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Scaling a business and finding angel investors - Q & A

David from Miami joins the show to talk about some methods of scaling your business, as well as some ways to find potential angel investors.

Rich Sloan:  And we've got David out of Miami, Florida.  Welcome to our show. 

David:  Well, thank you so much.  Hello, Rich and Jeff.  Thanks for having me on your show.

Jeff Sloan:  It's so funny that you said it that way.  I know what's coming, Rich, you're gonna talk about our grandfather.

Rich Sloan:  No, no -- who also, by the way was from Miami.  Go ahead and tell him what was funny about it.

Jeff Sloan:  He -- he was so -- you know, me, being the oldest child, he was so fixated on the name Jeff, 'cause that's what he was used to saying for so much longer, actually seven years longer than he was used to saying Richard.  So whenever he would address Richard, he would start out with a "Jeff," but the Jeff would only get half way through, so it turned it being Ja-Richard..

David:  Yeah, I just got a little stage fright, that's all.

Rich Sloan:  David, don't do that to me, man.  That's really traumatizing for the younger brother. 

David:   Okay.  You guys ready?

Jeff Sloan: Yeah.

Rich Sloan:  We're ready. 

David:  Well, the name of my business is the Native American Puppet Theater.  And on a previous show, I gave an elevator pitch to Frank Hennessy about my business. Well, the children have fun making puppets, learning about the behavior and sounds of animals and getting involved with their puppets during story time.

Jeff Sloan: Right. 

David:  Well, I'm constantly getting positive feedback and the children crave for more, so I have decided to extend my product line to include a boxed game set, well-crafted muppets with a price tag and a lecture series.  So I wanted to follow up with you.  Now, how can I --

Jeff Sloan: Let me just ask a question about that.  So that's something, David, you're gonna sell at retail? 

David:  Well, for example, I would -- towards the end of my show, at the end of the show -- it would be over and a child might see, Oh, there's a raven, a muppet.  Mommy, mommy, can I have one?  Yeah.

Jeff Sloan:  Now, I gotta tell you, that strikes me as very smart.

David:  Well, thank you.

Jeff Sloan:  I like that a lot.

David:  And then -- well, the boxed game set is the same approach.  I could say, "Hey, here's a boxed game.  You guys can play it at your home," or whatever.

Jeff Sloan:  Yeah, see, there's always this issue in business, especially small business, of scaling.  And we just talked about that.  How do you scale a business?  And this is one way that you can take -- you know, how many puppet shows can you give?  You know, but this is a way for you to scale your business and make more profit off of what you're doing. 

David:  Absolutely.

Rich Sloan:  And I'll tell you -- I'll tell you, David, you know, you're talking about -- you were talking about actual puppets and things of that kind that you would sell afterward. I'll tell you a less expensive way to provide a product after your show. 

David:  Uh-huh.

Rich Sloan:  Provide a DVD.  Provide a DVD of you doing a puppet or muppet show, whatever it may be. 

David:  Uh-huh.

Rich Sloan:  And it could riff off in some direction.  It could be the story about the raven who is a member of --

Jeff Sloan: It could be the rest of the story.

Rich Sloan:  The rest of the story, whatever it may be.

Jeff Sloan:  Chapter two.

Rich Sloan:   Yeah. 

David:  Is it Jeff or Rich, because you remind me that that's exactly what I had in mind for the boxed game set.

Rich Sloan:  Well, this -- this is Rich.  You can attribute any smart comments to Rich. 

David:  Okay.  Well, you know, I have a few follow up questions.

Jeff Sloan:  I'm letting him -- I'm letting him go with that, David. 

David:  Pardon me?

Jeff Sloan:  I'm letting him go on that one. 

David:  Okay.

Rich Sloan:  Yeah, but, no, here, David, I want to explain --

David:  Yeah, okay.

Rich Sloan:   -- the reason why I'm advocating that. 

David:  Okay.

Rich Sloan:  It's a whole lot less expensive and much easier to replicate –

Jeff Sloan:  But -- but are you suggesting --

Rich Sloan:  Can you let me finish?

Jeff Sloan:  Wait, wait, wait.  Are you suggesting doing it instead of giving away -- or, selling the muppet, too?  I think both are great.

Rich Sloan:  David, David, listen to me. 

David:  Yeah.

Rich Sloan:  Initially to get people excited about what you're doing, I think it will less expensive, less risk and much easier for you to produce with some profitability a small volume of DVDs before you go to the extent of making the muppets.

Jeff Sloan:  David, this is Jeff.  I got just one thing to say.  Listen to me. 

David:  Okay, yeah.

Jeff Sloan:  No, I -- I think -- I actually, all kidding aside, Rich's suggestion is a great one, but I also do like the idea of selling the puppet, too.  I don't think the puppet costs that much to manufacture, does it? 

David:  Well, I know a few craftsmen in the neighborhood.

Rich Sloan:  You know what, let's just skip -- hey, Jeff, let's skip David's question and let's just talk to each other. 

David:  Yeah, there we go.  Well, first of all I'm trying to find an angel investor in my community, and can you give me some tips on how to put together a business plan?

Jeff Sloan:  Well, the tips on how to put together a business plan you can find at StartupNation.com.  We've got, you know, all that free information there.  There's a ten-step program on how you get a business from idea all the way through to launch. And definitely there's a good bit of information on how to write a business plan on the StartupNation.com.  We won't focus on that.  But in terms of getting an angel investor --

David:  Well, finding an angel investor in the community.

Jeff Sloan:  Yeah, finding -- that's the challenge, finding.  But the answer is this.  You're bringing potential angel investors into your business all the time.  Those parents of those children who are liking what you're doing are angel investors potentially.  I mean, those people right there could become angel investors.

Rich Sloan:  Yep.

Jeff Sloan:  So make sure you press the flesh.  Make sure you talk to people in the community. Once you find one angel investor, the key is to have that angel investor lead you to others.

Rich Sloan:  Jeff, let's not put the cart before the horse here.  If he doesn't have a business plan yet, how he does he even know he wants an angel investor?

Jeff Sloan: Well, it's fundamental.  You gotta have a business plan.

Rich Sloan:   He might want just a small amount of money from friends and family instead of a fancy angel investor who might have a different level of expectation.  So you know what, do things in the right order as Jeff said.  Go to StartupNation.com.

David:  Yeah.

Rich Sloan:  Go through the ten-step process to get the business plan in place.

Jeff Sloan: And everybody's always asking where to find angel investors.  Obviously, they're a valuable commodity, let's say.  You know, accountants, lawyers, going to chamber of commerce meetings in your community, as well as -- as I say, just pressing the flesh and talking to people who might have money and having them lead you to others.  That's the way you find angel investors.