Kathleen Hutson
Magnolia, DE (USA)
Role(s):
Other
KMH contracting
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Startup
Location:
Magnolia
Industry:
Invention
Year Founded:
2013
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
Limited Liability Company
Description:
My product is for babies, but because patent is not completed I can not release all details until a non-disclosure agreement is signed. If I post complete details someone can take my idea and use as there own. Which is the main reason I am seeking funding to patent and sell my idea. Manufacturing would take millions for me but a company like Graco and Evenflo would be extremely easy since they are already making products with the same materials. Royalties are for what is produced, not what is sold leaving me with no risk, no overhead, and no additional investment needed. Royalties are usually from 5% to 20%. I have made my own product as a mother of two and small little Delaware I have had over 400 inquiries which made me want to go further with my idea.
Any investors first question is how would I make back my investment? There are two major possibilities for this product United States only and Worldwide. Now granted these estimates are on the absolute lowest ends.
In the U.S. about 4 million babies are born yearly. If 1% of these parents would be interested in my product where 40,000 were made and they were sold for $69.99 that would equal to $2,799,600. If I earned 10% royalties that would be $279,960.
Worldwide the are about 133 million babies born so 1% of these parents would be interested which is 1,330,000 and it was sold for $69.99 that would equal to $9,308,670.
What do I estimate my product is worth. Although my product is not a necessity, it also isnot a luxury, it is somewhere in the middle. With the economy suffering in the U.S. I would estimate that 40% to 60% would buy my product. Making my profit at 10% estimated at $1,119,440 to $1,679,760.
Now even though more babies are born worldwide, there are more areas of poverty worldwide. I would estimate 20% to 40% worldwide making an estimated profit of $18,617,340 to $37,234,680.
With the first 40,000 made I would return the investment of $100,000. After I am willing to give 2% of my profits for 5 years to make additional profits for an investor. Of course anything these are not completely set numbers. I understand that there has to be money made to anyone involved in business, but I do not want to over indulge either.
How would the $100,000 be used. Three of the most important things is getting a utilities patent, having a lawyer to make sure this is iron clad profitable for everyone involved, and hiring a skilled marketing team to get the manufacture to make the products. I'm hoping multiple producers will be able to make the product, but for a great offer will consider exclusive rights. Also, so I can be 100% devoted to getting this out and done I am taking a small salary. There are product that are way down left field from mine so I do not want to wait until someone else comes up with this idea.
Please contact me with any questiions!