It’s all about relationships
The best approach to licensing by a novice inventor is for the parties (licensor and licensee) to discuss the agreement and come to an understanding of what they want and need, without attorneys. Work toward building a stronger relationship as you discuss licensing objectives. Remember that your licensees will be your partners for years to come. Your goal is to have mutually attainable goals.

From “From Patent to Profit,” by Bob DeMatteis, page 252.

Timing matters
Virtually any type of product can be licensed. What varies is the stage at which a company will license the product. You may be able to strike an agreement quickly if you are already successfully producing and selling the product. You may be able to license a product with just a prototype if it meets a clear market need in a convincing way. In some cases, you may even be able to license an idea in the concept stage if the product has breakthrough potential in a major market.

From “Let’s Make a Deal” by Don Debelak
Source

Some links from the Oklahoma Inventor’s Assistance Service to help entrepreneurs locate manufacturers:

• Thomas Register of American Manufacturers
• CompaniesOnline Search
• Harris Info Online
• TechSavvy.com
• Industry Search
• MRO Explorer Search
• Yellow Pages Online
• Trade Easy

Defining your IP
In The Portable MBA in Entrepreneurship, William D. Bygrave recommends that you ask the following questions when defining your intellectual property:

• Is it more than one patent, just one patent, or only a part of one patent?
• Is it just the trademark, or the entire corporate image—names, advertising, and promotional scheme and graphics?
• If it concerns copyright, does it cover just the right to copy a book or other printed material in the same print form, or does it include any of the following rights?
• Translation into another language
• Adaptation for stage, screen, or video
• Creation of derivative works
• Merchandising characters and events on T-shirts and toys?
• If it involves know-how or trade secrets, where are they defined?

Bygrave, William D. The Portable MBA in Entrepreneurship. New York: John Wiley & Sons, 1994.