Forums: Discussions for entrepreneurs and small business.

I am looking for help in finding a partner for a upcoming infommercial that we are doing.  We are a successfull company with a very successfull product, however we did not realize how much money we would have to raise for air time or production of a 60 sec. spot.  If anyone has any advise for quick investors, please advise.  Thanks in advance to everyone.

 

 

Trent Rousey

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Trent Rousey
President - 3R Products, Inc.

A lot of people seem to forget that venture capitalists and investors aren`t all that interested in starting a business. They`re interested in making money.

People want to approach an investor, saying, "I don`t have enough money to sell my products."

Instead, it should be, "I`m getting too many orders and don`t have enough money to sell MORE products."


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Craig Landes
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Defining the undefinable. "There are 10 kinds of people in the world---those who understand binary numbers and those who don`t." - Unknown

International Society of Curmudgeons

Craig,  That was kinda my point by starting out by saying that my company and product was successfull, and that is the case.  After production of the video and airtime, my inventory will have to be replenished due to the current orders and clients.  Thanks for your input.

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Trent Rousey
President - 3R Products, Inc.

Hi Trent,
I think I was trying to say that if you have a real product, you`re actually selling it, and your intent is to sell *more* of it, then you have a much easier time than most.

Are you looking for actual capital, or a partner in the sense of someone who produces infommercials, perhaps for some sort of profit sharing?


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Craig Landes
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Defining the undefinable. "There are 10 kinds of people in the world---those who understand binary numbers and those who don`t." - Unknown

International Society of Curmudgeons

Craig,  We already have a company to do production of the 60 sec. spot, we are looking for capital, with the incentive of profit sharing.  Thanks, I hope someone can help.  Thanks....Trent

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Trent Rousey
President - 3R Products, Inc.

Craig is right about VC`s.  A good resource.  They are typically focused on ROI and risk.  Still not a bad resource if you don`t want to assume all the risk and give up some of the earnings.

My suggestion would be to go to your banker.  Do you have a line of credit?  Can you increase it?  OR more importantly...By now you should have a close relationship with a banker and if don`t, you should be building one.  It takes time.  If you have excellent payment history with your bank, he/she is usually more than happy to loan the funds necessary to a company that is "growing" and has been "borrowing and paying back those loans".  If not, find another bank.

Also as a courtesy to him, I meet with my banker at least yearly for lunch and give him an update on how we are doing and what I have planned (new products and working capital requirements) for the upcoming year or three.  Since he`s in the loop and understands my business, it`s easier for me to call him and ask for $100,000 for working capital.  AND because I have history and he knows I have paid all my loans back, ON TIME.

I also provide him a copy of my business plan.

Another tip, when money was tight or is tight, I always paid/pay the bank first and on time.

Thanks, that`s very good advice.  We have a great relationship with our bank, I just always get concerned with increasing the already high bank note that I have, but it could mean getting rid of that debt with this project.  Thanks again for the advice.

 

Trent Rousey

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Trent Rousey
President - 3R Products, Inc.

Trent,

There are several possibilities including borrowing the funds from the bank. This will likely be the "cheapest" capital you can acquire - if you & the company can "handle" the debt burden.

Other options would depend a bit on -how much Capital you need.  You might also consider a revenue sharing offer - where the investor receives something on each sale. Sort of a royalty type arrangement. There are people who invest in these types of situations, but they may not be the "traditional" VC firms.

Note: This is selling a security - so you`ll want to get professional advice to ensure everything is "proper".

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Thanks everyone, the advice form everyone is much appreciated.

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Trent Rousey
President - 3R Products, Inc.

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Doug Atherton
Regional Vice President
Equity Corporate Finance, Inc.
DouglasA@equitycorpfinace.com
888-498-8999 ext. 109