I wish I could read about more in your blog about how to find an investor for a start-up company. This is a forte for you correct? Why don’t we hear more about it?!

Let me tell you something, getting into the retail industry is difficult and kind of stupid, unless you have a lot of money or a great idea. My friend has a great idea, but not enough money to grow it beyond a craft fair thing.  She started a mitten business about 4 years ago — she even created the entire mitten design.

This year is her fourth year in business and she has been accepted to a major, national crafts show. She wants to go to more of these large craft shows, but she can’t find a way to invest into the company to keep up with a high demand and streamline her process for these socks.  I’ve told her she needs to create an online store, but she’s nervous about the amount of money it will cost and if she can keep up with demand.

So, what are the next steps here?  How do we find an investor without going on some stupid TV show?  Any thoughts or cares in the world for a little start-up that has huge possibilities?

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1 reply
  1. Penelope Trunk
    Penelope Trunk says:

    Questions for you:

    Can the mitten business generate $100 million in revenue in the next five years? That’s what investors are looking for. If the answer is yes, write back to me and we can talk about how to get funding. If the answer is no, then there’s no funding.

    Investors have a complicated math problem that guides all their investments – but the bottom line is they are looking for very high risk/ very high reward opportunities. I think the mitten business is a lifestyle business. That is, it is a business that can support five or six people really really well and maybe one person will be a millionaire. But for investors, this is a really small business.

    Does this make sense? She should just grow the mitten business slowly and be thankful she’s supporting herself in a way she enjoys.

    – Penelope

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