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Re-start of highly successful company

    • 11 posts
    November 21, 2007 2:58 PM EST
    Hello to all.......
     
    I am in the early stages of "re-starting" a highly successful company which I owned and operated in the early 1990`s.  The company was a sales and marketing venture specifically engaged in the sales and marketing of a unique product dedicated to the health and physical fitness market.  More specifically, that product was an OTC (over the counter) propietary , scientifically formulated, chewable tablet designed to assist the individual wishing to lose weight. 

    The Unites States Government recently released statistics confirming the increasing plight of mostAmericans. 74% of all persons over the age of 25 are considered to be overweight. This is an increase from 59% just 10 years ago. Put another way, 40% of the entire population (over 100 Million people) are identified as being "obese" or more than 20% over their ideal weight.

     

    Obesity is recognized as being a "significant contributing factor in heart disease, hypertension, high blood pressure, and several other life threatening illnesses".

    Initially, sales went from zero to over $900,000.00 in just 10 1/2 months.    

    Because of the limited amount of funding required, and the tremendous upside potential of the market, Omega NutritionTM would be interested in securing funding through corporate debt financing, equity financing via convertible debentures, stock, or a combination thereof; or any other structured financial instrument mutually acceptable to Omega NutritionTM and the potential invetor/s. Omega NutritionTM is willing to pay a substantial rate of interest or return on amounts obtained. If interest were shown on the part of the investing individual/s toward becoming involved in some capacity which might lead to a continued, long term income stream being generated as a result of their involvement, and/or a percentage of ownership of Omega NutritionTM , those situations would be considered by Omega NutritionTM on the merits of each proposal.
     
    I am interested in receiving your comments, suggestions, advice etc. regarding this re-start opportunity.   Initial projections indicate that once re-entry to the marketplace is accomplished, the company can reasonably expect sales to exceed $2M within the first 18 months.
     
    Thank you for your responses.
     
    Jerry  aka  ijitterbug     I can also be reached at jwilson75@kc.rr.com  or  (816) 739-4494
    • 11 posts
    November 22, 2007 6:03 AM EST
    Hello Robertj:  thank you for your rapid response to my posting regarding the "re-start" of my company.
    The following is a brief overview of the company, the market, and preliminary ideas of financing options, including amounts sought.

    STATEMENT OF OBJECTIVE

    Omega NutritionTM intends to position itself in the marketplace as a leader in marketing all natural, research proven nutraceuticals, scientifically formulated and designed to address the health and physical fitness needs of today.   The documents, charts, and information contained herein is presented to inform potential investors and other interested parties, pro-forma projections regarding financial matters.

     Projections indicate first year sales nearing $1,000,000.00

    THE MARKET

     

    100 MILLION PEOPLE

    OVERWEIGHT & OBESE INDIVIDUALS

    MEN - WOMEN - CHILDREN

     

    The Unites States Government recently released statistics confirming the increasing plight of most Americans. 74% of all persons over the age of 25 are considered to be overweight. This is an increase from 59% just 10 years ago. Put another way, 40% of the entire population (over 100 Million people) are identified as being "obese" or more than 20% over their ideal weight.

     

    Obesity is recognized as being a "significant contributing factor in heart disease, hypertension, high blood pressure, and several other life threatening illnesses".

    OMEGA NUTRITIONTM
    9305 NW 79th Street
     Weatherby Lake, MO. 64152-1605

     

    With the decision made as to where and how to re-enter the marketplace with their products, and with documentation of past performance at hand, the problem now facing Omega NutritionTM is simply one of a financial matter. Omega NutritionTM has held numerous telephone conversations with some of their former customers and have found these customers to be highly receptive to rebuilding the relationship with the company. Some of these customers have gone even further and said they were no longer beingserved by their previous suppliers of like product which the Company marketed. Each of these personsgenerally voiced the same opinion. Each was confident Omega NutritionTM could rapidly regain it’s previous position in the marketplace and be assured of continued support from these individuals.

