The previous information contained in this post has been updated. 

(Featured Photo: Wikimedia Commons)

Google has updated Google Patents, a search engine that can be used to find the most relevant references for judging whether a patent is valid. Google says the tool can be helpful to both expert and “the public.” However, a word of caution: Patents and trademarks can be a nuanced and arcane topic so consult an expert before making any business decisions related to patents.

Traditionally, patent searches focus on other patents. But the best “prior art” (information made available to the public before the date someone may have filed a patent claim) might not be found in a patent, but in a harder-to-find book, article, or manual. Google says it has helped solve this challenge by incorporating search beyond “patent search” in seeking patent-related information.

“The ability to search for the most relevant references–the best prior art–is more important today than ever. Patent filings have steadily increased with 600,000 applications filed and 300,000 patents issued in 2014 alone. At the same time, litigation rates are continuing their dramatic climb, with patent trolls bringing the majority of cases, hitting companies of every size in industries from high-tech to main street.”

Allen Lo, deputy general counsel for patents
Ian Wetherbee, software engineer for Google Patents

According to Google, the new Google Patents helps users find non-patent prior art by cataloguing it, using the same scheme that applies to patents. “We’ve trained a machine classification model to classify everything found in Google Scholar using Cooperative Patent Classification codes. Now users can search for “autonomous vehicles” or “email encryption” and find prior art across patents, technical journals, scientific books, and more.”

Key features of the new Google Patents

Photo: ThinkStock

1. Identify a critical need or desire felt by the people who will be your customers

Product development begins with understanding a customer’s needs so well that you can anticipate solutions to the challenges they face or the accomplishments they seek. If there is genuine customer need, begin developing a way to solve it by deconstructing the need into segments. Ask about each one, “Is there a better way?” The end goal in this phase is to devise a product that fulfills an unmet need of your customers. Without a need, there is no product.

2. Recruit and assess help

Once you have an idea, the next step is to determine whether or not the idea has the potential to grow into a successful product. What does success look like? Your sales generate more that it costs to produce and market your product. The wider the margin between what it cost you to produce and how much customers are willing to pay is the metric that will determine whether or not the product is worth developing. At this point, you need to turn to experts in marketing, production, distribution, and a wide array of other factors, depending on how you are making your product and how you plan on selling it. If you don’t have such people working in your business already, it may be a good time to start adding up how much it’s going to cost you to even figure out what all your expenses will be.

3. Develop

(Image: on Flickr via Iowa Digital Library )

Do the numbers work? Is your product viable? If so, actually developing it is the longest and most important step in product development. Managing a development team in any business can be tricky, but in a small business it can be especially tough as most employees working on the team will already have their own work. Staying flexible and offering incentives are some good way to motivate and support your team as they juggle their duties.

4. Review

(Image: on Flickr via YoavShapira)

Before the product is launched, getting feedback from customers and distribution partners will ensure that the project plan’s original objectives are still being met. Reviewing your product allows an extra step between its development and release so that your team can address any shortcomings or adjust last-minute details.

5. Launch

(Image: on Flickr via lecates)

The launching process focuses mostly on sales and marketing. Or perhaps raising the funds to do those. If so, you may want to add another step in the process and look into the possibility of using a crowd-funding platform like KickStarter. Successful Kickstarter ideas typically have been taken through some stage of prototyping, so potential customers can clearly understand the benefits of your product.

Best chance for success: If you are a small business and have existing relationships with clients and customers, marketing your product through your traditional channels–from concept to delivery–is the best way to ensure success.

(Featured photo: ThinkStock)

Since the surrender of Cornwallis at the end of the Revolutionary War in 1781, those who live in different American regions have been debating what area is the most, well, American. Fortunately,these days, those debates tend to be good-natured and focus on things like food and football. However, when it comes to looking for a place to test market a new consumer product intended for a national market, finding metro areas that are “most American” actually serves an economic purpose.

