There are two main paths for commercializing a new product idea. At some point, you’re going to need to decide which one you want to take. Some product ideas are clearly a better fit for one path, but more often than not, the decision is a matter of personal preference.
I speak from experience, having achieved success doing both. For most of my career, I utilized the licensing business model to transform ideas in my head into products on the shelf. When I had the idea to change the shape of guitar picks, I experienced the ecstasy and the agony of venturing by starting and growing a business to bring it to life.
These two paths are very different, and each has pros and cons.
In our society, venturing gets all the glory. To venture a new product onto the market is to go into business for yourself — meaning start a company, likely raise money, and do all of the necessary research and development, prototyping, manufacturing, marketing, sales, distribution, fulfillment, and so on.
Think startup and Shark Tank. Making a venture profitable requires a significant investment of time, experience, and an appetite for financial risk. For example, while a single guitar pick cost less than a penny, I still needed to float a quarter of a million dollars to fulfill orders from Walmart. Read more
