• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Global Patent Research and Alerts | Pearson Strategy Group, LLC

Helping businesses look before they leap. - TM

  • HOW WE HELP
    • Overview of Services
    • Patent Searches
      • Innovation Strategy
      • Patent Analytics
    • Patent Searches for Patent Attorneys
    • Keep Up with Your Industry and Competition
      • Patent Alerts
        • Live Alert Demonstrations
          • Additive Manufacturing – Recent Patents and Applications Alert
          • Aerial Drones (UAVs) – Recent Patents and Applications Alert
          • Blockchain – Recent Patents and Applications Alert
      • Recognize Your Threats, Opportunities
        • Adjacent Technology Example
        • Emerging Technology Example
        • Disruptive Technology Example
      • Competitive Intelligence
      • Custom Market Research
    • Additional Support
      • Frequently Asked Questions
  • ABOUT
    • About Us
    • Meet the Founder
    • Alliance Partners
    • Philosophy
    • Trusted Suppliers
  • SUCCESS STORIES
  • CONTACT
  • NEWSLETTER
  • BLOG
  • Search

Cowboy? Builder? Blabber? Do you recognize your Company’s innovation style here?

 

Culture plays a big role in how companies innovate

After working with and mentoring hundreds (maybe thousands) of new and established companies, I’ve noticed that they typically fall into predictable groups. I decided to share these groups with you to see how well they stack up against your perspective.

These fanciful labels are based solely on my observations and I’ve added a few comments about each. No surprise, my most frequent advice to all of these groups is that they need to gather more information before proceeding.

The cowboy (or cowgirl)

Cowboy on bucking bronco

These innovative companies love the idea of inventing a disruptive technology. Their excitement for coming up with a new idea — never conceived of by anyone before — is palpable. How exhilarating for everyone who knows them! Unfortunately, the companies in this group often don’t consider or care about whether there are already competitors operating in their space or whether their entrenched competition could make a course correction.

Observation: I believe that there is always competition for any new idea. When those imagined future customers simply choose not to buy the product or idea, the lack of action is serious competition.

Builders

Building under construction

Companies in this group are often comprised of people with technical backgrounds and I’ll wager most engineers fall into this segment. Common characteristics include conducting a lot of technical research and product development, often including building multiple prototypes and/or spending over $100,000. Software firms often fall into this segment by investing early in coders to build out their idea. Near the end of their R&D cycle, they will then start to consider their intellectual property options as well as the hiring of salespeople. These two actions often occur late enough that money is tight and the opportunity to make course corrections is not feasible.

Observation: Waiting too long to explore steps on how to monetize an idea and learn about the market that will buy your product can result in missed opportunities and wasted cash.

Pushers

Tugboat pushing aircraft carrier

These entrepreneurs think they will be able to redefine an existing marketplace despite well-known and entrenched competition. Many will not consider that the entrenched competition could pivot should the inventor’s idea become a threat. The competition often has deeper pockets, well-developed manufacturing, distribution, branding and customers that afford them a significant advantage. Of course, these companies also offer an opportunity since any one of them might want to buy out or license that idea.

Observation: Instead of planning to disrupt established competition, consider the various methods for protecting your idea and whether licensing will make sense.

Unfocused

Random letters

These folks have so many ideas that they can’t focus on anyone. Perhaps they need to go through a prioritization exercise first. Perhaps this group’s preferred zone could be as the source of ideas to others rather than being an implementer of any single idea.

Observation: I often suggest that inventors in this category consider whether they can fund their array of ideas by picking the one most likely to be profitable and monetizing it first. I find myself in this category as I keep a spreadsheet of inventions but I’ve paused on implementing them while I monetize my first idea. If I can’t monetize my “best” idea, my odds of monetizing the others must be lower, right?

The blabbers

Sailor using megaphone

These companies have people that love to tell anyone and everyone the details behind their idea. Maybe spilling some high-level thoughts on willing ears could be a form of primary market research to determine whether to proceed with the idea, but this is often merely bragging. I cringe upon hearing extreme details of how a potentially novel idea will work without the minimal protection of an executed NDA (Non-Disclosure Agreement). [“Yes”, I realize NDAs are not appropriate for every discussion but that’s a post for another day.]