Microcosm cities’ role as test markets

For consumer marketers, it is a standard practice to test a product in a market area that serves as a microcosm of the type of audience you will be targeting when you scale the product nationally. In theory, that enables the marketer to see if the product and approach to marketing it works without going to the expense of introducing the product nationally. So, the theory goes, if you have a consumer product intended for a national market one day, test it first in a market that is a microcosm of the nation as a whole.

What American cities are most like the entire country?

In trying to determine which of the largest 366 U.S. metropolitan areas serve as the best (or worst) microcosms of the entire country, the price-comparison website WalletHub.com examined 26 key metrics, including factors like age, gender and income as well as household makeup and housing tenure.

According to their research, here is a listing of the top 25 cities where you’ll find a local population that reflects the characteristics of the nation as a whole. In other words, if you have a product intended for a mass audience one day, these are good places to start testing it in a “micro” sort of way:

1. Nashville, TN
2. Cincinnati, OH
3. Indianapolis, IN
4. Charleston, SC
5. Jacksonville, FL
6. Greenville, SC
7. Oklahoma, OK
8. Phoenix, AZ
9. Albuquerque, NM
10. Winston, NC
11. Birmingham, AL
12. Greensboro, NC
13. Orlando, FL
14. Charlotte, NC
15. Columbus, OH
16. Louisville/Jefferson County, KY
17. Lexington, KY
18. Tulsa, OK
19. Baton Rouge, LA
20. Columbia, SC
21. St. Louis, MO
22. New Orleans, LA
23. Kansas City, MO
24. Tucson, AZ
25. Little Rock, AR

Where does your city rank?

You can find the complete list of microcosm cities on the WalletHub.com website. Here is an interactive map they’ve created, also (hover over the dot that will appear in a magnifying glass):

Disclosure

SmallBusiness.com comes to you from Nashville. That fact likely increases our bias towards believing our hometown not only is a great test market city, but is a great place to live and work, as well.

But if you’re beyond the concept stage and the backers on Kickstarter love you, where do you turn to get those orders in the hands of your backers? That was the dilemma Tom Gerhardt and Dan Provost and their company Studio Neat faced in 2010. They had to take a crash course in manufacturing options when their first product, a tripod mount and stand for smartphones called Glif, experienced massive Kickstarter success. That was the good news. The challenging news was their need to come up with 5,273 Glif tripods for their backers. Fast.

The conventional wisdom might have the story’s next chapter be them calling China or another country known for low cost and quick-turnaround manufacturing . Not so, say Tom, Dan and a growing number of web-savvy product developers. Working with U.S. manufacturers who have adapted to custom and short-run ways of manufacturing products, small companies like Studio Neat are finding ways to make it in the U.S.A. And that’s important to Tom and Dan.

Dan Provost shared with us why finding and working with a U.S. custom manufacturer helps Studio Neat.

Tom Gerhardt and Dan Provost, designers and founders of Studio Neat. (Photo: StudioNeat.com)

What is the purpose of custom manufacturing? In other words, why choose this option over others?

Custom (or short-run) manufacturing can mean many things, but it’s primary purpose is to produce a product at a smaller scale, like the one we (Studio Neat) operate at. This could mean using a manufacturing technique like 3D printing, finding “normal” manufacturers that are willing to do smaller runs or using an “in-between” service like Protomold. We chose short-run manufacturing out of necessity, as the quantities we have required it.

How did you learn of it? And about it?

We learned about these companies in the standard way: Google. The book Making It by Chris Lefteri was also tremendously helpful in learning about all types of manufacturing techniques.

Would you mind sharing insight into costs?

These vary quite a bit, job to job. A mold for injection molding can cost anywhere from a couple thousand to upwards of $20,000.

How did you find your manufacturer? And why did you choose them?

The first company we ever worked with, Premier Source in South Dakota, actually contacted us. They saw our Kickstarter project for the Glif (the iPhone tripod mount and adapter pictured above) and knew that we were looking for a manufacturer. They knew they had the capabilities we were looking for. We ended up getting about six quotes from different manufacturers, but Premier Source really “got” our project, so they seemed like the best fit.

Studio Neat’s popular stylus inspired by the shape and feel of a whiteboard marker, the Cosmonaut. (Photo: StudioNeat.com)

You’ve had several different projects—Glif, Cosmonaut, Neat Ice Kit—have you used the same manufacturer throughout?

We have continued to use Premier Source whenever we can, but often we will need to manufacture objects that differ from their capabilities, such as wood or metal production.

On their website’s product page for the Glif, Studio Neat includes a map showing where each part of the product is manufactured.

You have made a concerted effort to manufacture in the US. Why? Even though you hear, “It’s cheaper overseas,” what are some of the biggest advantages to doing it?

It’s much easier to communicate, visit the factories, etc. For some things, the price difference is negligible from doing it overseas. However, with our latest product, the Neat Ice Kit, there were a couple parts where it simply was not feasible to have them made stateside, so we had to move overseas.

What are your thoughts on 3D-printing and makerspaces? Have you ever used or considered using one? If you did consider it, but eventually decided against it, why?

When we were starting out we used Shapeways often for 3D printed prototypes, and it is a great service. We bought a Makerbot about a year ago and that has been very handy.

What are some of the difficulties you’ve faced in finding a manufacturer? And dealing with them once you have found one?

Finding and dealing with manufacturers is always tricky, and always a learning process. For the most part, the manufacturers we have found are able to do the lower quantities that we require, which is good. (On their website, the Studio Neat guys take a deep dive into all of the manufacturing decisions they made with Glif and Cosmonaut. It’s a must-read for anyone who has an idea for a product but has never taken a concept to production and through to retail.)

What advice would you give to other small business owners/designers looking for a custom or short-run manufacturing supplier?

Google is your friend. Also, don’t be afraid to ask other small business owners and designers who they are using. Once you contact a manufacturer, be up front about your expected quantities so you can start on the same page.

To learn more about the lessons Tom Gerhardt and Dan Provost learned by designing, manufacturing and selling the products of Sudio Neat, you can read their e-book, It will be Exhiliarating: Indie Capitalism and Design Entrepreneurship in the 21st Century.

(Illustration by Rex Hammock, drawn with a Cosmonaut Stylus, SmallBusiness.com)

Heavy Duty Hauling

Move By Bike

A Swedish company in the city of Malmo, Move By Bike calls itself the country’s most environmentally friendly trucking company in Sweden. Who’s going to disagree?

Caffeine-Fueled Coffee Service

Bicycle Coffee

While Bicycle Coffee has its Roastery & Cafe in Oakland, the coffee can be found at markets, cafes, restaurants and hotels throughout the San Francisco Bay area. “Our coffee is always fresh and always delivered by bicycle,” they say.

Bicycle-Churned Goodness

Peddler’s Creamery

There’s a long history of bicycle-powered ice cream vendors. But Peddler’s Creamery in Los Angeles takes the concept too the next level: bicycle churned dairy and non-dairy ice cream and frozen desserts. Organized as a “Benefit Corporation,” 5% of the company’s profits go to social and environmental causes.

A Self-Propelled Party

(photo: Carrie Sloan via Flickr)

Pedal Pub

Started in the Twin Cities of Minnesota by two partners who obtained the North American import rights to the Dutch-made bar-on-wheels, Pedal Pub now has 30 licensee companies it has helped to start and grow from coast-to-coast.

Tour de Music City

GreenFleet Bicycle Tours

Visitors from around the world flock to Music City to experience its musical roots and cowboy boots. And more and more of them are touring downtown Nashville by bicycle via GreenFleet Bicycle Tours, a business started by Austin Bauman.

What is crowdfunding?

(Crowdfunding, n. The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.)

