Home Ec-Inventing 101
Thursday, April 06, 2006SUSIE GHARIB: We all hear the success stories of entrepreneurs who turn their ideas into multi-million dollar winners. But what about that business idea you might be kicking around in your head, but don`t know how to get started or whether even to bother. In tonight`s "home ec" segment, Brett Graff talks to some entrepreneurs and gets some advice from the experts.
BRETT GRAFF, NIGHTLY BUSINESS REPORT CORRESPONDENT: Forget Madonna. Today`s moms want to be Julie Clark, founder of the baby Einstein books and videos. One day Clark`s in her basement, video taping her cat. And the next day, she`s selling her company for way more than $20 million. Julie Clark decided to mix baby videos and Beethoven after unsuccessfully searching the stores for classical music toys. Parents think about filling voids in the market all the time. So if you have a great idea and are totally sick of not having millions of dollars, here is how to start.
PETER MATOS, PATENT ATTORNEY: Well the very important first thing you should do is really try to protect your invention. Because the moment other people start getting involved in the process, other people start sharing in the invention and that has ramifications regarding ownership. So it`s really very important that some advice be sought relative to how do I protect myself before you go out there and start doing a lot.
RAUL LIZASO, DMD/INVENTOR: I invented -- we call it the baby boater. It`s basically similar to a car seat but it`s for a boat for child safety.
ROBERT VAN DER WALL, PATENT ATTORNEY: Only about 5 percent of patents that are granted become commercially successful. So it`s a high risk type thing.
GRAFF: For dentist Raul Lizaso, it`s a risk worth taking. So far, he`s spent $20,000 and two years just to design and patent his product.
MATOS: There are unfortunately two related but very different issues that most inventors need to worry about or at least think about. One is how do I protect myself so that nobody will copy me? And then the other is how do I make sure that I`m not infringing somebody else`s patent such that I will get sued.
GRAFF: Denise Magarino`s daughter wanted to start a scrapbook, but her mom could only find materials for adult women. So two years ago, Magarino started an online scrapbooking club for girls. Today, the business is breaking even.
DENISE MAGARINO, SCRAPLOCKER: We need a lot of members. Basically, it`s like everything. We`re a membership based business and so the goal is to have thousands and thousands of members.
GRAFF: Nowadays, being in business means being online. But even a knockout website needs to generate traffic to generate sales.
MATOS: The typical individual inventor is often somebody who is frustrated with something. They`ve come up - they`ve been doing something that they are just having difficulties with on their job, at home, mothers with their children, something along those lines. They`re just fed up with something and they want to fix it. They want to make it better. And, they`ve come up with something to make their own daily lives better. And they figure, hey other people can benefit from that and maybe I can benefit too because I can make some money from this.
GRAFF: Basically, get all the expert advice you`re offered but do not ignore your gut. Clark, now a multi-millionaire mom, says she successfully defied the odds by making it up as she went along. Brett Graff, NIGHTLY BUSINESS REPORT, home economist.