Observation: Being a non-blabber is generally safer. While they may not understand all the variations of how to protect an idea, non-blabbers generally are very conservative about spreading information. Good! Even better, know how to communicate just enough to build a group of interested buyers or funders that can be leveraged later.

We’ll patent everything

US Patent Certificate

This group realizes that patents can be a powerful form of intellectual property protection but to a fault. Because patenting is the only method they understand, they don’t consider that there may be better options. Plus, they generally believe that one or more patents will bring them lots of money from the day they first receive their grant.

Observation: Patents are not cash machines and cost a lot, especially when money is tight (ballpark $10,000 for the smallest companies, larger companies will need to set more aside). In fact, in some cases, the patent process may cost more and provide less protection than options such as trademark, copyright, or other forms of IP protection. Bonus observation: Establish an early rapport with an IP Attorney who may help advise which methods should be used and when they should be pursued for maximum advantage.

Bootstrappers

Boot straps

Bootstrappers have an incredible amount of pride in developing their new company’s fresh idea and will reject any outside influence, including money, that would/could take even a small amount of ownership away from them.

Observation: I fully appreciate the mentality here as I’m guilty of bootstrapping both of my companies. However, bootstrapping restricts the available cash and pushes the point of profitability so far out that the company wastes precious time and money resulting in failure. Know your options early so that you may leverage one of them should you change your mind. My good friend and mentor Jan Triplett has documented hundreds of options for financing companies. Wow!

My idea is worth billions

Dollar sign

This group often overestimates future market opportunities, even if they can execute perfectly. These excessive valuations are often justified because the idea seems new and “everyone will want/need my idea.”

Cold hard facts: New ideas are rare. My research commonly finds that ~95 percent of ideas already have prior art that is dead-on or extremely similar. Worse, those ideas that are novel enough to have patent protection have steep odds of ever being monetized: A mere ~6 percent pass muster here. Ultimately, 65 percent of new products fail for established companies and 90 percent of new products fail at startups. [1] Bonus thought: your legal risks go up significantly when many patents precede your own.

Recognize your company on my list? Please share in the comments below.

 

Citations

[1] “If You Build It Will They Come: Three Steps to Test and Validate Any Market Opportunity” Rob Adams (2010)

Graphics Credits (Wikimedia):
Spencerville Stampede, July 2014 (cjuneau)
Construction of Azersu tower (Emsybax sabir)
Defense.gov News Photo 010322-N-0271M-005 (Airman Apprentice Lee McCaskill, U.S. Navy)
Magnetic letters scattered on a refrigerator door (lylamerle)
Getting em up (U.S. National Archives and Records Administration)
US Patent Certificate (Unbiassed)
Boot Strap (Eitan f)
Dollar Symbol (Rugby471)

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Reader Interactions

Leave a Comment Cancel

Your email address will not be published. Required fields are marked *

sidebar

Blog Sidebar

Subscribe to Our Newsletter Overview of Our Services Schedule a Consultation

Recent Posts

  • Intellectual Property Strategy for SaaS Startups
  • How to Confidently Decide Between a Provisional and Non-Provisional Patent Application for Your Invention
  • Summer 2021 Newsletter from Steve Pearson
  • How to Leverage the Amazon Brand Registry
  • Approaching Patent Valuations, Common Methods and Qualifications of Analysts
  • Understanding Patents and the Need for Valuation: The Basics
  • Summer 2020 Newsletter

Footer

Let’s Talk

What to expect. Sample reports. Pricing.

  • This field is for validation purposes and should be left unchanged.

Recent News

Andrew Rapacke

Intellectual Property Strategy for SaaS Startups

From Steve: Please welcome returning guest blogger Andrew Rapacke. Andrew is the managing partner at The Rapacke Law Group, a full-service intellectual property law firm. Andrew’s post examines several important topics software companies need to Read More

Randi Karpinia

How to Confidently Decide Between a Provisional and Non-Provisional Patent Application for Your Invention

From Steve: This Guest blog by Randi L. Karpinia, esq. covers what could be the most common inventor question. Randi Karpinia, author of Sagacity Legal’s “The Legal Blog”, helps small businesses and entrepreneurs minimize their legal risks. Read More

Social Media

TwitterYoutubeLinkedin

Phone: 1-512-466-1450 | Email: innovate@pearsonstrategy.com

© 2023 Pearson Strategy Group, LLC. All Rights Reserved