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Source Direct, 2017 – TheSourceDirect.net 888-373-3876, x.213 – [email protected]
Fundraising Manual – For Inventors! Are you ready to move forward with your product? Call us today at 888-373-3876, x.213! TheSourceDirect.net Email: [email protected] Manual Prepared by Nathan Daugherty, Marketing Director for Source Direct
Source Direct, 2017 – TheSourceDirect.net 888-373-3876, x.213 – [email protected]
Fundraising Manual – Source Direct Need help? Call us anytime! 888-373-3876
Are you stuck at the fundraising aspect of your project? Never fear! Raising that final amount of money for your project may seem challenging, but there are many resources available to make your goals a reality! There are a few things you need to prepare before pursuing funding:
Have your product specifications ready. Investors, family members, friends, and neighbors who may help you financially will want to see what your product will look like and how it will function.
Set goals that are realistic for your product. You will have an easier time reaching your desired success level if your goals are realistic. If you product is in a niche market, do some research to see how similar items have fared in the marketplace.
Know the funding goal. Asking an investor or donor to give money without knowing what your goal is could make or break your project goal. Compile all of your needs and expenses – you may need to present these findings later.
Now, it’s time to decide how you are going to raise the funds! There are many different avenues for fundraising of an invention: 1. Crowdfunding – Gaining capital through the method of crowdfunding has become a very mainstream way of reaching goals. There are many different companies offering crowdfunding, with a variety of options. On page 3, we will explain the top 3 crowdfunding resources.
2. Investors – Pitching your product to investors is a great way to gain operating capital. Offer shares of your company to investors! For example, you can offer packages of 5% share of your company for $5,000, and sell what you need to reach a comfortable level. Make sure you have a PROFESSIONAL pitch ready to go at all times – this will insure your success with investors.
3. Asking Family/Friends/Neighbors/Colleagues/Employers – Use your sphere of influence to raise the money you need to get your product moving. The people in your life that care about you will be willing to assist you if you have goals set in place. Most inventors receive their first round of funding from a rich relative, inheritance, or even wedding present cash!
STOP RIGHT HERE! Here’s a great piece of advice! Licensing….probably won’t work out! – Some inventors have asked us if licensing is a good route to go for their invention at the beginning, if they are having trouble with securing the capital to move forward. In our first-hand experience, licensing may not work for you if you haven’t ever sold your product before! Licensing companies want to see sales success before taking on a new product. Work with us, get a test order, and build some notoriety before attempting to get a license! On the next page, we will discuss the different crowd-funding platforms!
Source Direct, 2017 – TheSourceDirect.net 888-373-3876, x.213 – [email protected]
Kickstarter – This is the most popular, I have seen, for Invention funding. A few things to know:
Firstly, it’s an all-or-nothing method of fundraising. If you do not reach your funding goal, you wont get any of the funds pledged. Secondly, there are also fees associated with it – Kickstarter takes 5% of the funds off the top, and then there is also a 3% and $.20 per pledge fee for payment processing (fee breakdown – citation here). Though Kickstarter is the most popular, you may want to avoid it if you don’t necessarily have the largest following and support backing.
Indiegogo – Indiegogo is a pretty substantial platform for Crowdfunding, alongside Kickstarter. From the
Indiegogo website, “It is free to sign up, to create a campaign, and to contribute to a campaign.* When your
campaign raises funds, Indiegogo charges a 9.0% fee on the funds you raise. If you reach your goal, you get
5.0% back, for an overall fee of 4.0%.” There are a few more fees to pay, and different tiers of funding.
Source Direct, 2017 – TheSourceDirect.net 888-373-3876, x.213 – [email protected]
GoFundMe – Finally, the 3rd Crowdfunding source I’d like to go over is GoFundMe. Probably the
easiest of all, this platform just deducts 5% and $.30 per donation, and a 3% processing fee for payments
(fee structure here). The fee structure is very similar to Kickstarter, however, you get to keep any and all
of the funds that you raise, even if you don’t reach your goal. GoFundMe is growing in popularity, and has
claimed to have raised $1.2 billion in donations since it’s inception.
