On this page
- The commercialisation process
- Step-by-step: From idea to market
What is commercialisation?
Commercialisation is the process of introducing a new product or service into the market. It means making a concept or idea into a real business opportunity.
For example, a person has a new business idea for a new tool to help tradies. To go through the commercialisation process he/she needs to undergo a process of market research and consultation, development, prototyping, drawing up business, marketing and distribution plans, and protecting his/her intellectual property before it becomes commercially available for sale in the mass market.
Steps to take your product or service idea to market
1. Describe your product or service
Write a clear and concise description of your product or service. This should be easily understood by a person unfamiliar with the concept and demonstrates the features and benefits of your product or service.
2. Protect your intellectual property (IP)
Protect your business ideas before you talk to others about it. Find out which method of IP protection is the most suitable and apply for it.
Ensure that third parties who are discussing your product or idea with you will not divulge confidential information. Use INNOVIC's Confidentiality Agreement template (or a Non-Disclosure Agreement - NDA) to write up your own Agreement.
3. Know your market
Research your market to identify the market, customers and competitors that your product or idea will face. Use a marketing plan to draw up your strategy to identify and reach your customers.Marketing plan template (DOCX 140.2 KB)
4. Assess your skills
Attend an innovation and commercialisation course to assess your skills to see if you have the know-how to bring your product or idea to market.
5. Identify your commercialisation pathway
Speak to an INNOVIC commercialisation expert to decide the best way to bring your new product or idea to market. Your choice of either joint venture, manufacturing, assignment or licensing can affect your future strategy.
For example, if you are thinking of using overseas manufacturers to produce your product, a commercialisation expert will advise you on key issues such as quality control, freight and distribution.
6. Design and complete a working prototype
Write a design brief to outline the objectives of your project and what is required to achieve these objectives.
Use Business Victoria's Checklist: Finding and choosing suppliers page if you need help in researching, designing and building a working prototype using suppliers that suit you. Test the prototype to address any outstanding issues before introducing it to potential investors/customers.
7. Write a business plan with a commercialisation strategy
Write a structured business plan providing details on key areas such as market research, a pricing and distribution strategy, financial projections, and a market entry strategy.
Your plan should also cover your distribution model and potential distributors. It should cover questions such as:
- how much in commissions will the distributors expect to be making?
- what minimum or maximum amounts of stock are acceptable?
- which wholesalers and retailers are they distributing to?
- can they provide testimonials from current clients?
- how will unsold or undistributed stock be dealt with?
- are they willing to negotiate a written distribution agreement?
8. Explore funding options
Depending on the nature of your product or concept, key funding options that you can consider include: