ZorinPump Weblog...
One
of the most frequent questions that I am asked by
people is: how did you actually get your product to
market?
Well you won't be surprised to find out that it hasn't
all been plain sailing! The process of product commercialisation
(or 'productisation' as I call it) is generally not
a quick, easy or cheap activity and there are many
dangers and pitfalls to avoid.
Here's
how it happened...
One evening, in the early stages of my final-year
as a student studying Product Design at Bournemouth
University, I was sat in my room pondering the question
of how to address a design brief that I had written
to come up with a new and better design of bicycle
pump. As a keen cyclist I knew that a great solution
would be achieving track-pump performance with the
mobility of a mini (or hand held) pump. After a couple
of drinks and the inspiration of my bike that was
in pieces on the floor, the innovation muse paid me
a visit and the idea struck….build the pump
into the seat post and use the saddle as a handle.
Now
the clock was ticking, with only six months to turn
the project around from having a basic idea to creating
the first working prototype. I followed the product
design and development process as taught by the University
throughout the previous three years of study. This
included:
•
Clarification of the initial design idea
• Further concept generation
• Detailed design and development
• In the workshops: modeling, testing, refining
The
first working seatpost-pump prototype was presented
at the annual University Design Festival. When it
generated so much interest and someone offering me
£50 for it, I began to wonder if this as yet
unnamed but novel idea was in fact a marketable product,
something that I could sell to a few touring and recreational
cyclists. Little did I know then where this innovative
pump would take me!
The
seatpost-pump is a combination of a seat-post and
powerful floor-pump. The pump mechanism is hidden
inside the seat-post and uses this as the outer wall
of the pump. The pump is always at hand, protected
from the elements and hidden from thieves, and can
inflate a tyre in as little as a dozen strokes. An
extra bonus is that you can stand up while you do
this using the saddle as your handle.
Three
years after the Design Festival, and the first Dahon
bike fitted with my seatpost-pump as standard equipment
rolled off the production line in Shenzhen, China.
Dahon are the world leaders in manufacturing and distributing
folding bicycles, and since they began in 1982 have
sold almost 2 million worldwide. Dahon bikes are currently
sold in over 30 countries.
So
how did I take this final year student project and
turn it into a global product? Apart from the viability
of the pump itself, my success can probably be accredited
to a combination of my perseverance, good decision
making, surrounding myself with experienced advisors,
and a little bit of luck.
One
of the first steps towards becoming a creditable business
was to set up a company. After some guidance from
my banks’ business manager and an accountant
I was aware that initially I needed to do prepare
a brief business plan, prove my personal income streams
and come up with a name for the business. For those
of you still pondering on the name 'Zorin', it is
perhaps best known for featuring in my favourite James
Bond movie - 'A View to a Kill’ starring Christopher
Walken as 'Max Zorin'.
People do recognise the name, if not immediately identifying
it’s origin they say things like ‘I’ve
heard of you before’. Although it was never
the intention to copy the Zorin name (and there are
several companies around the world that use Zorin
in one way or another), it has turned out to be one
of the stronger parts of the project.
I
understood that Intellectual Property (IP) was also
going to be an important factor within the business.
My University course included a brief unit on IP in
the final year, touching on Patents, registered designs
and trade marks, but I didn’t really appreciate
how relevant it would be to my future endeavours!
For more information about Intellectual Property,
visit the UK IPO website (click
here).
I
was very fortunate to have taken good advice from
various people, one of which was a former colleague,
Geoff Bell. He runs his own product design and commercialisation
business, ‘SaxonKing’, and he has taken
several products from concept to manufacture. He therefore
provided invaluable experience and has been an enthusiastic
supporter throughout the evolution of the Zorin business.
Initially
we discussed the issue of intellectual property and
created a development plan, which included the application
for a UK patent.
Following
a recommendation, I contacted a Patent Attorney in
London for help with protecting my idea. Although
I could have saved myself a lot of money by processing
the Patent application on my own, I'm a big advocator
of taking the best advice you can afford, especially
with respect to Intellectual Property.
Having
discussed my position with the Patent Attorney, I
realised that to protect my seatpost-pump (now known
as the ‘ZorinPump’) from potential copying,
IP would need to be extended to cover various countries
in the Far East as well as the United States and Europe.
The Attorney also suggested patent applicant’s
insurance, as this offered additional protection during
the early stages of the project. Patent enforcement
insurance continues this once the patent is granted.
Be careful about spending money on IP until you have
conducted a comprehensive, worldwide patent search
to see if someone else has already filed a patent
for the same idea. It is very easy to spend money
on expensive prototypes and marketing without knowing
the full story. Rule number one is to do your homework.
