routes for financing product development
Discussion
The thread on high capital startup requirement got me thinking that I could ask for advice on my current business related problem.
Background - aerospace engineer for last 14 years (10 of which have been as a Ltd company contractor).
I am moving away from contracting to corporations on new aircraft design towards design/build/sell of unmanned aircraft up to 20kg. I'm fine with the engineering and regulatory aspects as that's my background. I am not so clear on some of the business/financials of new business and the options that might be available to my company.
In order to bring this product to market, I need to concentrate on it fully. I would therefore like to do this product development full time. Now is an ideal time to do this. I would need funding to cover 1 person for 12 months, 3 exhibitions, attendance at conferences etc and equipment/hardware to build up to 3 prototype systems. From there on out I would be able to sell airframes in various formats from basic 'empty' airframes to full hardware and systems along with integrating specific payloads.
What would be the best ways to go about funding this kind of activity? Would I ideally need to start up a separate company from my current one?
I know I should seek out advice from professionals - please see this post as a request to help my brain to process this and see how it can fit in to a plan.
Background - aerospace engineer for last 14 years (10 of which have been as a Ltd company contractor).
I am moving away from contracting to corporations on new aircraft design towards design/build/sell of unmanned aircraft up to 20kg. I'm fine with the engineering and regulatory aspects as that's my background. I am not so clear on some of the business/financials of new business and the options that might be available to my company.
In order to bring this product to market, I need to concentrate on it fully. I would therefore like to do this product development full time. Now is an ideal time to do this. I would need funding to cover 1 person for 12 months, 3 exhibitions, attendance at conferences etc and equipment/hardware to build up to 3 prototype systems. From there on out I would be able to sell airframes in various formats from basic 'empty' airframes to full hardware and systems along with integrating specific payloads.
What would be the best ways to go about funding this kind of activity? Would I ideally need to start up a separate company from my current one?
I know I should seek out advice from professionals - please see this post as a request to help my brain to process this and see how it can fit in to a plan.
coanda said:
The thread on high capital startup requirement got me thinking that I could ask for advice on my current business related problem.
Background - aerospace engineer for last 14 years (10 of which have been as a Ltd company contractor).
I am moving away from contracting to corporations on new aircraft design towards design/build/sell of unmanned aircraft up to 20kg. I'm fine with the engineering and regulatory aspects as that's my background. I am not so clear on some of the business/financials of new business and the options that might be available to my company.
In order to bring this product to market, I need to concentrate on it fully. I would therefore like to do this product development full time. Now is an ideal time to do this. I would need funding to cover 1 person for 12 months, 3 exhibitions, attendance at conferences etc and equipment/hardware to build up to 3 prototype systems. From there on out I would be able to sell airframes in various formats from basic 'empty' airframes to full hardware and systems along with integrating specific payloads.
What would be the best ways to go about funding this kind of activity? Would I ideally need to start up a separate company from my current one?
I know I should seek out advice from professionals - please see this post as a request to help my brain to process this and see how it can fit in to a plan.
Have you any cash? Any property or other assets you can use to produce cash?Background - aerospace engineer for last 14 years (10 of which have been as a Ltd company contractor).
I am moving away from contracting to corporations on new aircraft design towards design/build/sell of unmanned aircraft up to 20kg. I'm fine with the engineering and regulatory aspects as that's my background. I am not so clear on some of the business/financials of new business and the options that might be available to my company.
In order to bring this product to market, I need to concentrate on it fully. I would therefore like to do this product development full time. Now is an ideal time to do this. I would need funding to cover 1 person for 12 months, 3 exhibitions, attendance at conferences etc and equipment/hardware to build up to 3 prototype systems. From there on out I would be able to sell airframes in various formats from basic 'empty' airframes to full hardware and systems along with integrating specific payloads.
What would be the best ways to go about funding this kind of activity? Would I ideally need to start up a separate company from my current one?
I know I should seek out advice from professionals - please see this post as a request to help my brain to process this and see how it can fit in to a plan.
Investors will want to see you put your own money at risk to some extent to get the thing going. What they won't want to do is fund your salary (or lifestyle) whilst you keep your own assets safe, working out whether what you want to do is viable as a business.
As the other thread, you also would be well served to have some credible market research and/or letters of intent from people confirming they would be interested in buying what you produce at the price you would like to sell it.
You could also look to partner up with another who has the contacts/funding to build the business case, share the risk and get things moving, however this would naturally mean, like most other investments, sharing the benefits as well as risk.
Jane,
Thanks for the reply.
You raise some good points (as I'm sure you knew already). I am totally on board with not wanting someone else to finance my lifestyle - such as it is. Certainly not the intent here. I'm very happy and very motivated to work on this until done. I just need to maintain a roof over my head.
I have no mortgage or other capital at this point due to life events 2 years ago. I do however have some kind of borrowing capacity - and whatever this is would be the extent of risk I could subject myself to.
Thanks for the reply.
You raise some good points (as I'm sure you knew already). I am totally on board with not wanting someone else to finance my lifestyle - such as it is. Certainly not the intent here. I'm very happy and very motivated to work on this until done. I just need to maintain a roof over my head.
I have no mortgage or other capital at this point due to life events 2 years ago. I do however have some kind of borrowing capacity - and whatever this is would be the extent of risk I could subject myself to.
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