Comments on: The Dreaded Elevator (Cocktail Party) Pitch

By: 1st Time Entrepreneur – Introduction | Twin Amzalags and a Leal

1st Time Entrepreneur – Introduction | Twin Amzalags and a Leal — Fri, 29 Jan 2010 05:18:24 +0000

[...] Over the next 3 months I will be writing a series of posts on topics ranging from the art of the elevator pitch to great books recommended by successful and knowledgeable entrepreneurs. Finally, I’d like to [...]

By: Shane

Shane — Wed, 22 Jul 2009 20:47:50 +0000

Again, fantastic advice for a first-timer completely new to the game! I look forward to reading more posts. Thanks Mark

Shane

By: Jeff Billings

Jeff Billings — Sat, 06 Jun 2009 19:42:05 +0000

I will prepare the pitch and practice it. Thanks for the guidance.

By: marksuster

marksuster — Sat, 06 Jun 2009 18:53:45 +0000

Thanks for writing, Jeff. If you’ve already gotten product started and understand your market opportunity I think it’s the right time to raise money. Define a plan for what you’re going to do with that money (how will it be spent, what expected benefits or ROI and what the investor will get in return). Investments at this stage are usually for equity (e.g. ownership in your business) rather than money you pay back (debt). Raise small, raise from friends & family or local angels. You probably don’t want to go out for “professional capital” until you’re a bit bigger. Good luck!

By: Jeff Billings

Jeff Billings — Sat, 06 Jun 2009 18:23:20 +0000

I am quite thankful for the guidance in the list. I have been an engineer, executive and a businessman for years but I have never had to raise capital myself. Having a description of the “Pitch” process in less than 300 pages is amazingly valuable. Brevity is the soul of wit.
I saw you on your money and tried to call in with the following question – How do I know when to raise money?
We have a business that manufactures card games and board games. (No I am not out of my mind, just passionate about games and manufacturing.) We have solved the inventory management problems and We can now produce products in quantities of 3-10 (our competition needs to produce 2000-10000 units and has a 3 plus month build to inventory cycle) at COGS of 20% of retail. We are competitive in price and comparable in quality (even superior in some cases). Our sales are worldwide with 35% of revenue coming from outside the US. We are struggling at the point of execution most of it tied to investment in marketing and some product development. We have no debt and have paid for our factory in cash infrastructure.
I am having trouble figuring out if we just keep our head down and grow the business or risk taking our eye off the ball to seek capital. The risk reward question seems really critical.

By: Mark J. Landay

Mark J. Landay — Sat, 06 Jun 2009 13:02:20 +0000

Mark,
As usual spot on and needed advice.

Best Wishes,
Mark J. Landay
mark@dynamicsynergy.com