Funding The Business

Funding

Note that this only applies to the initial service phase of the business. There is no

consideration here of a possible future step of transitioning this service line into a product. This

is a technology secret.

When it comes to business finance, I am still a novice on the subject, although a bit more knowledgeable on the subject now. I think even a seasoned business finance professional may be challenged with funding what I am planning. As for the friends and family option I do not believe in mixing these relationships and business unless there is a true shared passion for the endeavor. And even still proceed with caution and an understanding that business is business and risk is risky, but friends and family, hopefully, will remain forever. Now you might understand the problem, as I see it, with friends and family as a source of business startup funding.

Now other options are possible but will be an artful maneuvering of strategic fragility. But don’t tell the investors. I had to get a little humor in. Here is the plan. I am trying to create a service that both produces and transports parts in one action, thus the name TeleProduction. It is a simple concept in that manufacturers produce and distribute their products, or they don’t make any money. I want to fund a startup company that does both in one service. The funding may be easier than I think on conceptual merits. But the barriers to entry are uniquely challenging although it may be an entirely new market, as conceived.

The barriers to entry must be considered before an approach to funding can be determined because there are definite factors that will affect funding options. When offering an alternative service to one that is already in use and in demand, there are obviously barriers to entry here. The competition could make things difficult. So, I had to consider the situation here by answering some questions as follow. Who are we competing with? For what services or business are we competing? The answers are: We are competing against the manufacturers with an alternative to manufacturing on some products. And we are competing with the manufacturer and / or shipping companies for the shipping business for some products. But this only applies to long distance shipping. The local distribution services will still be needed.

Now that I have defined the majority of the competition lets brings them into the deal and have them fund the wall, or the business startup, in this case. The danger here is proposing to bring them in risks them taking over and implementing this service themselves. They do have the resources to do so without a doubt. Without sharing the details, this is where a patent comes in for the to-product stage of this launch. But this is the next stage. For the service I will select prominent manufacturers that produce the types of products for which this service would make sense and offer the following proposal. If they are interested, exclusively, or collectively, they would fund the startup with conditions. They have exclusive rights (as a group or single entity) to the service for the first location, a pilot location. This location also serves as a pilot location for the already patented product version of this service. This pilot location runs for a predetermined length of time. At the end of this time frame the business, TeleProduction, owning the patent, takes full ownership of the product side and grants the product production contract to one or more of the manufacturers. The continued ownership and operation of the pilot service production site is negotiated at this time. If still viable as a separate service, it will be continued. If not, it will be turned into a functional support unit for the product version of this service.