Duquesa Marketing

www.duquesamarketing.com

Press Release

For Immediate Release

Contact: Geoff Ficke

859-567-1609
gficke@msn.com

Geoff Ficke to Be Interviewed on WEGP 1390 AM Radio It’s Your Life Show on June 11th, at 11:00 AM ET

Duquesa Marketing Founder and Expert to Discuss the Most Useful Technique for Funding a Business Startup is Bootstrapping

Florence, KY  Nancy Ficke, General Manager, announced today that her Branding and Product Development firm Duquesa Marketing has scheduled another in a series of national radio interviews for Company President and Founder Geoff Ficke.

“Geoff Ficke will appear on WEGP 1390 AM radio It’s Your Life Show with Host Tami Kilcollins June 11th at 11:00 AM Eastern time”, said Mrs Ficke. “The discussion will be about the opportunity for entrepreneurs, inventors or small businesses to Bootstrap their new enterprises”.

“We work with hundreds of inventors, small and micro-businesses and entrepreneurs every year”, said Nancy Ficke. For many of these aspiring business owners their primary concern is the funding requirements they believe will be required to enable execution of a proper launch. Many assume they need to raise funding from angel investors, venture capital or banking sources. Very few will succeed by taking this path. There are many options but the simplest, and oldest is the concept of “Bootstrapping”.

Duquesa Marketing has assisted numerous individuals and enterprises start and expand Consumer Product opportunities over the past four decades. The award winning firm has vast experience in all Sales and distribution channels in the United States and internationally.

by: Geoff Ficke

Sourcing and Defining Volume Pricing Is an Absolute Must for Aspiring Consumer Product Entrepreneurs

I have been mentoring a young female entrepreneur for several months. She is not a client of my Consumer Product Branding and Marketing Consulting firm. This earnest lady has a very interesting concept in the Infant and Juvenile product space. Like so many aspiring first time business owners she is confused about how to best organize her enterprise and move from a hobby project to a fully commercial model.

As we discuss her projects status she states that her cost of goods is too high. This is because she is producing in very low volumes and utilizing domestic manufacturing sources. The test marketing and focus groups she has conducted are thus flawed. In order to gain proper due diligence from which to construct an accurate Sales Model, entrepreneurs must be able to ascertain an absolutely tight Cost of Goods.

Short run, hobby business-like volumes represent a distortion of the Sales Model. Unless the entrepreneur wishes to operate a low volume artisanal business it is vitally important to find the best sources of supply and manufacturing and to develop the accurate cost of mass production in hand with the chosen supplier.

We ask our sources of supply for dead-net Cost of Goods pricing for production runs that would approximate mass market distribution models. Dead-net Cost of Goods includes the total amount charged to fully assemble and package an item, plus international freight, customs, duties (if any) and local freight to a Fulfillment center.

The young lady I am mentoring has made the very common mistake of utilizing the much higher Cost of Goods she is currently absorbing based on low volume production and trying to force her Infant travel accessory items to market at a price point that is not viable. Test markets are only useful if the data received is based on solid Marketing fundamentals. Most test markets are not conducted with a goal of making profit. They are laboratories to learn about consumer acceptance, pricing objections, Branding effectiveness, etc. Test marketing saves time, money and mistakes when a product is finally launched after alterations to Marketing Strategies are made.

Take a simple component such as a 12 ounce plastic food bottle. The purchase of a stock Boston Round bottle in quantities of one hundred for testing might be $.25. In purchase volumes of 25,000 the price may drop to $.15 per unit. This type of differential, when applied to every component listed on a Consumer Product’s Bill of Materials will reflect a huge pricing differential. This has a massive effect on the ultimate optimal retail price that consumers will pay for the product.

One of the reasons usually stated for not obtaining a mass production Cost of Goods is a lack of knowledge. The entrepreneur does not know of specific factories or sources of supplies. The internet, social media and business directories today make this work so much easier than when I started my first business 36 years ago. The information and networks exist that actually make this process straightforward today.

