Innovative Consulting · Innovation

What's the best way to negotiate terms with an Inventor as an Innovation Consultant?

Anonymous

March 10th, 2016

As Innovation consultant one picks up on a whole lot of new inventions and innovations. What's the best way to negotiate terms when the inventors product lacks a few enhancements to make it better and I have to commercialize the product...especially when the inventor does not have any cash to pay for consulting fees?

Scott McGregor Advisor, co-founder, consultant and part time executive to Tech Start-ups. Based in Silicon Valley.

March 10th, 2016

This is common. There are a continuum of choices. 

On the one hand as a consultant your job is to advise and recommend, so you can write a report with your recommendations, including advising raising more cash on the basis of the recommendations and leave it to the inventor to either do that and engage you for implementing the recommendations. This is the most passive approach and conserves your resources.

On the other hand, in the most active role you act as entrepreneur: you find suppliers or contractors who willl work for deferred cash, royalties or equity, you find distributors who will advance cash or invest, you find lenders and investors who will give the company working capital and to cover your fee. You might even take your fee inequity or a percent of new sales.You wrap up all the proposed contracts with a bow, give it to the inventor and say my recommendation is that you sign these contracts that will bring about the enhancements I have proposed, and finance the work and my fee. If the inventor accepts them you get your fee. If they don't you go unpaid.

And since this is a continuum there is all the possible solutions in between.

Marlon Green Passionate Entrepreneur, Experienced SharePoint and IT solutions Specialist, Inventor of THE MUWS, Innovator and Business Analyst

March 17th, 2016

​Thank you, makes a lot of sense.​