Funding Question

GetAGrip

I am looking for help in finding a partner for a upcoming infommercial that we are doing.  We are a successfull company with a very successfull product, however we did not realize how much money we would have to raise for air time or production of a 60 sec. spot.  If anyone has any advise for quick investors, please advise.  Thanks in advance to everyone.
 
 
Trent Rousey

GetAGrip

Craig,  That was kinda my point by starting out by saying that my company and product was successfull, and that is the case.  After production of the video and airtime, my inventory will have to be replenished due to the current orders and clients.  Thanks for your input.

GetAGrip

Craig,  We already have a company to do production of the 60 sec. spot, we are looking for capital, with the incentive of profit sharing.  Thanks, I hope someone can help.  Thanks....Trent

drvag

Craig is right about VC`s.  A good resource.  They are typically focused on ROI and risk.  Still not a bad resource if you don`t want to assume all the risk and give up some of the earnings.
My suggestion would be to go to your banker.  Do you have a line of credit?  Can you increase it?  OR more importantly...By now you should have a close relationship with a banker and if don`t, you should be building one.  It takes time.  If you have excellent payment history with your bank, he/she is usually more than happy to loan the funds necessary to a company that is "growing" and has been "borrowing and paying back those loans".  If not, find another bank.
Also as a courtesy to him, I meet with my banker at least yearly for lunch and give him an update on how we are doing and what I have planned (new products and working capital requirements) for the upcoming year or three.  Since he`s in the loop and understands my business, it`s easier for me to call him and ask for $100,000 for working capital.  AND because I have history and he knows I have paid all my loans back, ON TIME.
I also provide him a copy of my business plan.
Another tip, when money was tight or is tight, I always paid/pay the bank first and on time.

GetAGrip

Thanks, that`s very good advice.  We have a great relationship with our bank, I just always get concerned with increasing the already high bank note that I have, but it could mean getting rid of that debt with this project.  Thanks again for the advice.
 
Trent Rousey

robertj

Trent,
There are several possibilities including borrowing the funds from the bank. This will likely be the "cheapest" capital you can acquire - if you & the company can "handle" the debt burden.
Other options would depend a bit on -how much Capital you need.  You might also consider a revenue sharing offer - where the investor receives something on each sale. Sort of a royalty type arrangement. There are people who invest in these types of situations, but they may not be the "traditional" VC firms.
Note: This is selling a security - so you`ll want to get professional advice to ensure everything is "proper".

GetAGrip

Thanks everyone, the advice form everyone is much appreciated.

sagetrout

Trent,
 
This post may arrive too late but I have a contact who does infomercials with no upfront charges!   He gets paid with a "per lead" charge or he works out revenue sharing agreement with you, and he buys media time at a steep discount.  He has his own production facility to do the entire infomercial. 
 
I think he`s a terrific resource for companies that need radio and TV advertising exposure but can`t afford the usual steep charges to pay for all at once.   If you`d like his contact information please contact me.

EdwardS

You might also try spotrunner.com to see if it fits your needs.