Unless pricing for a full channel of distribution is not gleaned none of the assumptions that are used to create a business model will hold up. Sales projections, Business Plan elements, procuring investment from Venture capital sources,  Marketing Strategies and many more enterprise building blocks will crumble. Take the time and expend the energy to diligently uncover the most accurate Cost of Goods for your products.

Duquesa Marketing

www.duquesamarketing.com

Press Release

For Immediate Release

Contact: Geoff Ficke

859-567-1609

gficke@msn.com

Duquesa Marketing Announces Free Project Review And Funding Viability Analysis for Beauty Products

Award Winning Branding and Consumer Product Development Firm Offers Clients Over 40 Years Experience as Project Managers

Florence, KY  Geoff Ficke, President of award winning international Branding and Consumer Product Development firm Duquesa Marketing announced today a new Funding
Viability and Project Review Analysis for innovators seeking experienced guidance before entering the Cosmetic, Fragrance and Beauty product industry with new concepts.

“We have launched many of our own Beauty products over the last 40 years, and many more for clients in the American and international markets”, said Mr. Ficke. “The opportunity for us to save entrepreneurs time, money and mistakes by offering a simple review and analysis proves very beneficial to first time Cosmetic industry marketers”.

“A free 20 question quiz that can be downloaded from our web-site www.DuquesaMarketing.com and a phone consultation provides anyone interested in entering the Cosmetic world with a basket full of answers and options”, said Alexis Bruning, V.P. of New Product Development for Duquesa Marketing. “It is gratifying to us to be able to offer product development, marketing and funding guidance based on our long industry experience”.

“Duquesa Marketing has made it our mission to mentor young innovators in the Cosmetic industry space”, said Nancy Ficke, General Manager for Duquesa Marketing. “The menu of services we offer is a one-stop, turn-key project development service and it often starts with the Free Project Review and Funding Analysis consultation”.

by: Geoff Ficke

The Most Under-Utilized Resource Entrepreneurs Neglect to Take Advantage of Is Local Universities 

Inventors, Entrepreneurs, Artisans and Small Businesses are very often bereft of funds needed to secure professional help that would be beneficial in leveraging their projects to success. Lawyers, Engineers, Graphic Artists, Logistics Specialists, Packaging Designers, Web-site Masters, Marketing Consultants and many other qualified experts are much needed but difficult to afford for those starting a new enterprise. This is understandable but there are other sources for obtaining qualified help. 

We refer many under-funded prospective Entrepreneur’s to the nearest major University. Colleges are places of learning, often fully funded by taxpayers. There are many areas of study in each university’s core curriculum. Business schools, Design colleges, art programs, marketing majors, Engineering departments, etc. house a motivated, ambitious horde of students seeking to gain practical experience in their field of study. 

College Deans and Professors are often a wonderful source of inspiration when approached by small businesses and inventors seeking guidance. They will often assign a student, or team of students to assist on a project. Not only is this resume building experience invaluable for the undergraduate but it often leads to internships or post-graduate employment for those who successfully complete the assigned project. 

Many Universities have become very active in a commercialization process that they call “Technology Transfer”. When a school discovers a new technology, product or science that can be perfected in their facilities, they are being very aggressive in commercializing the process and attempting to create recurring income streams. We are currently involved with several major Universities in this type of product development and the concept is growing rapidly as colleges seek to leverage the invaluable resources that are housed in their intellectual property facilities. Technology Transfer can work for many more inventors. 

One of the fastest growing areas of study in Business Schools is Entrepreneurship. I have been a mentor, lecturer and Fellow at several colleges in this program. At some schools the course in Entrepreneurial Studies has become a capstone course, essential to complete before becoming eligible for receipt of a degree. These courses are often available as laboratories for inventors and small businesses wishing to perfect a Business Plan, create a Sales Model, customize a Marketing Strategy or design a Production Quality Prototype.   

