An entrepreneur created a new “sleep nutrition” bar. After investing a couple hundred thousand dollars on this startup dream they were selling fairly well on Amazon and got some attention from Paula Abdul, Cheryl Hines, and other celebrities. This traction led to test market offers from the likes of Target, Walgreens, and Rite Aid to name a few.
While this sounds like an entrepreneur’s dream come true, in reality this was a dangerous offer without adequate capital. Buying enough product to stock these store’s shelves is just part of the dilemma as without a proper advertising plan, no one would know the bars existed. If the bars did not sell, the test fails AND the entrepreneur must take his stock back.
Capacity Business Consulting was engaged to assist the entrepreneur in securing investors to put in the necessary capital. We were engaged to do Funding Preparation™ which prepares the entrepreneur and his business in the way expected by investors.
If you have seen the ABC hit Shark Tank, you know how hard landing an angel investor is. We prepare the business plan, proforma financials, valuation, and the entrepreneur to have the best chance of winning an investment whether it be from investors, friends, family, or a combination. A one pager pitch sheet is prepared showing the 10 areas an investor wants to see and a pitch deck is assembled for live presentations.
As a result of these tools the entrepreneur has been invited to pitch to multiple parties. He has entered into due diligence (a sign of serious interest) with some and secured commitments from others. Keep an eye out for this great new product at a store near you!