Frequently
Asked Questions
Here are just a few of the most frequently asked questions
we receive from clients.
Question:
“I have an idea for a terrific product. Do I need a
business plan?”
Answer: Absolutely. In the current market for capital, a clear,
focused business plan is crucial. Investors will not spend
a minute looking at a project until they see if it meets their
specific criteria. A well-written business plan will do this.
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Question:
“How can I gauge potential market interest in my product?”
Answer: There is no single magic formula. However, a good
guide is the Rule of 4.
1. Does your product have a first to market advantage?
2. Is there a strong management in place?
3. What proprietary feature, or benefit, does your product
offer?
4. Do the financials portray an exciting Return on Investment?
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Question:
“What criteria do you use to rate clients, projects
and chances for success?”
Answer: No two projects are the same. We are select in choosing
clients. We always prefer to meet personally with a client
to be sure we are right for each other. Turning down a client
is preferable to accepting a project that has no chance for
commercial success. Our income and reputation is enhanced
by a successful product placement.
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Question:
“I am an engineer by trade and I am uncomfortable in
a sales situation. Can you assist in selling my product?”
Answer: “Yes, in several ways. We often make key account
presentations for clients. Part of our service is creation
of sales and promotional materials. In addition, we always
attend the presentations for investment groups, joint ventures
and licensing products. Also, we organize sales coverage through
independent sales organizations and showrooms. A number of
our clients have international sales being generated through
distribution agreements we have organized.
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Question:
“Why pay for a business plan, they are all over the
Internet
for $50?”
Answer: Simple answer, we have never seen a project funded
off an inter-net business plan template. Bankers see hundreds
of plans per year. If the plan is not exciting, creative,
focused, it will not be read. Opening a business plan we can
tell immediately if it is thoughtfully, professionally written,
or a fill in the blank template. How a plan is constructed
and written speaks volumes about an entrepreneur’s commitment.
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Question:
“What is the most common error you see entrepreneur’s
make?”
Answer: Pursuing capital too soon. The typical entrepreneur
is fixated on funding and has minimized the importance of
proper market research. Unless there is a rich uncle in the
picture, the start-up will need help from outside sources
of capital. This investment will only happen if the proper
planning, strategy, projections and financials are in place.
There are simply no shortcuts. Many great products never succeed,
while often inferior products enjoy great success. A solid
marketing plan is crucial.
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Question:
“Do you have funding sources for my project or company
expansion?”
Answer: We are selective, and careful, in analyzing the commercial
potential of every client we work with. We only work with
projects in which we have confidence of commercial success.
Those projects will be presented to a network of sources,
investment bankers, blind investment pools, angel and mezzanine
firms and individuals with interest in the specific product
or service being offered. The project will be professionally
presented to serious groups and given the maximum opportunity
to be successfully placed.
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Question:
“Other than investment funding, what are my best options
to expand?”
Answer: Many. In fact, most start-up or small growth companies
instinctively seek funding as the best method for advancing
their business without considering all options. Franchising,
strategic alliance, joint ventures, international distributors,
partnering, royalty, licensing are some of the options available
for launching or expanding a business.
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Question:
“How do I determine the best channel of distribution
to sell my product?”
Answer: Competitive analysis, funding realities, supply chain,
company infrastructure and product features and pricing are
only a few of the factors considered in determining the proper
sales channel for a product. The marketing strategy will be
directed to maximizing sales and minimizing promotion. We
will create a niche strategy specific to the unique features
of your product while minimizing any negative features. For
example, a product with great shipping weight probably would
be of minimal interest to Direct Response Marketers. Our experience
and relationships with major retailers, Direct Response Marketers,
catalog’s and international distributors insures your
product will be presented to the appropriate decision makers
in the chosen sales channel.
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Question:
"How can your business and marketing experience help
launch my startup?".
Answer: We typically save the entrepreneur time and money
by avoiding costly mistakes. We have been successful entrepreneurs
for 25 years. Starting a business can seem daunting. We walk
each step of the way with the client. Proper timelines, budgets
and plans are the guideposts created for each project. Government
regulations are reviewed, licenses, legal and accounting systems
organized if needed. Before a client is introduced to investment
sources, coaching and presentations are refined to perfection.
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