I am looking for serious and intelligent investor(s) for my custom guitar/amplifier/accessory business. The potential returns are not only very real, but in truth are very great. I have spent 5 years desigining new products that are in the process of being submitted to a development company as well as being patent searched. I build all customs, no off the shelf instruments that are superior in quality and playability to most every other manufacturer. It is all in the details, as well as the innovations and the passion for the instruments that sets my instruments a large cut above all others.
Here are a few facts: Guitars are the number one selling instrument in the world. Most guitars, including most so called customs, are mass produced and the quality of the instruments are quite variable. The Fender Stratocaster and it's variants are the #1 selling guitar worldwide.
I not only design and build customs, I customize my customer's instruments, customize and build custom tube type guitar amps, effects pedal boards, and have designed and am developing several innovative electric guitar parts and accessories.
I have tried to locate funding to expand this part time business into a full time one, and am looking for genuine, intelligent, forward thinking, and open minded investor(s), who are willing to not only look at this opportunity, but take action. Will gladly send e-mail photos, sound bytes, etc., of my work, predicated on the signing of the appropriate confidentiality agreements so as to protect my innovations and designs.
#1. "RE: Serious and intelligent investor(s) sought" In response to Reply # 0
You're obviously enthusiastic about your products and there's little doubt that the market is big enough to be successful in it but as an investor I want a roadmap. I want to know how you're going to market the product, how you're going to deal with competition etc.
It's a big leap to go from a hobby business to a well funded full-time operation...I said big, not impossible or improbable.
From an investors point of view, I have little interest in guitars in general, less interest or knowledge in differences in quality etc. For me, it's all about the bottom line. How much is it going to cost me, what's my return going to be, and what are the risks to my capital. For an investor to be able to answer these questions you'll need a well thought out businessplan. Your plan should be for yourself and how you'll address these things for your own success...don't research and write it based on what you think investors want to hear. It's about what you need to know and do. If it covers that...the answers the investor needs will available in it. Good luck
#2. "RE: Serious and intelligent investor(s) sought" In response to Reply # 1
Thank you for your input. I have already started the business plan process, and am currently working with a patent company that is assisting me in the patent search, registration, and trademarking of my tremolo system as well as my new designed pickups for electric guitars. Yes, it is a difficult climb from a part time business, to a full time one. And yes, there are many hurdles to leap.
As for the bottom line, that would depend on several factors, such as whether I license my products for sale and outsource them to such companies as Fender, Gibson, Di Marzio, who already have the infrastructure in place to mass produce my products with minor tooling modifications, or whether I were to do it all "in house". I am opting for the first as while I may not make as much per piece, these are meaty players who hold the lion's share of the market, and already have the well established names and reputation for high quality products. Rather than fighting the competition, I prefer to work with them and utilize their assets and benefits to further my own success and that of my business. It is far easier and cheaper for them to mass produce, than it would be for me to do so from scratch.
That said, I am hoping to sell my products to one or more of these big guns on a limited rights basis, wherein they are licensed to produce and sell, but I would receive a reasonable percentage of the gross profits from the sale of each piece. I believe it is called economy of scale. If I can produce 200 tremolos per year from scratch, with a retail value of $245.00 each, and a hard cost of say $100.00 each, then my gross profit is only $28,000.00. But if I can get say $10.00 from each unit and say Fender produces 250,000 of them as both factory installed units, as well as replacement parts, then I turn out $2,500,000.00. I believe that a percentage of something is better than all of nothing.
As you brought up, you aren't well versed with all the technical aspects of the instruments or exactly what goes into them, and in truth, you are not alone by any means. Most investors are not well versed in the technical aspects. I, on the other hand am quite the opposite. Well versed in the tech part, but not so well versed in the investment/funding/ financing aspect. I can tell you what the parts and designs do, and why they will sell like gangbusters once they are marketed. I know what players are looking for in their instruments, and they will gladly shell out for anything that will increase their playing level, comfort level, tone, sustain, and sonic accuracy of their instruments.
With that in mind, I need as much info as I can get, as to the best way to approach and find truly interested and qualified investor(s) who are not out to rip me off. I have tried on 3 different occasions with 3 different so-called investors who were all nothing but frauds, wanting nothing more than to steal my inventions, or soak me for what monies I had available to further the progress of my business. In the interim, I have been acuiring the tools, materials, and equipment to build my own prototypes, field test my instruments by having other professional musicians play them live as well in the studio, utilizing their input to further refine my designs and products to be the highest quality possible.