Utilize Your Following! If you are going to pursue raising the money necessary to make the project a reality, do not be afraid to pursue your personal sphere of influence. If you properly present your idea, it’ll make a compelling story for the people in your life! Successful crowd-funding campaigns come to fruition by an initial kickstart from friends/family/co-workers/employers/etc. YOU have to promote your cause. A crowd-funding campaign will not be successful without effort on your end.
Websites for Fundraising Possibilities Here are some websites you can refer to when making your fundraising campaigns:
Kickstarter.com
GoFundMe.com
Indiegogo.com
Fundly.com
CrowdRise.com
YouCaring.com
GET A VIDEO! If you decide to go the crowd-funding route, you need a high quality video. A cheap homemade video very
rarely works! Get a company to help you create a 2 minute video that shows your product in a positive light
and tells the story! We can help you with that too – we’ve seen success from high quality videos.
Source Direct, 2017 – TheSourceDirect.net 888-373-3876, x.213 – [email protected]
Successful Crowd-funding Example – Gotta Potty! Recently an inventor through Source Direct was able to raise over $26,000 using Kickstarter! We helped
the owner, Shane, prepare his pitch and properly promote his product. 174 backers helped make GOTTA
POTTY fly off the shelves! It took lots of work, but it paid off!
Final Thoughts from Source Direct Raising the money needed to make your project a reality is within your reach! Make sure to use all resources described in this manual to help you reach your goals. With the use of crowd-funding, investors, friends/family, and colleagues, finances will no longer prevent you from making your dreams come true. Great products that change the world start with a compelling back-story - Let this be the next chapter in yours! Source Direct is prepared to help you reach your inventing goals, and we hope this manual has shed some light on the process of fundraising! If you have any questions, or are ready to move forward with your project, please call 888-373-3876, x.213, or email [email protected]! Thank you!
Nathan Daugherty Client Networking Director/Sales Manager Source Direct 888-373-3876, x.213
The next pages in this guide are a sample business plan! Utilize it as a tool to create your own business
plan for your product/company!
EXAMPLE BUSINESS PLAN
YOUR BUSINESS NAME HERE Spot Production Pg. 16 Northern ResponsePg. 17-18 Media Test Pg. 19 QVC / HSN Pg. 20 Club Clean Distribution Pg. 21 Golf Distribution Pg. 22 Latin American Distribution Pg. 23 Retail Sell Sheets Pg. 24 Dr. Gadget Pg. 25-26 Pricing Strategy Pg. 27 Financial Plan Pg. 28-30
Executive Summary Pg. 3 Mission Pg. 4 Keys to Success Pg. 5 Company Summary Pg. 6 Management Summary Pg. 7 Product Information Pg. 8-10 Production Strategy Pg. 11 Source Direct Pg. 12 Market Analysis Summary Pg. 13 As Seen on TV Pg. 14 Catalog Submission Pg. 15
Executive Summary
Objectives
In this section of the business plan, you’ll include your executive summary and objectives for your product/business.
Page 3
Mission Statement Example
The company’s mission is to help every golfer improve their putting skills and create a profitable business that will provide a vehicle for introducing other simple inventions to the market.
We also wish to demonstrate that simple inventions can be brought to market successfully by bringing together the
necessary expertise in a co-operative style business model.
Page 4
Keys to Success
• Early identification of channels to market so that the product can be introduced and distributed quickly.
• Close collaboration between design and manufacturing to deliver best quality at a price that will enable the product to be distributed profitably.
• Making best use of its chosen business partners to exploit their competitive advantages to ensure speedy profitable deployment of marketing and sales plans.
• Positive response to initial Direct Response Television program.
• Efficient early distribution on line followed by rapid penetration of specialist golf outlets and mass retailers.
• Sales of at least 5000 units in the first year.
Page 5
Company Summary
In this section of your plan, you’ll include your company summary. Who runs the company? What are your goals?
Include everything here!
Page 6
Management Summary
(manager name here) will oversee all product design and manufacturing and general management of the company’s affairs. (manager name here) has a PhD in Physical Chemistry and worked in research and development
for ARCO Chemical, a Division of Atlantic Richfield. His current interests are playing golf, photography and inventions
(manager name here) worked at Ford Motor Co. in a number of positions with emphasis on the solution of engineering problems.
