When it comes time to turn your idea into a tangible product, you will have to decide whether you want to start your own business, or approach other businesses to take on the task of developing, producing, packaging and distribution. Do you have the means and the desire to do it yourself?
If you are an inventor who is not necessarily interested in the day-to-day operations of running a business, licensing may be an interesting option to explore. When you license a product (or an idea for one), another business handles all, or part of, the manufacturing, distribution, and marketing of that product for you. In return, you get royalties, which are a percentage of the sales once the product goes to market. There are advantages and disadvantages to the different kinds of licensing deals, and you’ll want to weigh your options carefully before deciding to go that route.