There are a range of myths associated with taking an invention from the idea stage to commercialisation. We are exploring the top 3 myths over the next few days, with some commentary on the reality from Andrew Fern at the Australian Institute for Commercialisation.
Andrew says: “Even the absolutely simplest device with a single part will cost between $50,000-$100,000 to make ready for mass production.
Again, by way of example, one company we are dealing with built their original proof of concept for around $25,000. It was quite a complex mechanical device and the proof of concept worked, although not reliably. Design for manufacture engineering quotes averaged $2m.
It is easy to underestimate how much it costs to go through this stage. A proof of concept is very rarely a final design ready for customers. Consider issues such as compliance with legislation and standards, support, customer documentation, warranties, product insurance and supply chain issues when thinking about whether or not your product is ready to go to market.”
Time to start saving!
Myth #3 will be about patents.