seeking investor(s) for a whole new line of 40-45 ft cats

[CatintheSun]

Hello, Greetings, Hi:
An boat design idea came to me on New Year’s, it’s been 2 weeks, and the idea is not going away.
In fact, it’s already taken on a life on it’s own.
Description, business cards, drawings I can build from, material researched and collected, started on a model and a project proposal.
Help.
How do I share it without it being stolen?
How can I secure the financing I need to create jobs.
Yes.
This design can be built in the backyard, mass produced, or custom built.
Who do I present a project proposal and a model to?
I’m willing the put my house up for collateral.
Jeff

[CatBuilder]

Jeff, you need business advice here, not boat advice.

When I lived in NY I used to place funding deals as a side gig.

Here's the first thing you need to know:

Nobody wants your idea... well... guys with money don't want it. Some boat builder or a boat company might, but those are not the people who will invest in your fledgeling business. You need money. Don't walk into any financing meeting and start talking about protecting your idea. It shows you are a rookie at raising capital and a rookie in starting a small business. You just present your idea to the angel/vc/investor and that's that. They will never sign an NDA. If you try to force one, they will show you the door.

They don't do this because they want your idea. They do this because they don't want to be sued. If some other company they work with has a similar product, they could be blamed for inadvertently transferring your intellectual property to the other business. They want no part of that mess, so they don't sign NDAs.

If you are putting up your house, you are probably looking for hard money, which is good, because it's still not so easy to get small business loans right now.

You need to look up hard money, asset lenders, but first... I'd suggest really nailing down your business plan.

I'm not one for formal business plans, but you certainly need one, quite often even to attract the attention of hard money lenders. Investors want to know you're serious. If you don't have the patience and diligence to write up a proper business plan, they know (and are correct) that you don't have the patience and diligence to run a business successfully.

But for yourself, even if you don't write a plan, you damn well better make sure there is a market before you risk your house. Find out who would buy this boat of yours and why. Find out if anything similar has ever been done. Make cash flow projections (real ones) and run your company like Ebeneezer Scrooge while you are getting off the ground.

Hard money / asset lending will be at an unbearable, usury style interest rate. You have to suck it up and pay that because nobody else will fund you. That's how it is. They will also want a first preferred mortgage on that house, so let's hope you own it free and clear.

Another alternative might be to take a mortgage out yourself or do some kind of crazy refinancing on the house through a regular mortgage lender. Tell them you are refinancing to take advantage of today's low rates and finance a bigger chunk, rolling your startup capital into that mortgage. That would be a lot better than hard money for your business.

Lastly, do you plan to build the prototype boat with your own crew or by yourself? Or... do you plan to hire a boat building company to do that for you? If you hire a boat building company, you can work a non-disclosure agreement into the deal. You will need an attorney and an accountant right off, but make sure you go for low cost ones that are used to working with startups.

Basically, you don't need boat help. You need small business help.

Some people who are very knowledgeable are at S.C.O.R.E:

http://www.score.org/

Good luck! Opening a new business is a lot of work, but it sure is fun and exciting!

[CatintheSun]

Thank you for your response.
I do not see a SCORE chapter in Ontario.
I plan on building a model and then the prototype myself.
Thank you for the good advice.
I've spent a lifetime running my own business, same one since 1988.
And I did a graduate certificate 2 years ago which included project management.
Who do I present my project proposal and model to when I get them done?
Jeff

[CatBuilder]

Jeff, that's part of the fun and I already answered that question:

Angels, hard money lenders, etc.

[CatintheSun]

As a graduate from a small american private university, and having experienced the response in FIJI of people from 7 other different countries on 9/11, is it always wise to be careful of what you wish for.
Does hard money wish for hard times?
Having spent 2000 yours underwater in 52 countries, I find the ocean to be soft. There is nothing hard about it.

This is an appeal for soft money.
Here is a description of how I wish to contribute

Description:

The Cat-in-the-Sun Catamaran design line offers and exceptional blend of sailing and solar power performance, with a panoramic view – in living comfort.

From solar powered live-a-board boats without sails (SunCity), to coastal cruisers combining solar inboards (SunSpot) and sail, to full ocean racing yachts with backup solar (SunFlash), the Cat in the Sun design series offers a stylish, stable saloon mounted on any catamaran Vaka (hull) with a beam at the waterline over 3 feet.

The standard sail plan is relatively conservative with a small, easily handled, roller-furling, non-overlapping headsail. If more performance is required then a more generous sail plan can be substituted. Mast head asymmetrical spinnakers and light weather reachers can be flown from the bows.

