Seed Money for Starting a Company

You wrote: "I have two Ideas that I'd like to try again. One was a great business that we did back in the 70's and 80's that was great. And thinking of starting it again."

I hate to ask, but if it was great business then why did not stay with it and grow it? If you can not come up with a good answer for this, then nobody will give you money. Investors expect you to stay with the company until you retire or they force you out through the Board.

Well,
There were several reasons, But the few major ones are these.

<><>While yes I did help my father develop and produce the product, at the time I was quite young and very in-experienced in the "Business" side of the company. I was in charge of the production of the product. The management side was all my Dad.

Then My Dad Passed away from a sudden heart attack, obviously this effected us all greatly. I was 16, and now had to try to run the whole business, my self. Or I wish I had tried to do it all myself I should say. Being Naieve' I let my mother take over the duties that my father was doing, and I concentrated on the production floor. At peak we had about 200 employees working for us. And were quite profitable.

We were paying our employees above the average areas pay for similar work by about 25% Plus had bonus plans where the ones that produced more, the top 10% of the workers, got in their pay and additional 10% pay bonus each week. It was a lively competition. Anyway thats off subject. You ask why the business isn't still around?

My Mother. Simple.

Little did I know that she was blowing the companies money like it would never end. Buying houses (that I did not know of) Like I said I was 16 and very Naieve'.

By the time I was 18, the company was seemingly floursishing, little did I know the whole foundation was about to crumble.

And at 20, One day My Mom comes out to my house, and said she can't do it anymore, she can't take the stress, And had a contract that was signing the whole company to me. I asked why?

She just said shes getting re married and moving to Florida to retire. Stupidly I agreed and signed everything without checking anything out. Little did I know that for years she hasn't been paying any bills at all. The mortgage on the buildings were like 1 month from sherrif sale, it already has gone through the flrcloseure process, the power was close to 70,000 in past due amounts, I could not buy materials to produce product because she hasn't paid them for the last several orders of materials. There was just no way out, and I closed the doors and sold what we had in an auction, I lost everything, even my own home.

Anyway,, the past is the past, The demand is still out there for these things we made. We sold them for between 150 and 200 dollars, Every now and then one will appear on E Bay, and every time they sell for well over 1000 bucks, one a month or two ago actually went for 3500 bucks! So the market is still there.

Just wondering how to get some seed money to get it going again. I have no security to offer as collateral other than the product and it's history of sales.

Thanks

Tell this same explanation to investors and based on my little experience with investors, they will laugh just as I did and ignore it all. I was merely alerting you to possible question that is all.

Good luck and you are still young enough by most investors standards, something could break positive, one never knows.

Just curious as to what you mean by all that, AND mean by your young,,,

actual age? not really any more now 52,

so please explain yourself?

Thanks

What I meant was that the explanation would satisfy them (the investors) and exculpate you of the failure, so they (the investors) would discount your not still being in the business. That is all good I meant

Regarding age, well, I will let you think about it, keeping in mind that most companies that have to lay-off workers usually start with those who are 50 and older; and so I just thinking that investors might prefer younger ones for the long haul; however, you have the experience of the business so the possibly of leveraging the business quickly to a larger size should count for something. After all, to be able to retain a larger percentage of the company, you have to build it up to a large size very rapidly, so that their negotiated share gets to be small. Just my guess

Goodluck.

What State are you located in? I'm 53yrs. if it is worth something it will be realized,there are funds out there,again let me know your State.Good Luck.

Wisconsin,

But not too sure as to how that matters? Even in the 70's / 80's we sold these worldwide. And the sales were spread solely by word of mouth. We did absolitely no advertising what-so-ever.

Now with the internet this should reall be easier wouldn't you say.?

Try this site that brings investors and entrepreneurs together

Dear Mr.Joe Mayenschein,

Please let me know how we can help you in realising your dreams? What you really need from us to make the project going and what in return is expected?

Regards

Sanjeev

Hi Langyaw -- thanks for the comment.

There is a strange misconception about what we all call "ingenuity". We tend to think of it as somehow relating to 'genius', and therefore the invention, but ingenuity is actually a perception.

Many years ago, there was a company who did quite well by introducing the 'pet rock' ... it was just like it sounds ... a rock in a box ... they sold LOTS and everyone considered it 'ingenious'. Consider today the MASSIVE success of the iPod, yet, functionally it is maybe not quite as good as other similar products. Maybe a better example is the iPhone which (for me) is way off the mark from other mobile phones.

As a designer, I can (and sometimes do) create 'wonderful' things ... maybe great improvements over other 'models'; maybe better performance; maybe better looking or lighter weight, or 'greener'. Still, with all my best efforts, that won't guarantee it's success, or (at least by my definition) if it is ingenius.

Where I live now (Suzhou, China), there are probably 50 very good restaurants within walking distance from my home. I am always amazed how some are always PACKED, and others seem always empty. What's the right business model for success? WOW, if we could find that, we would all be rich.

[BTW, if you'd like to buy one of my 'better moustraps', I'll make you a good deal ]

Kind regards ...

yes. contendment it is called.

I think your post is very sound advice and a GA.

In India there is an old concept called "vanaprasta" and "vidya daana". "vanaprasta" means retirement to forests for meditation. In modern times it means retirement from active life and work for the benefit of the society from which you received so much. And more time for meditation. "vidya daana" means donation of knowledge. Donate it on mild business terms to some persons and get the pensions in form of fees. Meditate and you will get the answers. it is simply amazing ! I have 75% hearing deficiency and still running a small company of 18 design engineers. I am running it since the last 21 yaers and am now aged 63. I did not make it a family company. One faithfull employee is now in charge.

I never had much luck with SCORE (the last 2 letters of the acronym stand for retired executives, not retired owners). They will generally just give you a sample bus- plan and direct you to a college course or something to that effect. The SBA is broken into divisions, if you go straight to your local SBA you'll get the same crap. But if you go to the SBDN or a local SBDC (division of the SBA), you will have better access to answers. Then again, perhaps it is different in your area than mine. Check out this site for free online training that (IMHO) is better than what you will get from SCORE or the local SBA office:

http://www.sba.gov/services/training/onlinecourses/index.html

I know, it sounds like a waste of time. You may be thinking "I want startup capitol, not a lecture on how to run a business". You will not find that capitol without a business plan. Also, consider a trustworthy partner who has a skill set that you lack, not the same skills you have. And get a lawyer before you do anything concerning investors or partners....

Starting a business takes knowledge, skill, timing, and a touch of luck. So good luck.

Thanks For the Encourgement.
Joe

Dear Joe,

I am still waiting for your response to my request dated 31.03.2009.

Rgds

Sanjeev