    The Company is poised to move quickly and aggressively to the market as soon as the financial concerns are resolved. The Company is confident it can reach financially sound footing in a matter of 180 days or less with a limited amount of funds required. The amount of funding would vary, depending on the individual funding party/s involvement and/or expectations. An amount which has been determined by Omega NutritionTM to be the minimal amount necessary for ensuring the Company’s successful re-entry to the market and providing advertising for those customers choosing to once again become participating stores, is $75,000.00 with a maximum the Company wishes to consider as an investment to be $150,000.00. The minimum amount ($75,000) would allow Omega NutritionTM to re-enter previously identified markets. Because of the limited amount of funding required, and the tremendous upside potential of the market, Omega NutritionTM would be interested in securing funding through corporate debt financing, equity financing via convertible debentures, stock, or a combination thereof; or any other structured financial instrument mutually acceptable to Omega NutritionTM and the potential invetor/s. Omega NutritionTM is willing to pay a substantial rate of interest or return on amounts obtained. If interest were shown on the part of the investing individual/s toward becoming involved in some capacity which might lead to a continued, long term income stream being generated as a result of their involvement, and/or a percentage of ownership of Omega NutritionTM , those situations would be considered by Omega NutritionTM on the merits of each proposal.

    Other options for participation may be considered by Omega NutritionTM.
     
    In summation, it is the sincere belief of Omega NutritionTM , regardless of the level of investment and involvement in the Company, the person or persons who become investors will be more than satisfied with the returns on their investments.
     
    Jerry Wilson

    Omega NutritionTM

    • 11 posts
    November 23, 2007 6:54 AM EST
    Thank you robertj for your response and comments.
     
    I can certainly appreciate you initial reaction to the limited amount of capital requested for this re-start venture. 
     
    Without divulging (at this point in time) all the pertinent detatils surrounding the re-start, let me simply assure you of one fact.
     
    An intense amount of research and due diligence has been conducted to date as to overall costs projected to reenter the marketplace with my product.  Having successfully conducted this business for a prior period of time, I am very cognizant of expenses and costs necessary.  Having stated that, it is my intent to re-enter markets (Independent Retail Drugstores) that were historically high revenue producers with a ratio of cost of doing business to sales being very positive.
     
    I have re-established the contract manufacturing agreement with a supplier, compiled on an extensive basis the total costs ........  product, label, literature, inbound freight, outbound freight, (UPS charges) boxes, advetising costs in market selected newspapers, and (literally) all the rest of anticipated start up expenses....telephone(s), postage for letters etc, and have also included in this overall "cost of startup" figure......... needed legal, insurance, and other miscellaneous items............resulting in a bottom line figure somewhat less than the minimum amount ($75,000) referenced.
     
    The minimum of $75,000 will allow me to engage in a complete re-start in select target market areas and all projections to this point in time indicate that the company should be in a  positive cash flow position with good profit margins within the first 180 days.
     
    In order to fully understand my reasoning (and supporting data) for the above, it would be necessary to literally have a "face to face" meeting in which a prospective investor/s would be more fully able to recognize the essence of this re-start opportunity.   
     
    Just as a "tip of the iceberg" insight into strategy which will be implemented in the re-start.  One of the strong points in the overall strategy, is a methodology I devised whereby I am able to get a "literally unknown product" on the shelves of an Independent Retail Drugstore in a very high percentage of the times when the full concept is explained to the proprietor of said establishment.   That one issue is of critical importance to the success of my total marketing strategy.  The complete marketing stratagem is comprised of three steps, which when explained to the store management, and is implemented, has led to astonishingly positive results in the past.
     
    I a quick summation, once the financial concerns are addressed and solved, the company will once again be a very profitable venture.
     
    Thanks again for your input.  I certainly appreciate and respect your ideas and advice and am anticipating further discussion with you regarding the company.
     
    Jerry  aka  ijitterbug    jwilson75@kc.rr.com    (816)  739-4494  
     
    Respectfully   
    ijitterbug11/23/2007 12:56 PM
    • 927 posts
    November 22, 2007 5:15 AM EST

    Jerry,

    Have you identified the amount of capital you need?

     

    ---
    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


    • 927 posts
    November 23, 2007 5:41 AM EST

    Jerry,

    At first glance, $75,000 seems like a relatively small amount for market reentry.  Although I understand and appreciate your willingness to be flexible -I`m personally not a big fan of the open for negotiation approach. In my experience, the results usually favor the investor.

     

    ---
    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