Table of Contents:
Chapter |
Subject |
Page |
| 1 |
Forethoughts: More money is available today than ever before. Early-retired and downsized executives, and angels, are looking for products with which to start a business. Before beginning your quest for money, have a clear idea of the degree to which you are entrepreneurial. |
1 |
| 2 |
The Evolution of Finance for an Invention or Great Idea: Money sources and inventions evolve correspondingly. Inventions from independent investors seldom reach the market - mostly due to lack of money for promotion after they invest in a patent. Avoid misspent money. The one outstanding reason inventors are turned down in their quests for finance. |
9 |
| 3 |
Early Sources of Finance: The five main sources of personal finance. The five sources of savings. Forms of exclusivity other than a patent (in cases where a patent is unaffordable or not obtainable due to prior art). |
31 |
| 4 |
Borrowing from the Bank: Banks as equity lenders. Money from the SBA (small Business Administration); is it possible? All banks are not created equal. |
53 |
| 5 |
Strategic Partners: Investors of services and resources other than money. A solid plan is essential. "Solid" means following the profitability proof sequence. Job shops as manufacturing partners. The key to attracting and holding strategic partners. |
63 |
| 6 |
Financial Partners: Nearby Angels: Nearby (nontraditional) investors are all around. Finding and approaching nearby angels. Using the simple quantity principle. Up-front about risk. |
87 |
| 7 |
Financial Partners: Remote Angels: Remote only in our imagination - average about 8000 per state. Do money brokers really get results? Why the red carpet many put you in the red. Sources for finding angels. Venture capital is not for most inventors |
93 |
| 8 |
Communicating with Angels: The letter; the prospectus; the executive summary; the business plan. Judging extraordinary profit potential. The time-proven AIDA formula for convincing your finance source. |
101 |
| 9 |
A Model Prospectus: The sacred and only purpose of a cover letter. Your prospectus is your quest for money as your resume is to your quest for employment. Creating desire by appealing to the investor's motives. How to design pages that keep your reader reading. What angels really want from their investments. |
123 |
| 10 |
Beyond the Angel: Your (and your angel's) essential exit strategy. The five "big league" sources of funding. Cashing out by taking your company public. |
129 |
| 11 |
Preparing Your Business Plan: Why the usual business plan model is excess baggage for the startup. Don't begin with a summary. discovering your invention's "unfair" proprietary advantage. The single most important element in getting funds. Angels don't always fear to tread. |
141 |
| 12 |
A Model Business Plan (Short Form): A practical, easy-to-imitate model for investors and others with a great idea. |
157 |
| 13 |
A Brief Summing Up: Inventor: "I need money." Investor: "I'm looking for a good product." In a Perfect world they would find each other easily. Solutions for an imperfect world. |
167 |
| 14 |
Resources: Magazines; books; internet sites; patent attorneys and agents; not-for-profit organizations; invention trade shows; design and prototyping services; marketing services; manufacturing services; licensing agents; patent searches; mentoring services; angels. |
171 |
Excerpt:
Chapter One
Forethoughts
As I coach inventors, and listen to their problems and frustrations, I hear the same theme again and again: "I don't have any money. Certainly there must be people who are willing to finance my great idea, aren't there?"
The answer is yes. But sadly, most independent inventors never find the people who would review their invention or great idea, and maybe provide enough money to develop it and protect it so that it is marketable (licensed for royalties, or sold outright). The irony of all of this is that there is more money available for truly great ideas today that ever before. Corporations are regularly downsizing, and many men and women find themselves either looking for a job, or looking for a business to go into. In such times the job market is not only highly competitive, but the younger men and women - especially those who have recently graduated from college - are willing to work for less money than their seasoned counterparts. This significantly increases the pool of older workers who can't find a job, and are considering starting their own business.
Many of these seasoned workers have been "downsized" by way of compensated early retirement, also known as a buyout. Many have cash or stock that can be converted to cash. And many have always wanted to get into their own business. (One author says that instead of an up-to-date resume in their top desk drawer, executives nowadays have a business plan.) Further, the present-day general suspicion of the corporation, brought on by the likes of a certain infamous corporation and its"creative" accounting practices, has dampened the dreams of many an otherwise compliant executive. Restoring the glamorous image of large corporations may take decades. Meanwhile, senior executives are contemplating their next move. Those in their fifties often have paid off their mortgage, put their kids through school, and have acquired most of the high-tech "toys" that give them comfort. What they need now is a fulfilling sense of purpose - something more than television or fishing or gardening - to challenge their time and years of experience. They have the money and the business acumen, and you have the potential product. Here are the makings of a win-win situation that may be the basis for obtaining the money you need to launch your invention or great idea.
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