Taking LicenseIt pays to do your homework before signing a licensing agreement.
ByDon Debelak•
Opinions expressed by Entrepreneur contributors are their own.
The Entrepreneur:electrical contractor Kevin O'Rourke, 42
Product Description:The ElectraTrac is an extension cord with electric plugs at every eight feet along its length. O'Rourke originally had the idea back in 1997 as a better cord for holiday lights. Instead of using numerous extension cords or having all the lights go into one plug, the ElectraTrac can be used to plug the lights in at various points along the cord. Customers include consumers, creators of lighting shows, and electrical and construction contractors.
Startup:At least $50,000 in 2001, when the idea was licensed to Reno, Nevada-based Nextep Inc., a consumer marketing company that acquires a wide range of consumer products that can be sold to major retailers. Costs prior to licensing the product included a patent, several rounds of prototypes, an extensive business plan, and some limited production for market testing.
