Forums: Discussions for entrepreneurs and small business.

I think what`s interesting to me is that this thread either has people taking me seriously, where I really and truly am an investor; or, it demonstrates an important but different point. Most people looking for investors at this level of the startup arena, really have no idea what they`d do with that money.

I suspect that too many startup business owners believe that the only thing holding them back is a lack of investment funds from "somebody." This gives them the freedom to believe they`re really working on starting a business, but without actually having to do anything. They`re "waiting" for the day when money shows up.

My intent was to help people who really DO have a need for investment capital, do exactly what Soldu2 suggests---to practice their pitch. Most investors could care less about excitement without facts or details. It`s not easy getting someone to invest money, and there are many critical necessities that must be in place when you make a pitch for that capital.

But as you see, not much interest in that sort of practice. :-)

What I see as perhaps missing, although it may just be terminology, is a reference to your "long-term competitive advantage." I understand the "competitive advantages" listing above, but that should be tied to your strategy for entering the market in the first place.

Why does this product exist? What value does it create/offer to the open market and target market? What length of time to you project to be unique before someone else enters into competition?

Most importantly, what makes you and your product unique in this market?

Looking for ideas on how to present your company as an investment opportunity?  Visit the website of Tech Coast Angels and review their presentation guidelines. 

This is my first time here, but here is an investment idea for role play:

Product: Kids Software for browsing the internet

Target Market: Families (mostly moms) with kids under 12 years old

Starting Overhead: Website, Product Development, Product Media(CD`s, etc)

Marketing Overhead: Marketing via internet, Marketing via TV/Radio/Media coverage

Ongoing Overhead: Website Maintenance, Marketing, Product Media

 

OK, so let`s break this down like a low-income starting business person/company would. You develop the product yourself, due to having the technical background/knowledge to create it - not to mention lack of funds. For these same reasons, you also create the website. The website to be hosted on a server that you lease space from.

So, the Overhead remaining after this would be: Marketing, Product Media, Website Hosting

Having the target market of "Families (mostly moms) with kids under 12 years old", where do we begin?

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www.ezkidsnet.com

Protect your child from internet dangers!
EZ KIDS NET is guaranteed to keep your child safe & protected while visiting their favorite websites!

With EZ KIDS NET, the internet is now a fun and safe place for kids to play!

(Lighting up a big fat stogie, leaning back in my super-huge executive office chair)

Okay, so you`ve got this kid`s software. How much you lookin` for me to invest?

Starting off, casual gaming companies (RealArcade of RealNetworks) are usally a minimum of 10k to start some kind of campaign with them. They have the same target market as this project. Advertising with companies as this, will give `in-game` advertising, `pre-download` advertising (when downloading a game, your ad is placed in the download window until they click away from it), and frontpage-ad on there website.

Getting a strong ad-sense or ad-word campaign going in Google, I am figuring on 10k also, to get a strong foothold in the frontline on the searches.

Advertising in parental/mother`s magazine(s), I figure another 10k.

Advertising with Cartoon Network, Nickelodeon, or something of the sort, due to high exposure to the age group of kids this would target. I am not sure on their campaign costs, but not having to do a big production of actors, but filming the browser in use and an excited reaction from a kid - 10k?

Misc. advertising: Radio ad, main metro newspaper, mailers, etc - 10k

So, basically adding up about 50k, give or take depending on the true marketing campaigns to really go after. Remember, having this idea, that the developer isn`t too skilled in marketing, but believes in the product. The product begin tested by own children, friends, and other family member`s children with high appreciation for how it works.

 

Lay your thoughts on me..hehe

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www.ezkidsnet.com

Protect your child from internet dangers!
EZ KIDS NET is guaranteed to keep your child safe & protected while visiting their favorite websites!

With EZ KIDS NET, the internet is now a fun and safe place for kids to play!

As a marketing person I think your magazine and cable advertising budget are a little too  low.  I would bump them up to at least $15k each. These are national media outlets and so running your ad will be more. If you only do regional or local putlets the cost will drop but then you are reaching a smaller demo.

Also you should have a public relations budget. "Third-party" endorsments are better than ads anyday. A news story on your product in any media outlet is seen as a third-party endorsement and carries more weight with consumers. I would estiamte about $25,000-$30,000/year for public relations.

You are spending ad dollars on Real Arcade that mostly children go to and I wondered if your rationale is that they will see the ad and tell their mothers about it?  But why is their no ad dollars alotted for ads on ivillage, WE, Oxygen, Lifetime. All of which have shows on television and very active websites.

They would be my first stop in trying to reach your primary audience and thye are great for media coverage as well. Plus you have The view, Oprah, and Ellen.

 

 

Answering: "If you only do regional or local putlets the cost will drop but then you are reaching a smaller demo."  I actually had thought about starting local, to gain exposure, and have a strong test market first. Friends and family are great, but have a slight biased opinion, and in my family/friend circle, the income range is about the same.

Answering: "You are spending ad dollars on Real Arcade that mostly children go to and I wondered if your rationale is that they will see the ad and tell their mothers about it?"  Actually, Real Arcade is targeted for at home moms (I work there :) . It is casual gaming and is a huge, lucrative business. 75% of the members are between 22-34 year old mothers. It is their break from the world and screaming kids. this is why I would go with a casual gaming company ad. they target the same clients, and already have their attention.

I agree with you on "If you only do regional or local putlets the cost will drop..." Which is why I would try multiple campaigns locally with the use of the ad money, instead of spending way more money than I have, or the investor willing to put forth, until the product is proven with some sort of profitable track record.

Your advice is good, and appreciated, but would be more for a larger scaled campaign, which could be launched once product has some exposure.

-------------------------

www.ezkidsnet.com

Protect your child from internet dangers!
EZ KIDS NET is guaranteed to keep your child safe & protected while visiting their favorite websites!

With EZ KIDS NET, the internet is now a fun and safe place for kids to play!

Okay, this is all well and good, but what`s the bottom line investment--$50K or more?

Would you need all this money initially, or would it be phased in over some period of time? More importantly, when can I start to see some returns on this?