If
you are submitting a British patent application, the
advice the UK Intellectual Property Office (UK IPO)
gives is to include as much detail about anything
and everything you can possibly think of in the description,
as once it has been filed nothing can be added. However
in the claims, keep your wording as generic as possible,
as nothing can be taken out of claims after it has
been granted, and you want as much scope in the claims
as possible, for as much protection as possible. If,
for any reason your claims prove to be too generalised,
then features can be covered in more detail to make
your invention new and inventive (if feasible).
This
is where a good Patent Attorney can be very helpful,
as they know how to both provide maximum detail and
then understate in the claims, and should be able
to give guidance in that direction.
Another
issue of significance is that of funding. An agonising
factor for me, and a common problem facing people
starting off. For the first few months I agonised
with the question of how to finance the development
process. IP protection and second stage product design
and development were substantial yet necessary overheads
and I was determined to still retain maximum ownership
of the product. Although the allure of an injection
of money from either Venture Capitalist or Business
Angel was tempting, I struggled on independently,
sometimes working in two jobs, so that I would remain
the sole proprietor of his product. As a recent graduate
from University, most of my friends at that time were
starting jobs with the likes of Jaguar Cars and Dyson.
In order to guarantee the bank business loan that
I took, and to afford me the time to develop the pump
project I needed a part-time job and ended up working
as a part-time white-van-man delivering butchers supplies
around East London!
If
I had taken venture capital for developing the ZorinPump
(which was offered at one point) the financial burden
would have been considerably eased and the project
timing reduced, yet I would have had sacrificed equity
in the business. In order to generate a cash injection
of £20,000 the deal was for a 49% equity share
for the investor. I thought this was unreasonable
so continued to 'go-it-alone'.
Fortunately
for me, a proportion of funding came from being awarded
a Department of Trade and Industry 'Smart' award.
This was the DTI’s package of support providing
grants to help individuals and Small to Middle Size
Enterprises (SME’s) review their use of technology,
access technology, and research and develop technologically
innovative products and processes. Just what I needed.
In
order to acquire the funding, I had to prove ZorinPump’s
commercial potential. After a meeting with Business
Link advisors, I went away with various forms to be
completed, and the knowledge that I would have to
provide cash flow forecasts, personal details, project
partner information and other such details.
As
part of the smart grant application a large bicycle
/ bicycle accessory manufacturer and distributor had
to be approached to identify and prove demand for
the product. The product presentation was a success
and the product manager identified a number of opportunities
for the pump to be distributed within the UK and possibly
Europe.
When
I heard from the DTI's Small Business Service (SBS)
that my award had been granted, it enabled the project
to really gain momentum. It amounted to 50% of the
finance required for IP and product development and
would see the pump through to being nearly ready for
production. I generated the other 50% of finance through
an extended business bank loan.
The
first university prototype needed development in some
key areas: integrated air hose, folding foot stand,
air-flow, valves and ergonomics, to name but a few.
These were nearly all features that were protected
in due course with IP.
The pump at this stage was nowhere near production
ready. Although it showed how the concept worked it
would never generate commercial orders. Having a prototype
that is ready for production makes it much easier
to sell the concept to a potential manufacturer or
even to source quotes on production tooling had we
gone into production ourselves.
This
had been learnt at the early meetings with potential
retail and distribution partners, where it had become
clear that before an order was placed, they would
need to see a product with the correct feature content,
materials, logos and packaging etc. This is another
example of where I recognised invaluable advice and
then proceeded to act upon it, shaping my decisions
and plan of action on what I was being told by people
whose knowledge and advice had a proven track record.
Once
again providence was kind to me when Geoff Bell introduced
me to Peter and Phil at DesTech (UK) Ltd. They took
the design and development of the pump through to
the next stage. They were also Smart Grant winners
themselves (in fact it was they that introduced me
to the scheme). Their day to day service is one where
they conduct testing on domestic appliances and leisure
products before they go on sale, including destructive
testing where they get to blow things up! And they
stayed true to form with the destruction of several
bicycle inner tubes during the pump testing phase.
Good work chaps!
Within
a few months DesTech had finished the ZorinPump Mk.2
prototypes. They had all the new features built in
and were being used for testing inflation rates, pressure
capacity and so on.
Prior
to this I had with the help of a friend designed a
website for the ZorinPump. By the time the ZorinPump
Mk.2 was completed people were already emailing the
site to ask when and where the pumps would be available.
I made a point of not launching the site until our
patent application had been filed. In the UK, if you
publically disclose your invention without a patent
application in place then it will prevent you from
gaining an enforceable patent in the future.
Now
a new question arose. Could a small number of the
pumps be manufactured through conventional batch production
in the UK? This would allow a few to go out to market
for testing and evaluation. However fabricating the
plastic components was the problem. Low volume injection
moulding was not financially viable and design modification
was necessary to make the components suitable for
CNC machining. So disappointingly despite the early
demand the answer had to be no.
