August 2013 SCORE

The agenda for the August meeting included a presentation by Vern Lindsay of SCORE.

SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. For more information, visit their local website. Their office is located at 412 North Cedar Bluff Road, Suite 450, Knoxville, Tennessee 37923.
Phone: (865) 692-0716
Hours: 8:30 AM to noon on Monday, Tuesday and  Thursday. The office is closed on Wednesday and Friday.

Vern Lindsey is an account executive, He introduced the purpose of SCORE.  The organization can help you with the basics of starting a business or improving a business. SCORE has both counselors and resources. SCORE’s original purpose was to entrepreneurs writing business plans. Bankers usually require a business plan if you need  financing. Currently SCORE is searching for new members willing to help the community.

The presentation by Vern started by explaining the three paths used to convert your patent into revenue: do it yourself, license the patent, or sell the patent.

Do it yourself - It rewards you with personal satisfaction of seeing your invention € ourish and being in control.  The drawback is that  financing is almost always needed. We must build a relationship with the bankers and create mutual respect. Never walk into a bank with your hat on. You must determine who is making the decision at the bank and have a well formed business plan.

License the patent - You can license the manufacturing, the marketing or all the aspects of your product. This process requires less money and provides a steady income. € ere is no need to provide business infrastruc-ture. It is less stressful. € e disadvantage of licensing the patent is that the percentage of the product that your partner agreed to pay can be manipulated easily. How do you know if you are really getting the percentage of the product? Usually, the percentage gain is a er taxes and all the other expenses. SCORE recommends hiring a lawyer before licensing the patent. Wording and terms can mean several things when licensing the patent.

Sell the patent - We all hate to sell our baby and the thought that your invention may never ‚ flourish because of lack of passion from the buyers, but you are going to receive a worry free lump sum. You won’t need a business infrastructure but you must  find the correct person to buy.

The three methods mentioned above need the three P’s: people, purpose, and planning.

The Business Plan has two primary purposes. It is a document to obtain financing and it is also a guideline to where you want to go with your business. The business plan must be reviewed and possibly revised every few months to ensure the path is being followed accordingly. To obtain financing, banks want to know if you have good credentials as a business manager. You must have a team. €The bank also needs to know your profit numbers. You must present realistic future gains. € The bank will also analyze your cash ‚ flow and personal credit.

Before embarking into any of the three paths discussed above, you must do a market analysis. €Think on what makes you stand out from other similar products and get the right person and people involved. Determine the market potential of your product and perform a demographic analysis.

Presenting your plan - Try to get the attention from the bank and be ready to answer the question, “What is in it for me?”