Inventive Ideas Inc
Don’t Borrow Money For Your Invention by Carrie Jeske

Don’t Borrow Money

For An Invention Product Idea by Carrie Jeske

I’m amazed how many email offers I get to borrow money.   It seems like the good and the bad are in favor of it.  TV personalities, consultant, scammers, ripoff artists and sound financial institutions all love the debt game.     To the independent inventor, I say BEWARE.    Don’t borrow money for an invention product idea.

Borrowing money too soon makes you and your idea a slave to debt.  It puts unnecessary pressure on the invention sequence process and puts you and your family at financial risk.

Instead, guard your money like a junk yard dog.    Every dollar you spend should be strategically understood and calculated for maximum return.   Don’t fall victim to the “We love your idea, pay us money” strategy.    It’s not service providers you need to convince.  It’s real consumers who buy products with real money.  Test, test, test.    There will be more blogs and videos on the best testing methods for new products, by Carrie Jeske.  Leveraging testing will make a world of difference in deciding to fish or cut bait on a new product idea.   With the internet and great direct sales strategies so accessible, it makes sense to use them.

This article is about debt.   Here’s the latest advertisement to grace my network.  Steer clear of:

“How To Finance Your Invention Idea”

Whether you need $10,000 or $500,000, these companies offer innovative loan solutions

that go beyond the typical secured equity loan.

Beyond the typical secured equity huh?  This scares me.   It sounds like some high interest, easy to qualify for, ruin my finances option to me.    Maybe I’m too cynical.    I’ve taken too many calls from nice independent inventors who’ve spent $50,000 to $150,000 on products someone should have told them to drop from the start.   Some product ideas are not viable.    If a product is viable, there are low cost, high return strategies to leverage.

Back to debt.


Forbes offers 4 better alternatives that I agree with.

  1. Get help from your niche
  2. Find a grant. Try or just search Google using keywords “ xyz subject, grants”
  3. Enter a contest
  4. Crowdfunding


I’m disappointed that Inc encourages debt in their article.    Instead they offer, “10 Ways to Finance Your Business” that I will comment on.

1. Factoring 

MAYBE. This is a better move for a product with existing sales and account receivable then for a new start up. What I like about it, is it keeps the focus on sales.  If you can’t sell, then there’s a problem.   If you do sell, factoring can be a way to leverage your cash to buy more inventory.

2. Get A Bank Loan

NO. Unless your business is established and we’re talking a credit line.  It’s too high risk for the early stage companies.   Why strap yourself to debt when there are so many low cost or free ways to test the viability of your product before investing so much capital. Carrie Jeske recommends you avoid this option.

3. Use A Credit Card

To quote a song, “NO to the NO, to the NO! NO! NO!” Credit card debt is the highest interest rate.   Many people end up spending more time floating balances from one zero interest card to another, all the while increasing liabilities and not selling the actual product.  Sales is hard for everyone, but if consumers won’t buy it on a small scale, why do you think they will on a large scale?   The small start is actually the best.  It gives you a chance to test consumer response to your product, graphics, name, features, benefits and value proposition.   Don’t despise small beginnings.   Leverage them!

4. Tap Into Your 401(k)

HELL NO.    Listen to me now and hear me later. DO NOT DO THIS.   Doing so is a very foolish decision, indeed.You’ll pay a big penalty and risk your financial stability, which forces bad decision making.  Trust me, I know.   If there’s a mistake made, I’ve experienced it.   The school of Hard Knocks has very good teachers.   It took me 10 years to recover.

5. Try Crowdfunding

MAYBE.  As long as you realize that you still have to market your campaign and as long as your realize your are risking competition by putting your product on the public domain, then go for it.   My only other concern is that once your product funds, don’t get the “big head” syndrome.  Your goal is to license.  When the billion dollar company comes knocking, answer the door, take the deal and say thank you.  🙂    Enjoy the extra money and spend your time inventing something else.    Oh, and don’t spend it all in one place. The more money you have, the more important sound financial practices are.

Too many people and businesses make money on a product idea, then spend it all thinking it’s easy to do again.  It’s not.  When you do strike it rich, save your next egg and keep working low cost, high return strategies.  It’s not smart to build up a hefty operational infrastructures based more on past success then future potential.

6. Pledge Some of Your Future Earnings

MAYBE. If you can.  You still need a good partner.

7.  Attract An Angel Investor

YES. Getting a shark or an angel is often a good idea. Make sure you get a long and make sure you agree on people and process.

8. Secure An SBA Loan

NO. Not a good choice. SBA loans stay with you for life.  The last thing you need when launching a product, is the government coming after you.

9. Raise Money From Your Family & Friends

YES. Always a good plan.  Your friends and family are usually banking on you, more then the product.  They love you.  If they don’t, it may raise concerns from people who don’t know you.

10. Get A Microloan

MAYBE. If it’s a grant or donation, that would be good, but I’m told many micro loans have high interest rates.   If that’s the case, it’s really just bad debt by a different name.

Test Product Viability. Start Small.

Will people actually buy it?   Here’s my idea for how to launch your invention idea with our borrowing money.   Every inventor today needs a free YouTube channel.

  1. License it. Use a hand made prototype and home made demo video to get people interested.    Post it on Youtube in an “unlisted” setting and send Carrie Jeske a link to your demo video.
  2. Go On A TV Show. There are many inventor tv shows now days that can offer you visibility for your idea and/or a path to riches.  Just remember, most of these shows have an entertainment goal, not a make money on products goal.   Be wise.  Be cautiously optimistic.   Enjoy the process and learn what you can.   Enhance your contact database.
  3. Make a 3D Printed Prototype – use the public library, a VoTech school or a product designer to make a high quality, visually appealing prototype.
  4. Make a Facebook Product page – then invest $50 to market your page to different niche groups. Ask for feedback and see what people say.
  5. PayPal – sign up for PayPal for free and start testing pre-sales. If no one buys your product, maybe you should re-think your pitch.  If people do buy it, contact me and let’s see if we can leverage it into something more.

There are many other ways to test your product and gain interest from experts and consumers.

Don’t go into debt.    Focus on sales and marketing, making sure you are explaining the problem your product solves, as well as the benefits and value of the item.   Sell, sell, sell.    If people are not willing to give you a pre-order, is there “I love your product” comment really valid?     Similarly, if you can’t sell your product on a small, debt free scale, is it plausible to believe that going into debt is your answer?

Guard your money like a junk yard dog.  When you do spend it, make sure you’re getting the highest possible return for your time, effort and money.   That’s not always an easy thing to access, but I guarantee that asking yourself the question, will spare you mistakes along the way. Onward & Upward,

Carrie Jeske

So don't borrow money for your invention. Also the best way to invent is with low cost, high return strategy.