Resources and Funding
Tips
There are no specific rules to follow when looking for money to fund a new venture. But there are many tips that seasoned entrepreneurs can offer to make an inventors search for financing a little more successful.
Landers and Mankle both suggest getting letters of intent from potential customers. A letter of intent is a promise to buy a product or service once it is produced. If a lot of customers promise to buy a future product that needs funding, investors know there is a ready market for their money, and people already want the product. This also shows people are ready to buy at the discussed price point. It would also be a plus if money was taken from potential customers showing a profit and market potential.
It is also a good idea not to rush to the biggest companies or most professional angel investors. Investors who are experienced will want the highest return on their money, and will most likely require the most stringent financial explanations. Inventors should try and locate new money in order to pay lower interest rates or give away less of the company for start-up money. If the inventor went to college, or graduate school, a good place to start looking is the alumni base (Mankle). Past graduates are likely to have money and might want to invest in an old college friend or student from the same school.
Paper outline
- Protecting inventions
- Manufacturing the product
- Getting resources and financing
- Testing the market
- Preparing products for market
- Closing thoughts
- Download the entire paper
Check out the Silent Timer Web site to see the product Erik took to market. Contact him with any questions.
