Forums: Discussions for entrepreneurs and small business.

I know that there is obviously variation with every product in terms of money needed to bring it to market yourself, but how much would it have required to manufacture something simple like the ShamWow or that damn Snuggie? 

Everywhere you read it says that manufacturing on your own requires substantial capital, but I cannot find a single number.  I know that`s because there is not a standard, but does anyone have an idea, or an example?

Thanks!

Clay

Hello Clay,

SoulStar,

Thanks for your reply.  Yeah I figured it was in the tens of thousands.  My plan I guess is to sell it myself for a little while to have ammunition when I approach a potential licensee and show them the product sells.  It`s a shame too because I am more of an aspiring entrepreneur than inventor.

Cheers.

Clay

Believe me I understand.  Best of luck to you Clay.

likewise thanks

Here`s my 2 cents: Everything is relative. Yes, it takes a lot of capital to manufacture something and put it out in the market....sometimes your life savings, but if you play it smart, do your research, have a realistic business plan (and by realistic I mean...keeping your overhead very low and doing a lot of things yourself) with some creativity you can get something manufactured, and out on the market. Whatever you do, or dream of....get it on paper, sketch  it out, collaborate...keep it alive, have a proto made...show it around.

You need a benchmark and the best ones come from something similar to what you want to do (duh) ... I don`t know about textiles, but our steel and plastic tacos haven`t cost us 100K over three years (more money will always be handy, but you`d be surprised by what you can make happen with bootstraps; e.g. we build our tradeshow booths out of cardboard; we don`t carry excessive inventory; we except/deal with not being perfect in all things!~).

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Chris Miller, a simple taco maker:
The Tiger Taco home in the U.S.A.
Tiger Tacos in Australia
Tiger Tacos in the United Kingdom

Chris,

Thanks for your reply.  I had in mind a similar strategy to yours.  Let me ask you this.  What is your take on the value of trade shows?  I was at an inventor network meeting in DC a couple of weeks ago and the speaker was the creator of the Furby and several other toy products.  He was definitely a fan of trade shows, but he really suggested scheduling meetings with sales reps to meet at the trade show and to not go in there blindly. 

I am very early in the product development stage, I have a basic prototype.  My plan was to try to have a solid working prototype by next Spring and visit 2 trade shows for networking purposes.  I will "conveniently" have product with me, but does this sound like a good idea?  I had another person tell me not to waste my time at trade shows (they didn`t create the Furby though...haha)

Cheers,

Clay

Clay,

Manufacturing a product can take a significant amount of capital or be done for a small amount depending upon the product, how many you intend to manufacture, your cost target and several other factors. There are usually”trade offs" involved. (For example, if you make it by hand - the investment in tooling may be low but the labor will increase the unit cost)

The investment in marketing for the product can also vary widely. Often those with the "simple" to manufacture products invest significant $ in marketing (Sham Wow)

Some products require an eco system in order to gain market acceptance. That could include distribution outlets, service centers, training programs, etc depending upon the product.

I would recommend developing a Product Plan (which is similar to a business plan but focused on the single product) The process will answer these questions (including how much capital will be required) and can also include the strategy /options for acquiring the necessary capital.

If you`d like to discuss your specific situation (in confidence) send me a PM or contact me directly.

 

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Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

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