This is the age old question of what does time to market actually cost. If you miss the market totally I would say the costs are extrememly high. On the flipside the value of speed to market is even higher.

If you can crack this nut I think you are on to a very profitable venture. edit

I have been a consultant in the software field for a number of years.

I made most of my money from large corporations that got bypassed by tiny startups and then realized that they needed to catch up. So, they would pick up the phone, call the consulting company that I worked for, and tell us what they wanted to do and how quickly they needed it done.

We'd then have to put a massive number of people on the project and work around the clock to meet their ridiculous deadlines. Often, they wanted very complete and sophisticated applicatons (which would typically be 2 year projects) developed in 12 months.

They would probably have been better off to have just bought the startups that they were trying to catch up to, because by the time they caught up and rolled out the application that we developed, the startup was another light year ahead of them.

Since you ask the question, I am guessing that you either: a) have an idea that would work in a big company and are thinking about whether to pitch them now or to develop yourself and then pitch, or b) you are thinking about getting into new product development project management. I'd be curious as to which it is if you'd like to share.

I can say with certainty that there is great value in quick time-to-market for large companies.

Although, as a disclaimer, this is EXACTLY the reason that I left the consulting field. While the money was great, working around the clock took a great toll on my health, my family and my personal well-being. Which, is why I decided to leave and do my own thing. I'm now much healthier, happier and luckily, still married! edit

techjim.... Thanks for the advice.

Without getting into too much detail I have an idea that would potentially revolutionize the retail environment. I can't decide whether to pitch it to one of the local retailers (Target or BestBuy) or try to start my own business with hopes of selling out once it is developed.

Having worked for a number of large companies I feel that I could put together a great team and develop my idea faster and more cost effectively.

Are large companies like Target and BestBuy inclined to buy ideas from a guy like me, or would they prefer an idea that has already been executed and is ready for their use? edit

Is this a sell-to product/service that the retailer will use or is it a sell-through product, something they will resell to consumers?

Having worked with the largest retail HQs, I would humbly suggest that you develop the idea yourself.

Get your feet wet by first pitching some of the smaller to mid-sized chains before you approach the behemoths like Target or Best Buy. They can take awhile to convince anyways. Ultimately you need to work out all the hiccups and kinks before you go see them.

- OR -

If you feel you have all your ducks in a row PLUS everything required to deal with the largest chains, then perhaps find a partner. Whether that's one of the manufacturer rep agencies that have a pre-existing relationships at the chain or maybe a non-competitive but complementary product/service company that has a major accounts team.

Just remember that sometimes the biggest contract...like landing the Wal-Mart account is NOT always a great thing...unless you're truly prepared. The Vendor Villages surrounding the Bentonville, Arkansas area have seen many companies that were not ready for the logistical demands or simply did not understand the economics of working with a mass merchandiser. Stuff like lower profit margins or many other concessions (training, product redesigns, etc.)

Then again...the big chains have been known to work with the one man band but you have to be ultra-careful that your concept is not...well...let's say swallowed up whole by the mega-retail beast or that they ask for exclusivity.

Great to be the official fill-in-the-blank supplier for Best Buy but will you be able to take your concept to Target, Home Depot or Safeway?

Just my two cents. The retailing world is so fraught with execution problems that it needs fresh ideas and solutions. I say if you have a great concept, do lots of upfront research first, if the numbers work and you're still excited then go ahead and build the better mousetrap. Good luck! edit

These are great topics...to your first question, I can tell you through experience that you can indeed develop and launch products faster with smaller, more nimble companies. However, you need to know were to find resources outside that can fill in gaps as needed. Capital is a limiting factor as well. Sometimes you have to make some assessments as best you can for voice of customer, rather than investing in focus groups. You are going to test market on the fly...guess well my friend.

To your second question, I just departed a venture I started two years ago in the consumer market. Demand generation I found to be the most difficult part of consumer products. There are reps available to take you anywhere you want to go. I agree with Catapult...you need to really think through the your channel strategy. Bigger is not always better, at least not right away. edit