These courses can be very useful. They are free for those willing to pursue the assets they can offer. Actually, most Professors love to match students with real world projects as opposed to an abstract fantasy project that the student designs on their own. 

On any number of occasions my Consumer Product Development and Marketing Consulting firm has mated entrepreneurial projects with students eager to obtain real world experience. We have done this with Gourmet Food (Nutrition Science), Footwear (Fashion Design), Skin Care and Aromatherapy (Marketing and Chemistry), DIY Product (Engineering), Packaging (Graphic Arts) and more. 

Obviously, it is preferable to utilize the most qualified, experienced talent available if it can be afforded. Students do not have an extensive body of work that can be tapped to quickly solve problems. However, what they lack in experience, they can make up for in energy and hunger. 

The job of a professional consultant or service provider is to save the client time, money and mistakes. If the client has limited monies available pursuit of assistance from a motivated student can provide a reasonable alternative. Many Small Business people often root for the local schools sports teams. It can be much more satisfying to use the college academic departments as part of your own team.

by: Geoff Ficke

What Is 3-F Funding and Why Do Entrepreneurs Need to Understand the Vetting Process for Securing Funding? 

Many years ago, when I was a young, ambitious, aspiring entrepreneur I was imbued with the conceit that venture capitalists, investment banks or angel investors would fall over themselves to invest in my first project. I was passionate about my product. I quickly discovered that investors were decidedly not.  

Though disappointed at my lack of success in securing the sought after funding, I was able to learn a lesson that has been a truism in my entrepreneurial career, and one I share frequently with prospective clients in my Consumer Product Branding, Product Development, Marketing and Funding Consulting group. Simply stated the lesson is this: Start-up funding for almost all enterprises is 3-F funding. It comes from Friends, Family or Fools. 

I am approached almost daily by aspiring Inventors and Entrepreneurs seeking a funding round for their proposed new project. They ask and I respond that this type of funding, and in the relatively small amounts requested, comes from Friends, Family or Fools. This adage is to Venture Capital as “Going, Going, Gone” is to baseball or “Hooah” is the 82^nd Airborne Dvision. 

Most start-up business opportunities do not qualify for an initial investment round because they cannot stand the vetting process applied by sophisticated investors. There are many reasons for this barrier to entry. The amount that can be justified by the Business Plan is too small for consideration. The plan itself is not compelling. The inventor or entrepreneur is not compelling owing to their background or history. There is a lack of due diligence that is easily recognized in the strategy proposed. 

I regularly find myself counseling prospective small business owners that if failure to secure a funding round will kill their project, then the project probably should die. It is the successful entrepreneur’s responsibility to find a way to overcome every obstacle placed in their path, including raising seed money from unorthodox sources. If this roadblock proves fatal, then the owner is not driven, passionate, creative or clever enough to succeed in the endeavor. 

Are their funding alternatives? Yes. Many projects can be bootstrapped utilizing very limited funds and a great deal of leverage. Strategic alliances can be developed for many projects. Many projects are proposed on large scale launch and distribution strategies that can be downsized, localized and then regionalized as sales traction occurs. Money is always available for funding projects that demonstrate sales traction, and, most crucially, re-orders! Receivable funding and factoring are methods we utilize often to finance client growth.

Recently I consulted with a young man who was developing a juvenile Toy product line. He presented me with a plan that was built on a $750,000 funding requirement. As I vetted his Business Plan assumptions, I deduced, and he agreed, that he really needed about $100,000 to develop, Brand and Pre-Sell the line. I laid out a Gantt Chart for the project and detailed how this could happen and options for funding, after he had received orders from retailers. He had never considered Pre-Selling. We always consider a Pre-Sell strategy for new product launches. 

The $100,000 stumped my Toy entrepreneur. He did not want to ask Friends or Family for support. This is understandable. He did not want to take equity out of his home, also understandable. He wanted me to reach out to my investment sources. I replied, “Why would a stranger invest in the product if you are not willing to invest in yourself, and Family or Friends do not believe in the Toys and you”? I received no response.