In high school, you were probably forced to read his famous satire, Gulliver’s Travels, but you probably didn’t make the connection between crowdfunding and Jonathan Swift. In a lot of ways, Swift was the founding father of modern crowdfunding. Believing that the lower classes in Ireland would benefit greatly from microlending (or microfinancing), he helped set up the Irish Loan Fund, which dispersed small loans to individuals who lack credit experience and collateral, but could still be deemed “creditworthy.” The program was so successful that, by the 1800s, there were more than 300 microfinancing organizations throughout Ireland.

Microfinance continued to evolve through the nineteenth and twentieth centuries, eventually taking to the Internet with Kiva.org in 2005, but didn’t morph into the “crowdfunding” we know of today until 2009 when Kickstarter and other currently popular crowdfunding internet sites launched. Since then, the movement has exploded, with crowdfunding platforms providing $5.1 billion worth of support worldwide in 2013 (up from $2.7 billion in 2012 and $1.5 billion in 2011), according to Crowdmapped.com.

The three types of business-related crowdfunding

(Photo: On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups (JOBS) Act, enabling equity crowdfunding. Via: White House)

Crowdfunding, in one way or another, has been around since the earliest days of online communities. However, in most early instances, the funding had to do with raising donations for everything from walk-a-thons to helping individuals with medical or legal funds.

The success of the crowdfunding platform Kickstarter has greatly raised the visibility and possibility of business-related crowdfunding. But even Kickstarter started primarily as a venture for creative pursuits: artists and musicians raising money to finish projects. It has since grown into a system that also supports the development of products by craft makers, inventors and small businesses of all kinds. More recently, crowdfunding has become a means to raise equity capital with the passing of the JOBS Act in 2012. (We’ll explain in a moment.)

Here are three ways businesses typical crowdfund today:

1. Donation- and Reward-based crowdfunding: also known as “Project Backing”

Reward-based crowdfunding is largely used by musicians, filmmakers, inventors, free software developers, scientists and individuals looking to take on civic or social entrepreneurship projects. It usually follows one of two approaches:

• All-Or-Nothing (AON), which means only keeping the funds if the goal is met.
• Keep-It-All (KIA). hich entails keeping the funds no matter if the goal is met or not.

Reward-based crowdfunding, using the Kickstarter model, usually grants contributors a reward based upon how much money they give. A filmmaker, for example, may offer a free DVD for a $20 donation, a free DVD and t-shirt for a $40 donation, a VIP ticket to the premiere for $60, and a role as extra in the film AND a VIP ticket to the premiere for $100 and up. In other words, the public-broadcasting approach.

2) Credit-based crowdfunding

This essentially goes back to Jonathan Swift and his microcrediting efforts. But instead of receiving a small loan from one program or bank, crowd-based credit allows individuals and businesses to receive a series of small loans from a large group. Sites like LendingClub.com and Prosper.com are major hubs for those interested in credit-based crowdfunding.

3) Equity-based crowdfunding

Ok, here’s where it gets tricky. While at its base level, equity crowdfunding is easy to understand—investors provide money for a piece of your company—it’s not that simple. Thanks to the passing of the Jumpstart Our Business Startups (JOBS) Act in 2012, and the IPOnet, SEC Letter issued in 1996, there are three types of equity-based crowdfunding:

• Equity I. This allows an unlimited number of accredited investors to see private opportunities on password-protected websites. Equity I crowdfunding is best suited for companies who are looking to keep their fundraising campaigns private.
• Equity II. Thanks to Title II of the JOBS Act, entrepreneurs also have the option of publicly advertising investment opportunities to an unlimited number of accredited investors. AngelList, Crowdfunder and Early Shares are popular sites for businesses and individuals looking for equity-based crowdfudning.
• Equity III. This allows for anyone—accredited or not—to invest money in a company, product or project in return for equity. At the time of writing, Equity III crowdfunding is not yet legal in the US. It was included in Title III of the JOBS Act, but is still waiting approval. Most believe it will be legalized by the end of 2014.

Is it right for you?

