Turning an Invention into Money

Abstract

How does an inventor turn their new invention ideas into money? After reading this scenario, that is the question posed. Understanding her lack of knowledge in the area of inventing and what it will take to bring her invention into fruition says that this will be a long grueling , expensive and perhaps unachievable task. Without proper management skills, the financial backing, skill, start-up money, the time it will take to dedicate to this project and having no education on manufacturing it's very hard to see an invention converted into a real working model. However, that should not stop you from inventing; after all even Thomas Edison had his failures. To save time and money due to huge mistakes, hire educated professionals to handle things like patent searches, which legal form would work better for your business and assisting with a business plan and proposals. In this case where the money is very limited I would advise the inventor to do the majority yourself or preliminarily prepare and save money to prevent from being taken advantage of.

THE PROS AND CONS OF INVENTING 3

Like all aspiring business owners, the decision whether to classify your company as a sole proprietorship, partnership, corporation or other type of legal entity is one of the most important decisions to make for the company. But deciding on the right kind of business formation isn't difficult at all. It's based on the type of business you will start. You should assess the types based on your available time, commitment and resources, and consider long-term goals for your business. The form of business you choose will affect the way you file paperwork, face personal liability, pay taxes and, if necessary, file for bankruptcy protection.

There are three basic types of business structures, sole proprietorship, partnership and corporation. There are several advantages and disadvantages of the three business structures. Sole proprietorships, one person owns and manages a sole proprietorship, which means you are responsible for all debts incurred. Sole proprietorships work really well for the new entrepreneurs because they're easy to start and these unincorporated businesses can always change into an incorporated business later on. The advantages of a sole proprietorship is easy, inexpensive, complete control of operating decisions, generated income goes to the owner to keep or reinvest , finally, it's easy to dissolve if the business does not go as planned. The disadvantages are unlimited liability, funding difficulties, less attractive to prospective employees, and the Internal Revenue Service recently has put more focus on sole proprietors because they tend to underreport their income.

THE PROS AND CONS OF INVENTING 4

Corporations, shareholders own a corporation, but this independent entity is liable for its debts and actions. A corporation has complex legal and tax requirements. The advantages are limited