by-case basis that’s custom-fit for each individual. Let’s have a no-obligation and confidential conversation about your business. We’ll discuss the strengths and challenges of your project and make sure you’re set up to reduce risks and get the best funding possible.We can take stock of your current financial situation and figure out what kind of investment it may take to get your project off the ground. From there, we can choose from a list of available funding options and from special financial deals we can broker on your behalf. We’ll help you find the best financial solution for your business.
It all starts with a product feasibility study
The product feasibility study is the reality check for your product idea. It gives you a full report and helps you understand your product development schedule and its financial needs. It contains a wealth of information that you’ll need when you talk with investors or the banks.The best part is that the product feasibility study is free of charge for any New Product Design (NPD) projects which is our full-service support tailored to launching your product ideas.Why wait? Send us your idea online (completely confidentially) and book a free consultation session to get some tips on whether your idea has commercial potential.