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how do oyu find a backer
ok room i have a question i have this idea ,that i know is going to be really big for the hair care business,dealing with african american woemen,well all woemen if you wear big hair or extensions how do i find a backer to back me on this business venture or where do i start to get it off the ground. this is only for people who are business minded... ty
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If you have an idea that you think will revolutionize hair care, then you need to patent it. You can patent processes, techniques, inventions, and even the process used to create special chemical combinations. It costs on the order of $1,000 to file a patent, but once you do, you have the right to turn around and find someone *else* to develop and market the idea. You can sell temporary rights for the use of the idea, and if someone else rips off your idea, the law protects you.
Patenting a process, technique, or product doesn't mean you can't develop and market the idea yourself. But if the idea really is big and it catches on, you're going to have way more demand than you can easily fill unless you have access to mass production. If what you've got is a new hair extension technique, that's great if you live in NC but you won't be able to satisfy eager customers in CA or TX if what you're selling is more of a service than a product, because it requires you to be there. The smartest thing to do would be to patent the idea and then pitch it to a national chain or to someone who already produces and distributes products for your target customers. This is called "assigning" a patent: you get people to pay you money in exchange for using your idea.
Copy this into your browser to check out the US Patent and Trademark Office, which will give you more information:
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Get the patent process started while you figure out how to market your idea. If you want to set up your own shop or your own business instead of letting your idea do the work for you, then the first thing you need is a business plan. Find out what kind of materials, accommodations, and labor you need to produce your product, and figure out how high (or how low) you can price your product and still make money. You will need to incorporate as a limited liability company at first, because this protects you as an owner in case things don't go as well as you'd like. Start-up business can be risky.
If what you're marketing is a service, then once you get a local business up and running, you can open two or three more locations and possibly start to sell franchises. Your business plan should include your cost estimate and your estimated revenue for the first 3 to 5 years. Your start-up investment should be enough to cover all operating expenses for at least the first year plus anything special you have to buy. Don't make the common mistake of assuming your business is going to be profitable right away just because your product and people are good... your customers have to get the message too.
Only after you have your business plan should you consider looking for backers. Try banks, credit unions, and independent mortgage brokers and financiers. Some people refinance their homes to use their equity toward a start-up business. Others rely on family and friends. Without having any idea as to the scale of the business you want or even the kind of product or service you're interested in providing, I can't give you much more advice.
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Usually the best backers are friends. Tell your friends about this idea, see if any of them would be interested. As for it taking off, try to get small businesses to notice your brilliant plan, and move your way up. Starting your own line is costly, so try to get sponsors.
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