(Photo: Yancey Strickler, co-founder of Kickstarter. Photo via Rex Hammock, SmallBusiness.com)

Crowdfunding is alluring. Pre-selling your product before manufacturing? What’s not to like about that? Raising equity without having to deal with traditional banks or investors? Sounds awesome. But before you get too ahead of yourself, you should consider a few things. Most importantly: Nothing is as easy as it sounds. Not every business or product is right for crowdfunding. And most projects fail. For every story you hear about a guy raising $50,000 for a bowl of potato salad, there are dozens of incredibly creative ideas that fail.

According to Crowdfund Insider, as of August 2013, Kickstarter campaigns have had a 44% success rate, and Indiegogo a meager 10% success rate. Meaning that there’s a stark difference between ideas or businesses that are right for crowdfunding and those that aren’t. But how do you know whether yours belongs to the “right for crowdfunding” or “stick to traditional ways of raising money” sets.

Ask yourself these questions:

• Is the crowdfunding world oversaturated with your product/project? Remember: There are a lot of businesses seeking financing from the masses. This means there are probably businesses/products/projects like yours already receiving funding. You simply need to do some research and find out how saturated the market is with products/projects like yours. Investors want unique; so make sure you’re giving it to them.
• How good is your story? Think of it this way: Monetary investment is much more likely when there’s emotional investment. Just like we’re drawn to movies that are “based on true story,” products or projects that carry a powerful, inspiring and/or engaging narrative behind them have a better chance of succeeding.
• Do you have a clear message and realistic goals? As Crowdfund Insider points out, “Unclear goals and a lack of concrete objectives are a death knell,” for small businesses seeking funding. So be specific and concise when describing who you are and what you do, and what you hope to achieve. Also be fair with your expectations. Everyone has huge aspirations with their business; don’t get carried away in the dream.
• Do you have a good system behind you, including a team and social media support? Look at the people around you. Your brand is more likely to be supported if you show it’s got a group of like-minded and equally passionate individuals behind it. It also helps to have a decent (and loyal) following on social media—aka people you can reach out to when selling/promoting.

Notable crowdfunding platforms

Worldwide, there are over 500 crowdfunding platforms. In the U.S., a sampling of platforms are:

1. Kickstarter: The 800 lb. platform for business-related reward crowdfunding. In March, 2014, it passed $1 billion in donations to projects.
2. Indiegogo. While Kickstarter specializes in donation-based crowdfunding for creative pursuits, Indiegogo allows it for anything—business, personal, creative.
3. Crowdfunder:. Equity-based crowdfunding that claims to have the largest network of accredited investors.
4. Crowdrise: A donation-based crowdfunding site for non-profits, causes and charities.
5. Lending Club: One of the oldest and most successful credit-based crowdfunding sites.
6. Invested.in: A “white label” platform that allows you to create your own crowdfunding feature on your own website.

Crowdfunding resources

• The Ultimate Crowdfunding Guide
• The Kickstarter Creator Handbook
• The Indiegogo Playbook
• RocketHub Success School
• The Crowdfunding Bible (pdf)

Note: As with any decision regarding finance or money, always consult your personal financial and legal advisors before making any decisions. Crowdfunding should not be entered into without plenty of research and consideration.

(Featured Photo: Pablo Manriquez via Flick)

•  5.7 million people have pledged money to projects.
• Over half of the funds pledges, representing $500 million, were made during the last 12 months.
• 1.6 million+ users have backed more than one project
• Nearly 16,000 are active repeat users who each have contributed to more than 50 projects.

See more stats and milestones on Kickstarter.com.

Have you ever made a pledge to back a product on Kickstarter? Have you ever funded a project there? Good experience, or bad, let others know in the comments below.

The west-center Illinois corn processor’s story, as reported by Dan Charles on NPR’s Morning Edition, explains how a visit with potential customers years ago helped the company’s founder, Lynn Clarkson, discover a niche market opportunity that today provides his company a fast-growing, international business: providing corn for companies that require “non genetically modified” ingredients, or “GMO-free.”

