Have you ever had a million-dollar idea, put in on the shelf for a while, and then find out that some entrepreneur beat you to the punch? The sad truth is that sometimes being inventive or creative isn’t enough. You need to know how to connect your great ideas to those who have the knowledge and means to get your idea off the ground. Don’t let the modern market world intimidate you though. If your idea is good, you just need to keep in mind the following steps.

1. Do the Homework

Yes, you have an idea, but do you know your idea? Take some time to look into the market attached to your idea. Many entrepreneurs take this step for granted, but you’re going to need to do your research well if you are going to do well in step 2.

By doing your research you will prepare yourself to sell your idea, because you will know what the market needs are, which companies in this market might want to buy your idea, and you may even get some inspiration on how your idea could be better. Cover your bases and look into patent laws and your product’s probable production process or processes. Don’t rush through step one, or you may find yourself stuck later on.

2. Put together your Presentation

First in introductory letter, and then in a pitch meeting, you are going to need to present your idea to a company who will buy it from you. Here are the top four things to consider when putting together your presentation: desirability, risk, development details, and legal status.
Desirability – What problem or need does this product address? How is it unique or better than any pre-existing product that attempts to fill the same niche? Is it cheaper, faster, or more effective? Who can this product be effectively marketed to?

Risk – Every new product is a risk, but the lower the risk is the more likely businesses will want to invest in/buy your idea. Your job is to make your idea seem less risky, and you do this by the clarity and mode of your presentation.  For clarity’s sake, include a pristine introductory letter, a one to two-page product summary with figures, graphs, and a 3D prototype model where possible. In terms of format, there are several different proposal styles you can use to convince your audience that your idea is worth the risk, but in all cases you must boost your ethos by connecting your product to familiar, authoritative figures, be that the Harvard Business Review, your audience’s current products, or even your audience’s successful competitors.

Development Details – They need to know what you are offering them, but also what you need from them in terms of development. Apart from the obvious areas of mass production, marketing, etc., what else is still missing from your idea? It’s okay to begin with thinking, “I have an app idea but no programming skills handy” or “ I have the best idea for a new kitchen appliance, I just don’t have the engineering skills to make it” as long as you are ready with strong suggestions and figures on how your idea can be completed.

Legal Status – All patent, copyright, and trademark info needs to be on hand, to protect both you and your prospective buyers. Most, if not all, of your legal questions should be answerable by the USPTO.

3. Balance Your Benefits

You can’t expect to get the perfect deal on your upfront payment, royalties, annual minimum and exclusivity. To boost one of these benefits you’ll have to be willing to sacrifice a bit on another. Which benefits you choose to capitalize will depend on your long-term needs, short-term needs, and your expectations for how well your product is going to do in the future.  Remember as you negotiate that you are aiming for a friendly agreement that will give both you and your buyers what they ultimately want.

Creativity is still an essential component of capitalism, so go for it! Do your research, prepare your presentation, and negotiate smart because your million-dollar idea won’t just take off on its own.