Hello DefMall and CraigL:
Thanks to each of you for responding to my post asking for suggestions etc. regarding the possible "re-start" of my former company.
Let me address the questions "why did you walk away from the business initially? How long ago did you have this sales surge, and how long have you been away from the biz? "
To make a long story short and more importantly, straight to the point. I sold my company in late November 1991 to an individual who had a great deal of money and was consistently pressing me to either invest in the company or buy it in its entirety. Well, I named a price, and darned if he didn’t take me up. In concluding the transaction I had very good legal counsel, and as part of the sale in what I felt was an unlikely eventuality; should the company fail etc., I retained all rights to formula(s), contract manufacturing contacts, and of particular value, the proprietary marketing methodology and stratagems which I conceived, developed, implemented and managed. Flash forward just a short 18 months after I consummated the sale, the buyer placed the company into insolvency. There were several causes for his actions, not the least of which were his attempts to increase his "bottom line" by reducing the advertising regularity, and even worse, changing the formula(s) of the product using less expensive ingredients.
"how long have you been away from the biz? " After his (the purchaser of the company) having placed it into insolvency, I immediately through legal recourse"reclaimed" all rights and other valuable assets. As I took preliminary steps toward re-establishing my company, I began to have some urgent health problems which led to my having a 6 way bypass. Needless to say, that slowed me down considerably. Some 6 months of regaining a degree of normalcy and not having anyone at that particular time who was interested in assisting me with running the company and eventually taking full stewardship, I opted to curtail my efforts to rebuild the company.
Now to address the question, "what sort of business this was" etc.
Without going into great depth regarding the innermost workings of the company,
With the collaboration of a well known Clinical Nutritionist (MD), Pharmacologists, Toxicologists, numerous Rph’s (registered pharmacists) and relying on various publicized studies and reports of highly acclaimed researchers (PHDs), I was instrumental in creating, designing and developing a scientifically formulated balance of ingredients into a chewable tablet so designed as to assist a person in their efforts to stay on a weight loss regimen.
This product was marketed to a very specific niche. The Independent Retail Drugstore.
Initially, I chose a limited (12 Western State) geographical market to enter. In a relatively short period of time, by using a highly creative and effective methodology designed by me, I was able to secure a small number (less than 600) Independent Retail Drugstores to participate in my company program. There are presently 18,478 Independent Retail Drugstores in the United States.
A quick point to be made here. If the company after its "re-start" is only able to acquire 10% of available stores nationally, projections show this would result in sales exceeding $3M. Fact: My previous efforts to bring stores into the program resulted in over 30% of stores solicited joined the program.
It is of great importance to note there are two ABSOLUTES when selling into a Drugstore.
Literally all stores have limited shelf space. It is very difficult to convince a Pharmacist to bring something into his/her store without a prior demand for the product.
Once a product is accepted by the Pharmacist to be placed in his/her store.....it is of critical importance that DEMAND
for product is created, ergo, the product quickly moves off the shelf and repeat sales follow.
These two criteria were addressed early on by me. I created and implemented specific methods to assure quick acceptance of my product into the store, and then followed with a unique and highly effective method to build sales for my product in each store in the company program.
To conclude this rather lengthy disclosure.........
Contract manufacturers are in place, the method by which individual stores are brought into the program is in place.
And best of all, the United States National Institute of Health has declared "Obesity has risen to epidemic levels in the U.S. It causes devastating and costly health problems, reduces life expectancy, and is associated with stigma and discrimination."
In a small way, the company’s chewable tablet will help fight the "Battle of the Bulge".
Hope this answers some of the questions.
Jerry aka ijitterbug