Investors & Know How

[Kate Rothery]

Firstly I wasn’t sure if this belonged in ‘start ups’ so admins feel free to move!

I’ve run my own business for a few years now and it’s been quite successful (I turn a profit albeit a small one but it’s rising year on year). Launching that business I managed to do all on my own as it was a case of taking a small slice of an existing market

Over the past few months I have stumbled on a new product, which I know there will be high demand for, and that no one else has yet thought of. However, my challenge is that I am not experienced enough to know how best to launch it/market it so that I can take a big enough share of the market before others notice and catch up - those with far bigger budgets and experience than me

Does anyone have any suggestions or advice on how you would normally handle this? Should I be looking for an investor? If so, where? And if I share my plans with someone like that what is to stop them running off and doing it themselves way before I am able to on my own?

I would really value any support or advice in this area from senior business people who can offer a younger person some wise words

Kate

 

[Ozzy]

my challenge is that I am not experienced enough to know..... [insert any lack of knowledge]

I did this because what I lacked was the experience to sell a business for multiple of millions, I'd sold several businesses for hundreds of thousands but I knew I had an idea to sell for millions and wanted some shareholders (and a board of non-exec directors) to help me with that goal.

Should I be looking for an investor?

This is a decision personal to you, how do you play with others? Would you be Ok having someone else owning a chunk of the business you started and realise it is no longer all your business? Can you take critical challenge on the chin?

I've a fan of seeking investment and having a board of directors because it has worked well for me, but I approached it eyes open and I can take critique and I'm happy to have disagreements in the best interests of the business.

if I share my plans with someone like that what is to stop them running off and doing it themselves

In theory you have NDA's in place, but there are people out there who are ruthless. You need to keep your eyes open at all time and be careful.
In reality though, investors don't want to do things themselves. They want to invest and guide, they have no interest in stealing ideas.

One thing they will all want though is a proof of concept, have you tested your idea yet?

 

[Mark T Jones]

And if I share my plans with someone like that what is to stop them running off and doing it themselves way before I am able to on my own?

Hi Kate

There are a lot of potential 'angles' on this - but this para kind of addresses the crux.

Investors aren't generally looking for ideas, they are are looking for people to run and grow businesses - probably the most common mistake in investment pitches is to fixate on the brilliance or even the mechanics of your idea rather than the business behind it - and your ability to make it work.

This applies in varying degrees to any approach to making your idea real.

Without knowing this idea, it's hard to say whether the starting point is a prototype (MVP) or market research - but both will add a lot of value to your proposition. (Or, conversely, demonstrate why it doesn't yet exist).

That is the dull reality behind most big successes!

 

[Kate Rothery]

I did this because what I lacked was the experience to sell a business for multiple of millions, I'd sold several businesses for hundreds of thousands but I knew I had an idea to sell for millions and wanted some shareholders (and a board of non-exec directors) to help me with that goal.


This is a decision personal to you, how do you play with others? Would you be Ok having someone else owning a chunk of the business you started and realise it is no longer all your business? Can you take critical challenge on the chin?

I've a fan of seeking investment and having a board of directors because it has worked well for me, but I approached it eyes open and I can take critique and I'm happy to have disagreements in the best interests of the business.


In theory you have NDA's in place, but there are people out there who are ruthless. You need to keep your eyes open at all time and be careful.
In reality though, investors don't want to do things themselves. They want to invest and guide, they have no interest in stealing ideas.

One thing they will all want though is a proof of concept, have you tested your idea yet?

Thank you Ozzy (and Mark as I see some of your responses were similar)

Appreciate the points around investors investing for a return rather than being too focused on the product - I believe I can produce an investor pack which would make for a a compelling proposal

I guess what I don’t know is - where do you ‘look’ for these types of people to pitch too? I can imagine posting on a forum/website for this type of thing would result in a barrage of people offering to get involved for precisely the reasons I fear - learning your ideas and taking them for themselves!

It must be incredibly hard to make connections with genuine investors akin the sort that appear on dragons den for example! Or maybe I am convincing myself that that’s the place I need to head!

 

[Ozzy]

investors akin the sort that appear on dragons den for example

Dragons Den is not real, and real-world angel investors (as that is what you're looking for) are nothing like how you see Dragons Den televised.

where do you ‘look’ for these types of people to pitch too?

First point of call would be your accountant may have some connections, ask them.
Then, look at networks such as Angels Den. I strongly suggest getting your pitch polished first, though.

It may also be worth looking at The Pitch, which has just opened up for entries. Some of the prizes include coaching and support in funding.

 

[Kate Rothery]

Dragons Den is not real, and real-world angel investors (as that is what you're looking for) are nothing like how you see Dragons Den televised.


First point of call would be your accountant may have some connections, ask them.
Then, look at networks such as Angels Den. I strongly suggest getting your pitch polished first, though.

It may also be worth looking at The Pitch, which has just opened up for entries. Some of the prizes include coaching and support in funding.

Thanks Ozzy, this is really helpful

 

[NickGrogan]

Dragons Den is not real

What?

You'll be telling people that The Apprentice isn't real next.

Outrageous.

 

[RevoMark]

Is is an existing product that you have seen elsewhere but not in the UK or is it a new idea for a product? If it is a new product idea that has not been made available to the public anywhere then you could be looking to protect with patent and design rights. If it is al already existing product ensure you protect the name. If you are going to be manufacturing and importing then make sure the name is registered in that country of manufacture too. China is becoming very strict and a few of my clients have run into problems with this already.