 Starting a business or launching a new product or service has never been easy. It is not meant to be. The successful entrepreneur is a valued minority. Most prospective entrepreneurs do not have the ability to overcome obstacles that the markets place in the way of their progress. This culling of the herd, or “Survival of the Fittest”, is the reason that so many people want to operate a small business but so few actually accomplish the feat. Funding, or lack thereof, is the canard that most failed entrepreneurs posit as the reason they are held back. Sourcing seed money from Friends, Family or Fools must be considered as the “alpha” resource to go to first.

by: Geoff Ficke

Before Asking Others to Invest in Your Project Prepare to Answer the Question That Always Comes 

Recently I reviewed a Business Plan that was submitted with a goal of raising a $2 million angel funding round. The product was a Hair Care Accessory that had real commercial potential. If I were grading the plan in one of my classes I would have given it a solid B. I was smitten with most of the assumptions that the document detailed to support the projects viability, except one. 

There was only one very major red flag that any Venture Capital investor would seize upon and consider a disqualifier; the $2 million angel funding round. The question that is always asked when a prospective Entrepreneur presents to Venture Capitalists (VC) is this: “How much have you invested of your personal capital into this project”. In some way, shape or form this question always pops up. It is usually not well answered. 

In this case the Inventor wanted the $2 million for salaries, a manufacturing facility, travel, staff and offices as well as for inventory build and Marketing. My job is to prepare Entrepreneurs for the rigid cross-examination they will surely receive from the VC panel that examines investment opportunity. I quickly had to refocus my prospective client that funding sources want to know what you are going to do with their money, as well as what you are not going to do with it. Building fixed overhead falls into the category of what you are not going to do with investment monies. 

Ask yourself, “Would you invest in you”? If you will not invest monies and assets that you own in your project why would anyone else. For decades banks required a significant down payment before loaning money to buy a house. Housing was considered a great investment for those who had equity in the property. About 20 years ago underwriting standards were loosened and today we see what having no skin in the game has done to housing and the economy. 

We approach Venture Capital Companies to get projects off the ground. They are in business to discover exciting ideas and products that may potentially become great Companies. They have capital to invest precisely because they are smart people. The pool of hopefuls seeking funding is much greater than the available funding sources. VC is highly selective because they can afford to be.

When an Entrepreneur approaches investment sources they must anticipate and have answers for an array of questions they will surely be confronted with. If you live in a fine home, drive a new car, wear a designer watch and belong to a nice country club the VC’s I know will ask, “Why are you asking us for money”? 

In the instance of my Hair Care Accessory inventor he could not answer this question. I repeated, “Would you invest in you”? He said, “of course I would”. My response was why haven’t you? 

It is not necessary to be living in penury when asking for an investment. It is important that you can demonstrate that you have fully committed yourself to the project in question. You must be able to demonstrate that “You have invested in you”, to the best of your financial ability. Sweat equity is important. Do not take shortcuts. Due diligence must be thorough. How will you Market the project? Only when you can convince others that you are worth their investment will funding sources begin to open to your project.

by: Geoff Ficke

The world is currently fixated on the international credit crisis and the role banking has played in this debacle. We take it for granted that commerce flows quickly and accurately across borders and frontiers. A resident of Maine can purchase a tank of gas at home, or in Italy with the same credit card. The purchase will be accurately debited to their account, their credit limit will be adjusted and the merchant will receive an electronic transfer of the charge into their account almost simultaneously. This type of commerce happens many millions of times each day and we take its simplicity for granted.

The history of the rise of organized banking is a bit more plodding and evolves from a most unlikely source. Today our knowledge of the Knights Templar is garnered mostly from popular culture such as the Indiana Jones movies. The history of this iconic fighting force, and their evolution into the first international commercial group of the middle ages is as amazing a tale as can be told in any fictional movie or novel.

