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  • #972301
    gold
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    Hi All,
    So happy to find this community!
    I am a young entrepeneur in the early stages of creating my business.
    I have created a product I believe will be sucessful and have my detailed plans drawn and now i need to employ others to move forward in creating a prototype.
    I have been trying to research the steps I need to take but am finding it a bit difficult as to the direction to take.
    I was hoping someone could help with some information on how to succeed in this process.
    What I need done is my plans to be converted into a 3d cad model in order to be plastic injection moulded. I have contacted a company that says they could do this for me.
    To save some money I am considering have a friend of a friend designer assist me with the 3d cad design(as a side project) before approaching the moulders for a quote.

    So this is where Im at. Firstly my questions are:
    Should I be a registered business whilst im prototyping my product?
    Can I even be a business without income?
    Any tax considerations?
    Should I have the people I correspond with sign Non-disclosure agreements?
    Once I am happy with my product then what the hell do I do?
    If I register what type of business should I be?

    Please share any stories you’ve had in developing your products and any advice for a complete newb to the business world.
    ie (dont do this or do do that)
    Thank You

    #1055198
    King
    Member
    • Total posts: 2,212
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    gold, post: 67922 wrote:
    Hi All,
    So happy to find this community!
    I am a young entrepeneur in the early stages of creating my business.
    I have created a product I believe will be sucessful and have my detailed plans drawn and now i need to employ others to move forward in creating a prototype.
    I have been trying to research the steps I need to take but am finding it a bit difficult as to the direction to take.
    I was hoping someone could help with some information on how to succeed in this process.
    What I need done is my plans to be converted into a 3d cad model in order to be plastic injection moulded. I have contacted a company that says they could do this for me.
    To save some money I am considering have a friend of a friend designer assist me with the 3d cad design(as a side project) before approaching the moulders for a quote.

    So this is where Im at. Firstly my questions are:
    Should I be a registered business whilst im prototyping my product?
    Can I even be a business without income?
    Any tax considerations?
    Should I have the people I correspond with sign Non-disclosure agreements?
    Once I am happy with my product then what the hell do I do?
    If I register what type of business should I be?

    Please share any stories you’ve had in developing your products and any advice for a complete newb to the business world.
    ie (dont do this or do do that)
    Thank You

    Tax wise product development is an allowable expense. Might be worth registering yourself as a business just to be sure (even a sole trader.

    NDA – yes – is it something that is patentable – think about that before revealing it to ANYONE

    #1055199
    MyGreatIdea
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    • Total posts: 2,278
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    Talk to a patent attorney before you do anything!!!! Apply for a patent and trademark.

    Talk to your accountant about registering as a company. There are R&D rebates (over and above your tax deductions) which you may be able to claim. You need to register with the ATO for R&D, then submit a schedule with your company tax return to claim the rebate. I think the closing date for registering is October after the financial year you wish to claim.

    An industrial designer should be able to give you drawings and a 3D computer generated image of your product.

    If you are taking your drawings to a factory for quoting for tooling, get a confidentiality contract signed first. Find a factory that can also supply packaging, instructions etc. Expect to pay for up to three tooling samples before your product is ready to manufacture – there will always be things that need changing before your product is ready.

    The best advice I can give is DON’T TALK TO ANYONE ABOUT IT !!! Your partner may mention it to a best friend, who tells their husband, who is overheard telling a workmate – next thing you know YOUR idea is in the marketplace – it does happen.

    Good luck, and feel free to PM me if there is anything I can help you with.

    Wendy

    #1055200
    gold
    Member
    • Total posts: 2
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    Thank you both, Im not sure if it is patentable as the product exists already. I am just improving the product dramatically and adding one original component. I fear that worrying about this too much may stalll my efforts in moving forward as I am on a low budget.
    it seems like a drawn out process to me. I am pretty keen to get it made.

    Was wondering if an nda is useful if i use “a guy” rather than an industrial designer to do this for me. just looking to save a bit of money and he seems to have the skills, but I want to still protect my idea.

    #1055201
    MyGreatIdea
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    • Total posts: 2,278
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    gold, post: 67975 wrote:
    Thank you both, Im not sure if it is patentable as the product exists already. I am just improving the product dramatically and adding one original component.

    Go and see a patent attorney !!!

    If the product already exists, you need to make sure that the changes you are making are enough to have a new, patentable product. You could be breaking patent laws if you go ahead and manufacture it. You need to get this checked by a patent attorney. Yes, it will cost you, but not as much as being sued could in the future. Not to mention all your time and money put into your product.

    If your changes ARE enough to be patented, then DO IT!!

    Wendy

    #1055202
    Klublok
    Member
    • Total posts: 70
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    Should I be a registered business whilst im prototyping my product?

    If you think it will be successful then you should be a registered business. Further you may give a more professional image if you are a registered business.

    Can I even be a business without income?

    Yes you can. You can even run at a loss. This goes back to the question above. It might be worthwhile recording all the expenses you have spent on the development, marketing etc on the prototype from now on. Such record would be good if you decide to add in partners or other shareholders so that you can show them how much financially you have incurred already and could help justify their buy-in.

    This may also assist in reducing some of your profits (when you start making revenue, or even reduce your profits when you sell the design to another company).

    Any tax considerations?

    You need to consider the structure of the business carefully, as once things start to happen, any changes you may need to make could costs significantly in terms of capital gains tax, stamp duty etc.

    Essentially start thinking about what your end goal is – whether it is selling off the patent, lauching the product yourself and selling it yourself etc. Also think about asset protection – either from a creditors, divorce or employees etc. Your patent would probably be your most valuable asset, so preferably that should be held either by a family trust or a company with shares held by a family trust.

    Should I have the people I correspond with sign Non-disclosure agreements?

    Definitely yes

    Once I am happy with my product then what the hell do I do?

    Market it to the appropriate people.

    PM me if you want to discuss more about structures etc

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