 

[Mark T Jones]

What?

You'll be telling people that The Apprentice isn't real next.

Outrageous.

In fairness DD does have relevance and actual links to investment, whereas the Apprentice....

 

[Kate Rothery]

Is is an existing product that you have seen elsewhere but not in the UK or is it a new idea for a product? If it is a new product idea that has not been made available to the public anywhere then you could be looking to protect with patent and design rights. If it is al already existing product ensure you protect the name. If you are going to be manufacturing and importing then make sure the name is registered in that country of manufacture too. China is becoming very strict and a few of my clients have run into problems with this already.

Thanks for this. It will be made in the UK and I have already registered the trademark

It’s not a product that exists right now and I hadn’t considered the patent perspective. Thank you - I will do some reading!

 

[Deleted member 348872]

are you manufacturing the item or reselling? The other issue is as soon as its doing well you will have lots of people copying, even with cover.

 

[Kate Rothery]

are you manufacturing the item or reselling? The other issue is as soon as its doing well you will have lots of people copying, even with cover.

Yes this is my worry and why I am really looking for some kind of mentoring/advice on how/when is best to launch the product. I feel I have 1 stab at getting it right before others notice and catch up.

It’s not a reselling situation, it’s manufacture of a new product that doesn’t exist and that will be in high demand. I have produced a prototype and conducted some market research with it and reactions were as I hoped - so I feel I now need to get a launch plan together and that it needs to be spot on

 

[NickGrogan]

conducted some market research with it and reactions were as I hoped

Was this with friends and family or people you know? Most "market research" is done to prove things that people already believe, not find out the truth.

Did you ask anyone to buy it? Tell them you've had a few made and they're only £xxx (whatever a fair price is) and how many would they like.

If they reach for their wallets, you've got a winner; when they make excuses, you've got the real answer.

FYI I have launched new products and services in construction, energy and recruitment

 

[Kate Rothery]

Was this with friends and family or people you know? Most "market research" is done to prove things that people already believe, not find out the truth.

Did you ask anyone to buy it? Tell them you've had a few made and they're only £xxx (whatever a fair price is) and how many would they like.

If they reach for their wallets, you've got a winner; when they make excuses, you've got the real answer.

FYI I have launched new products and services in construction, energy and recruitment

Yes this was via a consumer research forum with members of the public where my product was shared and discussed with them without them having any prior knowledge of it or myself

 

[NickGrogan]

OK, next problem. Route to market, who is going to be selling it, why would they sell?

 

[Deleted member 348872]

OK, next problem. Route to market, who is going to be selling it, why would they sell?

Clearly best route is create a new tik tok dance

 

[Jeff Morton]

Firstly I wasn’t sure if this belonged in ‘start ups’ so admins feel free to move!

I’ve run my own business for a few years now and it’s been quite successful (I turn a profit albeit a small one but it’s rising year on year). Launching that business I managed to do all on my own as it was a case of taking a small slice of an existing market

Over the past few months I have stumbled on a new product, which I know there will be high demand for, and that no one else has yet thought of. However, my challenge is that I am not experienced enough to know how best to launch it/market it so that I can take a big enough share of the market before others notice and catch up - those with far bigger budgets and experience than me

Does anyone have any suggestions or advice on how you would normally handle this? Should I be looking for an investor? If so, where? And if I share my plans with someone like that what is to stop them running off and doing it themselves way before I am able to on my own?

I would really value any support or advice in this area from senior business people who can offer a younger person some wise words

Kate

Patent it and sell the patent to someone with existing manufacturing and distribution resources.

 

[tony84]

I launched a business last year, I had a similar problem in that I thought this would be a good business and earn a lot of money.

I met up with a bloke I sort of know who has access to investors. I sat down, shown him the site (I had pumped in thousands of pounds).

He said it works, he can see how it would be beneficial, it looks good but how do you plan on generating sales...

Despite the fact you would not need an investor once it is generating money, he was pretty adamant people would only invest when it is making money...

In the end, I went to someone I knew who works in marketing. Brought him on as a partner to do his thing. Its actually worked well as I have literally no input on that, which is great as its one less thing to worry about. He deals with that as thats what he does. I deal with my side as thats what I do and we both trust eachother to do what we do and have a catch up once or twice a month.

 

[Aaron]

Yes this is my worry and why I am really looking for some kind of mentoring/advice on how/when is best to launch the product. I feel I have 1 stab at getting it right before others notice and catch up.

It’s not a reselling situation, it’s manufacture of a new product that doesn’t exist and that will be in high demand. I have produced a prototype and conducted some market research with it and reactions were as I hoped - so I feel I now need to get a launch plan together and that it needs to be spot on

Hi Kate,

I thought I'd share my opinion on it, when I started my first business I was in a very similar position to you where I was making enough revenue to sustain myself and have a fairly comfortable life but I didn't know how to grow and develop my business.

I attended a funding accelerator and met a very hands-on investor and he has changed my life and my business for the better, even now for my new business though he isn't involved (ie. doesn't have equity) he has helped me anyway. But not all investors are the same, some will give you the money based on your idea but will expect you to get on with it and others will work with you to get you to where you want to be.

I'm launching an accelerator soon, where we help companies get investment ready from strategy to preparing the relevant documents and introducing renowned experts from the ex-Ceo of Timeout magazine to the ex-head of recruitment from Vanquis bank and other experts we will then introduce investors based on your needs,

We aren't ready to take on any new customers but if you are interested, I'd be happy to have a phone call to share advice and point you in the right direction.