(manager name here) will oversee finance and marketing and liaise closely with the company’s business partners Source Direct and Club Clean both owned by Mr. Ed Mauro. (manager name here) is a corporate executive who has extensive US and international experience as a CFO, CEO and
Company Chairman.
Page 7
Product Information
The Eyes-Over-The-Ball (EOB) Putting Aid is a color-coded stance indicator that aids golfers in improving their game. The device
offers a new approach to correcting poor putting strokes.
The first step is to evaluate the golfer’s putting stance: are they standing too far from the ball? The majority of golfers fall into this
category. Alternatively, are they standing too close to the ball? Only a few golfers fall into this category.
Secondly, the device leads the golfer to the correct stance that is with eyes directly over the ball. This position allows the golfer to
swing the putter back and forth in a straight line with a pendulum–like motion.
Page 8
Product Information
The EOB consists of four components:
• A U-tube that attaches to the putter shaft.
• A second adjustable U-tube into which the base slides.
• A brass pin that allows the flapper to swing freely.
• A color-coded flapper.
The unit is:
• Simple.
• Easily attached and removed.
• Fits all putters and is adjustable for left or right-handed players.
• Inexpensive
The EOB is being manufactured in China through Source Direct a Florida based company.
Page 9
Product Information Page 10
Production Strategy
The product was re-engineered to reduce the cost of manufacture and to meet certain marketing requirements.
At this time the molds are being manufactured and initial proto-types should be available within three weeks.
It is expected that these units will be tested in the field and any necessary modifications to the molds made so that the
initial factory production can take place in September/October 2012.
Product delivery is expected in November 2012.
Page 11
SOURCE DIRECT™ handles all logistics from product concept to completion.
An American company with offices in Tampa, Chicago, Hong Kong and ZhongShan, has been helping companies and individuals manufacture goods for over 20 years. They’ve solved the
logistical nightmares of dealing with the ongoing issues involved in producing a product. SOURCE DIRECT™ has over 100,000 sq. ft. of warehouse space to assist in the US distribution of any product. Our highly accomplished team includes US trained electrical and mechanical engineers, marketing and packaging specialists, as well as years of experience and expertise
in manufacturing and selling products.
Directs Services Include:
> Delivery > Product Development
> Design Engineering > Quality Control
> Door to Door Service > Sourcing
> Logistics > Tooling
> Manufacturing > Warehousing
> Order Processing
Page 12
Market Analysis Summary
Strategy and Implementation Summary
Following the invention and production of the original Eyes-Over-The Ball device and subsequent proof of
concept a small batch of devices was produced to elicit some market feedback.
The original device has a patent pending status and recent design revisions will be incorporated into the patent
application.
Page 13
www.asseenontv.com is the official website of As Seen On TV products with over 40 Million page views per month.
Program benefits and costing: 1) Term: 1 year (will auto-renew at no additional up front fee if converting) 2) 2 separate e-mail campaigns served out to ASOTV customer base. (One in March one in Q4) 3) Home page placement in New Arrivals section. 4) Creation of graphic intense landing page with video (if video asset exists). 5) Integration to ASOTV shopping cart and master system. 6) Order Flow: ASOTV processes orders through their merchant account, sends a PO to client along with their UPS account number, client ships bulk case packs, pallets etc. to ASOTV distribution facility, ASOTV fulfills to consumer. 7) Start date: Offer will be live on website in 10 business days from receipt of digital assets.
The above is a perfect fit for your product as it: 1) Fits your budget 2) Gets tremendous exposure 3) Generates sales and consumer awareness 4) Generates retail buyer awareness (Walgreen’s, Target, Kmart, Walmart, etc.). Retail buyers use this site as a barometer to see what new hot products are out.
As Seen On TV Page 14
**Full catalog list available upon request
Catalog Distribution Page 15
**Sample of previous spots may be reviewed upon request
EOB will receive two edits of a Direct Response TV spot. The two edits produced will be a 120 and 60 seconds in length. In addition, we will provide a version of the spot without an
offer to be used for ASOTV video as well as the EOB website and social networking.
