Forums: Discussions for entrepreneurs and small business.

Hi All:

Three years ago, I decided to go forward with a twenty year old idea that I had and hired a company to develop it.  (Am I allowed to mention the company name?).  Anyway, about a year ago, with what they called a "Virtual Reality Prototype," it was presented to at least two companies that I know off.  This was verified because I had to fax signed permission letters to them prior to the presentations.

After that, I received three updates within several months of each other and then, no updates until I called them about a month ago.  I do know that it  sometimes takes many presentations before any manufacturer will pick up on a product regardless of how "dynamite" of an idea the originator might think it is.  After a lengthy conversation with the director of licensing, I decided to leave it with them.

I have invested over $12,000 into the project.  It would have been more except that at the end of the prototype development, the company offered me a deal whereby they retained 20% of the product rights for me not having to invest any more into it.

I have an urge to go back and see about buying them out of the 20% share and going forward with my own efforts to manufacture and sell the item.  With what is being sold over the internet (primarily ebay) there is a possibility I could do very well with it.  Without getting into details of the product, I liken it to the "Pet Rock" or the "Inflation Hedge" - a gag gift, conversation piece for the "person who has everything."  I think it`s a dynamite idea.

I welcome anyone`s input on my thoughts about going it alone.  As is the case with many others, funding is a major source of my hesitation.

(BTW, I have another idea that is now over 25 years old and no one has brought that product to the market, either. (This product would be best marketed to major sports teams - NFL, NHL, NBA, etc.)

Regards,

Thanks, guys.  Just my insecurities showing through.  I had already decided that I will be contacting them first thing Monday morning.  Your encouragement is great.

CraigL: Much appreciated.

Jeff:  I went over to AOL.com but did not know how to get to "Westnova, username".  As a "fledgling interpreneur" there is still much I have to learn about using the internet.

Thanks, Choc

Update:

Placed a telephone call to Davison Engineering (Pa) and my contact is out for the day.  Left a message so he should call me back tomorrow although I am not waiting and will be placing a call as soon as I get up in the AM.  I normally get up at 5 so I can call and leave a message or wait till they get to work (6 my time, 9 theirs) first thing.  Try both.

I had lunch today with my friend who owns the Strike Force Tour and he absolutely loved the idea and is now thinking about investing in it.  He also told me that he could help me line up some investors if need be (or at least give me an introduction so I can talk to them).  My younger sister travels to Taiwan regularly for her own manufacturing company so she can find out manufacturing costs for me.

Will keep you posted.  Thanks again for your encouragement and "kicks-in-the-butt".

Regards, Choc

Called at 6 AM Phx time left mesg for call back.  Went to visit my very good friend who did put some money into the idea when I first had contacted Davison.  Gave him an update over coffee and doughnuts at his house.As I walked in the door at my house, got the call back from Davison.

Director of Licensing and I had a great conversation. In summary:

1) Product is mine and I am free to see if I can find a source different from them. Just be careful not to present it to companies they have already presented to.

2) They will continue to present the product even though I am presenting it at the same time.  Keep each other informed so we do not duplicate efforts. If they find someone and I approve of it, then they have the 20% stake; if I find someone by myself, I do not have to give them 20%.

3) If I can find someone to manufacture and get Davison involved in the final negotiations (because of their experience negotiating contracts) they will expect their 20% stake to be honored.

4) In my dealings with Davison, there is no more cash needed from my side for them to keep trying to find a manufacturer; but, if I`m doing it on my own, I do have some outlay.

5) The are very flexible.

I must now spend a little bit of time to develop my plan of action.

Regards, Choc

Okay, I did the best I could figure out and this is what I got.  Still doesn`t make sense to me.  All the entries are fairly old.  Is this what you wanted us to see or is AOL still screwing up?

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