You have a great business idea. In fact, in the 5 years you've had this idea, you can't believe no one else has come up and out with it. Just to be sure, you have even vaguely mentioned it to a few trusted minds to see if they would respond affirmatively and, they did. One year, you went so far as to speak with a few professionals about pursuing such an idea and were sure to stress to each that you didn't really have the know-how or financial resources to back the idea up, but if someone else would take it to market, you are certain it would be worth their time and, of course, their money. So what gives?
No matter how many times this dilemma is posed, the answer is virtually always the same: In order to get someone to invest in you, you must first invest in yourself. Would you put your neck on the line for someone that wasn't willing to do the same for themselves? If the answer is yes, call us. We have a number of people that would love to talk with you. If the answer is no, read on. . .
Now, what you invest (both in terms of time and money) can range dramatically and, should be part of a well thought out plan that depends, in large part, on your final goal. For example, if you wish to limit your personal liability, although you already know that a family member will fund your concept, perhaps you will only seek to establish a legal entity from which to operate your business and may further dabble in the idea of securing various intellectual property rights. Alternatively, if you are seeking a loan from a bank, you might wish to approach the financial institution with a more mature company that has established some credit and therefore, some credibility that will afford it a lower-risk image, along with a detailed business plan. Or, perhaps you're interested in working with independent investors who will take a piece of your company in exchange for some capital or, less likely, a note, but to gain their interest you need a full blown private offering memorandum, at a minimum.
Whatever your chosen course of action, and even if that action includes your having a hand at any or all of the selected process, it is important that your business plan has a business plan. WHAT?! ANOTHER PLAN?! Yes, another plan. However, this one is more of a term of art that is focused mainly on strategy, supplemented by time and money management. Think of it this way: how can you know where you're going, if you don't know how you'll get there?
Here are just a few key factors to consider when determining if and how you can bring your concept to market, be it a product or a service:
1. Is there a demand, need or room in the market for your concept?
2. Should you incorporate?
3. Are there patents, trademarks and/or copyrights that should be secured?
4. Do you need a business plan or a private offering memorandum to attract financing?
5. Do you need to develop a business team to help effectuate your goals and give your enterprise more credibility and therefore, be seen as a less risky venture?
6. Do you need a confidentiality agreement to protect your idea from those that you share it with?
7. Who will be your target market audience?
8. How will you market and advertise your business and/or product and how can you differentiate it?
9. Are manufacturers and/or distributors necessary?
10. What other sort of agreements will you need? (i.e., licensing agreements, lease agreements, independent contractor or employee agreements, etc.)
Seeing your idea streamline through commerce can be a very rewarding accomplishment! Whether your idea realizes itself into a product that sits on store shelves and sells by the truckload or materializes into a store front that provides products and/or services to the public, it is most certainly something you can be proud of. However, and except for the few charmed people we have all come across where everything good always seems to fall right into their laps, most of us have to work hard to get what's coming to us. . . or do we? Perhaps with some planning and an investment in ourselves, one day we will find ourselves working smart, instead of hard!
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"Anthony J. Spotora, Esq. has been called "the cure for the common lawyer". He has an extensive background in Business/Corporate & Entertainment/IP matters and is the managing attorney of his full service law firm that also practices Family, Real Estate & Criminal law. He was a nominated "Rising Star" in "SuperLawyers". Mr. Spotora's firm has been named a "Unique Legal Boutique". http://www.spotoralaw.com
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