Once
the prototypes were functionally correct and performed
as required with the right technical feature content,
the next aspect to examine was aesthetics and identifying
production materials. This would be necessary before
being able to secure orders for the product. Generating
the right look for the pump was essential. The market
had been identified as being very brand orientated
and visual appearance would be vital if the pump was
going to hold any appeal. Also, a conventional seat-post
needed to be sourced and incorporated, so that manufacturing
drawings could be drafted.
The
seat posts were eventually found for the pre-production
prototypes in Italy from a leading seat-post manufacturer.
This involved a visit to them, which also helped to
forge relationships with people there.
As
the completion of the ZorinPump Mk.3 neared, the next
stage was investigated. I was delighted with the look
of the pump. It was both visually impressive, integrated
with superb user-friendly features. Once the samples
were ready, production quotes could be sourced, should
the best route appear to be volume producing them
ourselves. However, a more viable option, on careful
consideration would be to start approaching established
bicycle and bicycle accessory manufacturers who might
be interested in taking the pump into their range.
Another market that was identified was the after sales
market or retrofit, this would probably mean a larger
profit on all units sold. The bicycle and bicycle
accessory manufacturer that had been approached for
advice previously had expressed an interest in seeing
the final retail version. This would be necessary
before any orders were placed.
One
option suggested by the business advisor at the bank,
was for me to look into the ‘small-firms loan
guarantee system’ SFLG. This is a joint venture
between the UK DTI and approved lenders. Loans between
£5,000 and £250,000 provided for companies
with a trading record of less than five years. It
is aimed at helping SME’s with a viable business
plan, but lacking security. The DTI leave the commercial
decision making process to the bankers, as they do
not lend the money. They do provide 75% of the security
on acceptance by them of the application. The major
drawback in this instance, was that significant demand
for the product would need to be shown, inevitably
needing more press and media coverage before the pump
was actually on sale.
Once
the Mk.3 ZorinPump was finished, and after some publicity
shots were taken for promotional material, the potential
of volume production was investigated. Initial estimates
looked as if £70,000 would be needed to set
up production in the UK. This cost could have been
reduced slightly in eastern Europe, but the most cost
effective place was identified as the far-east, where
it would be around 10% of that figure.
Despite
the savings in revenue, there would have been no representative
to oversee that the production process was being managed
efficiently and to trouble shoot any problems. An
independent quality control partner was one option,
but this would have inevitably added to each unit
cost.
As
this important point was pondered and the ever present
struggle of funding was probed Destech and I forged
ahead in producing prototypes. It had become clear
early on in the process of bringing the pump to market,
when meeting retailers and distributors that before
they would commit to placing an order, they would
need to see a product with the correct feature content,
materials, logos, packaging and so on. For a batch
production of 15, they cost £250 each, a pretty
expensive bicycle pump!
On
completion of the production drawings by Destech,
I could source production quotes for the plastic injection-moulded
parts from various companies, both in and outside
the UK. I discovered many variants would effect the
production cost. If a ‘family’ tool could
be used this would bring down the cost considerably
as would the manufacture of the tool being outsourced
to China or Taiwan, or even opting for a softer mould
tool, this would only be suitable for a smaller production
run.
At
last it looked as if all of the hard work that had
gone into the pump was about to come to fruition.
When presented with the prototypes, a British bicycle
and accessory distribution company, with whom I had
been liasing for a year or so, stated they would be
happy to commit to a defined number of units for the
aftermarket or retrofit, as long as there would be
secure delivery dates.
However,
the project was about to take an even more significant
turn. In February 2004 I received an email from Josh
Hon, working at Dahon’s research and development
labs in Taipei. At virtually the same time the Design
Museum in London contacted me, wanting to include
the ZorinPump in an exhibition showcasing design ingenuity
and innovation, sponsored by Sir Terence Conran.
Dahon
quickly identified the ZorinPump as having world-wide
market appeal. Throughout 2004 the company undertook
a process of due diligence on the pump which involved
evaluating the product for volume production, judging
compatibility with Dahon bicycles and most importantly
researching the intellectual property situation. By
the end of the year the project had received the green
light and the first Dahon-ZorinPump was built under
the 'Biologic' brand and ready for launch to the bicycle
trade at the Taipei International Bike show. I was
invited to the show by Dahon to be involved with the
launch, to make presentations and meet some of the
world’s largest bicycle and accessory buyers.
With
a commercial contract agreed and exchanged with Dahon,
which granted an exclusive, world-wide license for
the manufacture and distribution of ZorinPumps, production
began in late 2005 and by March 2006 the first Dahon
bikes with ZorinPumps fitted as standard were arriving
in countries around the world.
With
six months presence in the market place to prove the
ability of the product, Dahon added the ZorinPump
as original equipment in the majority of their bicycle
range and have agreed terms with other manufacturers
to see pumps built into other bikes as well. A new
aftermarket version of the pump has also become available
for cyclists to retro-fit to their bikes.
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