Re: Do I need an investor / partner?

Hello Rich,

Actually, some people have connected with angel investors through the
classified.

Finding funding requires the same kind of marketing effort as for marketing
your product so expect to spend a lot of hours reaching out to people with
surplus funds to invest.

Keep in mind you will want to prepare a credible business plan which allows
potential investors to determine whether or not they wish to take the next
step of formalizing an investment.

As a technologist, keep in mind that not all investors put money into a
project for the same reason. Many do so for the sport of the hunt and are
more interested in your potential rather than that of a single product.

There are many good books on marketing software (and general marketing) at
your local super bookstore. As a general rule of thumb (assuming your
product is as hot as you think it is), you can bootstrap your new business
by handling the sales and marketing yourself or you need to invest a
sizeable chunk of capital for others to do it for you.

You probably should take some time to determine the best channels of
distribution for your product (and make sure margins are correct for each
link in the chain). People often ignore the sales and marketing costs
associated with each link.

You should also consider attending trade shows. Many distribution deals are
completed at such shows.

Another option is to find a compatible established software company and
license your product to them. You get a royalty and they market your
product.

A few thoughts.


-- 
J.P. Solyom, B.Sc.E.E., M.B.A.
KS Business Development
Sales and Marketing Solutions for the New Economy
powerSales & mailSHOT - When you need a steady stream of qualified prospects
(253) 272-0996  [EMAIL PROTECTED]


On 9/3/03 9:55 PM, in article [EMAIL PROTECTED], "Rich"
<[EMAIL PROTECTED]> wrote:

> 
> I quit my job as a lead software developer and have been making a
> comfortable living at home for the past 2 years. Aside from my main
> income, I have developed a software product over the past year that I am
> now trying to market. It has a very good market, and I have a decent web
> site (the domain alone is appraised at $50k). I have forecasted $800k
> sales the first year if I could only get going! That's probably an
> underestimate.
> 
> It has come down to selling the product and I am stuck. So just take off
> three zeros from my forecast. But I know the market very well.  Since I
> am short on advertising funds, I thought that magazine reviews and an
> affiliate program would do the job. So I sent out a press release,
> emailed 8 trade magazines for review, sent out 1,500 emails to top sites
> asking them to participate as resellers for 50% commissions... even
> faxed some of those. No one is beating my doors down. Only 5 resellers
> signed up so far. I don't have extra money for advertising. The product
> I sell is for the general public and sells for $400.
> 
> Is this an appropriate time to look for an investor? I have run out of
> ideas for getting "free exposure" for the product. If so, where do I go
> to find an investor? The local classified ads?
> 
> Rich
>