Picking up the office phone or opening my inbox – no two conversations or emails are ever the same! That’s the beauty of the design world, you never know what idea you are going to be presented with next! Yet the passion and enthusiasm behind the individual’s concept is always consistent.

Coming up with that unique idea however, is the simple part. It’s the research that follows, identifying your target market, applying for a patent, and then being aware of how you will fund your project; all of these things are as important as knowing the difference your product will make in the world.

Therefore, when asked the question, “How do you plan to fund your project?” it’s always good to have given it some thought… The design process, along with the manufacturing and the marketing stages are going to cost money. Yet it’s knowing just how much of it you’ll need, that’s the problem. Do not feel disheartened at reading this however! There are several finance options available to you! The main sources are as follows;

-Self Funding

-Crowd Funding

-Government Grants

-Private Investment

Self -funding the project involves using your own money. Nice and simple, especially if you have the funds readily available and you are prepared to invest it in your idea. Just bear in mind, the road to designing and manufacturing a product can be an uncertain one, so if you encounter bumps along the way, you may incur additional costs.

Crowdfunding your project is when you put your product onto an online crowdfunding platform and ask people to buy it before it’s even been made! This method also enables you to market your idea before you’ve even started making it. It’s creating awareness of your product, generating excitement and then when consumers decide they absolutely do need your product, using their revenue to manufacture it. The problems arise when you don’t raise the funds you need, so possessing marketing knowledge is helpful.

Government grants is an area that ITERATE have had lots of direct experience with. If you are working as part of a business on an innovative project, then applying for a grant to assist you in the research and development phase of work, may just be beneficial. Grant funding can be a good option for established businesses that have a track record of achievement, but you do need to be eligible…

Have you seen Dragon’s Den before? Private Investment is just this -pitching your idea to high-net-worth individuals, in the hope they capture your vision and offer to invest in your product. In return however, you give them an agreed share of your business. Having an opportunity such as this, can enhance your likelihood of success, yet you also have to be willing to part with a percentage of your business.

These are the different methods of funding your project, in a nutshell! If you’ve found this blog useful, you can get your copy of The Product Innovator’s Handbook from our Store.