The Knights Templar was formed after the initial Christian victory in the First Crusade to take Jerusalem from the Muslims in 1099. Pilgrims from all over the Christian world wanted to make the pilgrimage to Jerusalem and the Holy Land. However, travel at that time was exceedingly dangerous. The Knights Templar was first organized as a monastic order to protect the pilgrims as they traveled. They took a strict vow of poverty.

Over the next 200 years the order flourished and developed into a renowned fighting force. With their sturdy mounts, white hooded tunics displaying the Red Cross, and shiny armor, they lead the way into numerous battles against the enemies of Christendom. The vow of poverty was strictly enforced, but many royal and noble families delivered their sons to the Knights Templar to curry favor with the Papacy of the Catholic Church.

The Knights Templar enjoyed favored status with popes and archbishops from all over Europe and North Africa, for their reverence, gallantry and honesty. They were often rewarded with alms, farms, lands and livestock. Their power grew as the public recognized the special relationship they enjoyed with the clerical hierarchy of the Church.

Many pilgrimage makers came to depend on the Knights Templar to hold their valuables in safekeeping as they made the difficult journey. The order created secure safe storage facilities at strategic locations along the most used routes. They developed a type of written chit that verified that they held certain monies and valuables owned by the bearer. Upon arrival in the Holy Land, the bearer could visit a Knights Templar outpost, present their receipt and receive monies, bullion or goods in kind, the equivalent of that left behind in the order’s care.

This was the first form of bank cheque and was probably the earliest form of organized international banking. The system evolved as the Knights Templar gained vast new riches, even though they were still vowing to live a life of poverty. Previous to their development of rudimentary banking products most trade was accomplished by crude barter. They became the richest entity in the world at that time and began to suffer the increased scrutiny of their historic protectors in the Catholic Church.

By the 14th century, the church moved to disband the Knights Templar and martyred many that were captured. The order became a secretive underground society and rumors of their activities and continued existence are legend to this day. The locations of the lost gold, silver, jewels, art and religious artifacts that the Knights Templar acquired and hoarded in their many adventures is also the stuff of fables and lore. The lost Holy Grail, and all of the fabulous tales attached to this famed relic from the Last Supper, is often connected to the Knights Templar.

The commercial activity that the simple, novel creation of a system for verifying bank guarantees is actually the Knights Templar’s greatest contribution to mankind. This simple transactional device has proven far more valuable historically than their military conquests and reputation for living pious lives. It is certainly not what they are best known for. But it is an invention that has positively effected commerce and productivity to this very day.

by: Geoff Ficke

You are an entrepreneurial inventor with marvelous ideas in your area of expertise. The ability to create models, prototypes and concepts flows easily from your fertile brain. Nevertheless, all you have to show for your creative efforts is a garage full of dead end stuff, despite all of your efforts.

Many creative people have an area of knowledge in which they excel. They are in their comfort zone there and can appear to be a master of this precise universe. However, taken just a bit outside the protective lines of this tight little planet, they are lost souls. They can not communicate their brilliance, demonstrate their value and commercialize their creativity.

This is all too often a loss for the economy and society at large. A great invention that does not arrive in a timely fashion to the marketplace is a huge loss on many levels. Innovation is the juice of life for a vibrant economy. To be deprived of any source of ingenuity, no matter the reason, is to limit the range of possibility so vital for discovering big, new ideas.

A relatively little used option, for inventors and entrepreneurs, with limited ability to fund or license their product, is the Strategic Alliance. A Strategic Alliance enables a product, invention or service to become absorbed within the structure of a going business. The business handles all aspects of production, sales, marketing and finance as if the item was invented in house. In return, the inventor receives an income stream for a defined share of the profits generated by the product, a consulting agreement or employment working in his area of expertise on the project.

Many successful Strategic Alliances occur when an inventor, recognizing his areas of weakness, is knowledgeable about industry conditions, patterns and networks within this universe. Software writers, engineers, chemists and technicians often utilize this narrow gauge form of networking. It is a strategy available to any inventor having specific industry experience with application to their novel product.