For Clarkson, “GMO-free” is not a “cause,” but a market need he discovered while trying to solve a problem he discovered when customers told him about their need for “consistency in supply.” He proposed a solution to customers that at the time may have appeared to be a radical zag from the zig of traditional corn processors: “(providing) a single variety; a single hybrid, delivered at any one time, so you’re not mixing different cooking characteristics.”

That solution, and the approach it required the company to follow, provided Clarkson Grain with a unique niche position as the market for non-GMO corn emerged. And it provides a great zig-zag lesson worth listening to.

Text of the story: How American Food Companies Go GMO-Free In A GMO World (NPR.org)

Listen to the story:

(Featured photo: Darin via Flickr)

Update: While the inventors who used the Quirky platform are still around, the company, Quirky filed for bankruptcy in September 2o15. We’ve decided to keep this article archived as some of the products are available via other channels.

We love our technology tools but hate the wires that supply them power and connect them to the grid. We’ve written about ways to organize wires and cords and even have a Pinterest board dedicated to the  topic.

And today, we salute the men and women out on the front lines in the War of the Wires. The “inventor community” of Quirky.com are like the Seal Team 6 in the Combat Against Cords. We can’t wait to see what they come up with next that top these:

1. Cordies Cable Management

(Photo via Quirky)

To defy gravity and prevent your unplugged cables from constantly falling off your desk you will need Cordies Cable Management. Measurement: 3.25” L x 3.5” W x 2” H (82.55mm L x 88.9mm W x 50.8mm H).

(Price: $9.99)

2. PowerCurl

(Photo via Quirky)

The PowerCurl isn’t just great for the office, it can also provide simple cable organization to a household of Macbook users. Measurements: 45W: 11- and 13-inch MacBook Air 60W : MacBook, 13-inch MacBook Pro 85W: 15- and 17-inch MacBook Pro, 15-inch MacBook Pro with Retina display.

(Price: $7.99)

3. Contort

(Photo via Qirky)

The Contort HUB is a flexible four-port USB that keeps cords organized and better protects USB transfers from damages. Measurements: 5.6″ L x 1.3″ W x .9″ H (142mm L x 34mm W x 24mm H).

(Price: $24.99)

4. ContortPower

(Photo via Quirky)

The ContortPower is a portable two-in-one USB/AC adapter that organizes cords. Measurements: 3.2″ L x 5″ W x 2.3″D (82mm L x 132.5mm W x 58.5mm D).

(Price: $24.99)

5. Wrapster

(Photo via Quirky)

Wrapster is the simple solution to finally wrangling your earbud wire tangle. Measurements: 4.9″ H x 2.4″ W x .7″ D (125mm H x 60mm W x 18mm D) Fits iPhone 5/5s.

(Price: $5.99)

6. Folio

(Photos via Quirky)

The Folio is an iphone 5 case that gives wire organization and even more functionality to your smartphone. The case’s three outer leather slots serve as a wallet while inside is a cord management compartment for earbud headphones and miscellaneous compartment storage for things like gum or loose change. Measurements: 4.9″ H x 2.4″ W x .7″ D (125mm H x 60mm W x 18mm D) Fits iPhone 5/5s.

(Price: $39.99)

7. PivotPower

(Photo via Quirky)

The PivotPower is a flexible surge-protecting power strip meant to make room for every plug in your workspace arsenal. No more bulky plugs and adapters blocking other power outlets, each outlet can be pivoted and flexed to fit your electronic needs.

(Price: $29.99)

8. Prop Power Pro

(Photo via Quirky)

The Prop Power Pro is a tougher version of the original Prop Power wrap-around extension cord. Its rugged versatility means you now have an extension cord available to you anywhere. Measurements: Cord: 9′ L (2743mm) AC head: 4.4″” L x 2″” W x 1.3″” D (114mm x 50mm x 33mm)

(Price: $24.99)