Process and Timeline
Upon contract signing, a scripting call will take place within five (5) business days. EOB will receive a first draft script for discussion purposes. Pending EOB’s review, a
second scripting call will be scheduled at which time all revisions will be made allowing us to send a final version of the script for EOB’s final approval.
Once the script is approved, EOB will be moved into the production schedule, footage shot and edited for final review.
Click On a Link Below to View Product Videos
https://p3files.sharefile.com/d/sf62542e268d4fea9 Weed Blaster DRTV (60 sec) https://p3files.sharefile.com/d/s2ec22e5fdb54647b Rockboard Mini - Toys R Us (30 sec) https://p3files.sharefile.com/d/s6eff38b203748638 GloveLite DRTV (60 sec) https://p3files.sharefile.com/d/sa693de7cd2f4e5eb Belly Bean DRTV (60 sec)
Direct Response TV Spot Production
Page 16
Northern Response will help you achieve rapid global distribution while maximizing sales at no cost to you: - 22 successful years pioneering the industry - Largest distributor of infomercials in Canada - Fastest retail placement - Better shelf positioning and stronger sell-through - Distribution to over 90 countries - Proven track record of success
Northern Response handles the licensing and distribution of infomercials, DRTV spots and product placement through four sales divisions: DRTV, Retail Sales, International Distribution and Internet/Database Marketing.
Northern Response has an international product base. Once Direct Response TV spot is created and approved, their clients pay for foreign language dubbing as well as international media. They purchase product wholesale FOB X Factory and sell into retail brick and mortar as well.
Northern Response Page 17
Direct Response TV: Move more volume and drive retail sales. Northern Response has got the widest national market coverage. Retail Sales: Northern Response's Retail Sales strategy is simple - more placement, more often in every major retail store. International Distribution: Get the most comprehensive international coverage by leveraging the Northern Response network of thousands of distributors. Internet Marketing: Northern Response spends millions of dollars promoting products through every available online sales channel.
Northern Response, cont’d Page 18
We identified the appropriate networks to hit EOB’s target demographic and will secure media over top-rated national networks. Additionally, we will secure media via
P.I. (Per Inquiry). In this scenario the spot will be served out over top participating networks for no cash up-front and a back-end revenue share on gross sales (not
including S&P). We are currently working with all 6 ESPN channels, Golf Channel, Fuel, Fuse and more.
**Complete list available upon request
Media Test Page 19
Having secured vendor numbers for both QVC and HSN respectively, we will submit the product to the appropriate buyers. We will further assist in the approval process from first sample sent through quality
assurance to air dates.
Home Shopping Network (HSN) vendor systems prove to be difficult to navigate and we will assist throughout the entire process.
QVC/ HSN Submission Page 20
The design an creation of hi-resolution hard copy sell sheets as well as digital versions which may be e-mailed to interested distributors and retail buyers is
important. All buyers, from on-line to brick and mortar, will request professional sell sheets accompanied by samples of your product. These sell sheets contain all
information needed for a buyer to make an informed choice resulting in purchase orders/sales.
Sell Sheets Page 24
Pricing Strategy
The MRSP is set at $19.99.
Direct response TV might do “buy one get one free” or similar promotions.
On line web sales will offer the product at $19.99 with some discounting for volume orders and special
“shipping offers”.
Pricing to big box outlets and other mass retailers will be by negotiation.
Page 27
Financial Projections Page 28
Financial Projections Page 28
Financial Summary Page 28
Trading projections
Unit sales are predicted on the production in November 2012 of a direct response TV commercial and the subsequent roll out to other distribution
channels.
Although some sales are expected in 2012 the initial production of inventory is set for November delivery so any delays will impact sales in
the 2012 year.
The projections show a loss in 2012 of $12k and a profit in 2013 of $330k
Additional equity/loans of $30k is being sought in 2012 to fund the TV commercial. The company has sufficient funds available to complete the design and initial production run but will require additional working capital to support the growing sales. However on current projections the company will be cash positive through to the end of 2013.