Unfixed, high aspect ratio dagger boards in each Vaka provide safety and performance in both shallow and deep water.

Solar collectors on the dome power inboard/outboards, dagger boards, a desalination plant, stereo system, heat, hot water, air conditioning, navigation, mechanical.

Exoskeleton construction is a composite of a unique composite of building materials under a hardwood skin. Endoskeleton construction is of welded aluminum. The space between inner and outer skeletons is filled well above the waterline. Steel is incorporated into firewalls separating bulkheads.

Sail, solar, stability, strength, speed, heat, light, water, fun - SunSpot offers an exceptional blend of sailing and solar performance – in comfort.

[michael pierzga]

The market is absolutely flooded with customer choice. So many boats in the 40 50ft range that market...... speed, strength , comfort, style, fun......

Your only hope for success is to first build one, attract clients with deposits, then solicit bank funds or investor funds to produce the yacht in a low wage, low overhead country.

The last 35ft boat I was associated with needed 9 builds to payback design, tooling, overhead costs. 12 were built before the company folded.

That was 40 years ago.

If you do indeed have innovative technology you might be better off marketing this innovative technology....not a finished boat.

[CatBuilder]

Mixing an aluminum frame with wooden skins? Hope that joint is flexible where they come together.

[CatintheSun]

First, in response to Catbuilder.
The Aluminium cage and wooden skin never come together

Second, in response to Mr. Pierzga.
Form and function.
The design is needed to carry the innovative technology
Jeff

[Mr Efficiency]

Originally Posted by CatintheSun

First, in response to Catbuilder.
The Aluminium cage and wooden skin never come together

Second, in response to Mr. Pierzga.
Form and function.
The design is needed to carry the innovative technologyJeff

In that case you will need to build it, and then they will come.....the financiers to set your building operation up, or the technology companies you need to impress to licence or sell the idea to.

[CatintheSun]

Hello Mr. Efficiency:
Nice
Jeff

[Wavewacker]

Jeff, I was a HM lender for small businesses.

You need a business plan, go to SCORE

Another source for assistance is the SBA, they can point you to someone in your area.

Do not offer your home as collateral initially, if you must later on, they will tell you so. Too many shaddy guys out there, protect yourself at all times.

Get an attorney after you have decided what kind of business entity you need, You might consider a partnership with an established builder and use their credit and assets.

Your attorney can provide you with "non disclosure" agreements to show your idea.

You won't need an accountant until after your company/partnership is funded, but you need to have any pro-forma statements for your company reviewed by a good accountant (and I don't mean a bookkeeper....a CPA) You'll need this for your business plan.

Do not over hipe your idea. When someone came to be with something new, different and exciting, like a ball of fire, I showed them the door! Lenders are conservative people and you will scare them! Show evidence of what you claim, nothing is revolutionary, it's a better way to solve a problem. Careful on your market share claims! Be conservative.

Again, consider getting a boat builder to partner with, IMO.

Lastly, it is illegal to solicit investors for a company under Security & Exchange laws, see your attorney and they will guide you as to who you can approach for money. Blasting it out on the internet to the general public can get you trouble before you get started.

Hope that helps....good luck!

[CatBuilder]

Jeff, notice the similarity between Wavewacker's post and my post. Ok, notice his is much more coherent. I was an entrepreneur who ran a company, but on the side brought deals to people like Wavewacker for a commission. I pre-screened them and brought only the good stuff. I remember throwing away some tourist submarine manufacturing company that looked pretty cool because the management team lacked some skill. Specifically, the botched their market analysis.

Anyway, notice what the money guy and the broker to the money guy say is pretty much one in the same here.

This is what you need to do if you want to raise capital other than friends and family.

[CatintheSun]

reply to Wavewacker.
I'm listening, with thankx
Jeff.

[CatintheSun]

This is a response to Wavewacker, addressing the question of why Cat in the Sun.

The Cat in the Sun design series started with a shape optimized to collect the sun’s energy
Together with a shape optimized to maximize living space
On a Catamaran
Suddenly the whole became greater than the sum of the parts, because the shape is stronger for any given amount of material.
The boat is lighter, it can carry more.
Then a way was found to make the boat even lighter, by an original combination of materials.
Suddenly; yet again, the whole became greater than the sum of the parts, because a method was found to combine the materials fast.
The Cat in the Sun design series offers optimum solar collection, living space, strength to weight ratio, and speed of assembly.
Jeff

[Frosty]

Maybe some one needs to seek investors for a new kind of Marina that accomodates catamarans. They dont arf take up some room some of them.