The Strategic Alliance approach minimizes the need to approach strangers from outside your area of expertise. You know your field, you know the players (good and bad), you know the industry trends and you, better than anyone, know the innovations craved within this area of business. Familiarity with these factors gives the creative mind a leg up in pursuing an alliance that will enable a successful commercialization of their invention. Many people are immensely more confident when speaking the language of their trade than communicating in any other arena. Take advantage of this inside baseball edge!

The successful Strategic Alliance usually occurs much quicker than funding or licensing. The parties to the alliance, typically coming from the same business category, communicate in terms that are direct, and short circuit the usual learning curve required when negotiating with outside, less than knowledgeable investors or bankers.

An added benefit to the partners is the minimization of investment funds required to ramp up a new project. The business side of the alliance usually has specific experience in the product category. Most, or all, of the infrastructure needed for successfully marketing the invention is already in-house. From secretarial help, to warehousing, to manufacture, to finance, this is a going business with a complete set of assets. The lead-time from agreement to actual shipment of the item is often greatly reduced.

Strategic Alliance can be a win/win for both parties, and in my experience is usually the result offering the best outcome for the acquirer of rights and the inventor when they come from the same business category. The shoe fits well here for both parties.

It is important for the creative, but inexperienced, inventor to seek professional assistance when negotiating terms and conditions of the Strategic Alliance Agreement. The excitement of making a deal, and working with people from within their specific industry, should not get in the way of prudence. Contracts are often complex, and it is important to circumvent disagreements later, so clearly define each parties full range of obligations and conveyance.

by: Geoff Ficke

We live in perilous financial times. As the markets have imploded, home prices cratered, jobs lost and incomes uncertain many people have become very risk averse. Very understandable! Many of us are more focused on maintaining our resources than expanding them in the face of so many unknowns.

The American dream to successfully start and grow a self-owned business is always going to be with us. However, in times like these, some entrepreneur’s have become less willing to take the plunge into the ownership class. They are willing to wait until things settle; markets calm and funding sources return to prior levels. This is sound strategy for the timid, but these people are probably never going to be truly successful as business pioneers.

Recently I was in Spain and read a story about some French film students. Like so many creative artists, these young people are passionate about their art and fully committed to their dream of creating full-length films, in this case human rights documentaries. This is a very hard type of project to fund, even in the best of times. The market is brutally competitive, distribution is scarce and profits are very elusive for all but a few of the best productions. How in the world would these students find the funding they so desperately craved?

They did it the old fashioned way: they got creative. They sold vanity to investors. 

Have you ever sat through and paid attention to the credits listed so fully at the end of any movie or television show? They seem to scroll on forever. Each caterer, assistant caterer, food taster, drinks coordinator or executive chef is listed, fully named and titled. Over the past 20 years the number of producers, executive producers, assistant producers, joint venture producers and specialty producers credited has grown exponentially. This gave the students a simple, brilliant idea: We will sell credits for investment.

They started with other students, family, then used the internet. Credits were sold for various levels of financial contribution to the production, some for as few as 10 euro’s. It is amazing what some people will do to see their name in lights. Money poured in and the students were sufficiently financed to complete their film, present it at European film festivals and arrange distribution deals in various European media.

This is but one example of how serious, passionate entrepreneur’s search for alternative paths to bring their passion to markets. The opportunity has never been greater for those willing to get in the game. Is money tight? Of course it is. Has new business startups slowed down? Of course it has. Are people still trying to launch businesses, follow their dreams and present consumers with better products? Of course they are.

When business is booming, venture capital seemingly flowing endlessly and entrepreneur’s crawling out of the woodwork, well guess what, there is relatively speaking, no more opportunity that there is in soft times. In up cycles there is more activity chasing a finite number of resources. In down times, there is significantly less entrepreneurial opportunity chasing a still existing, but somewhat diminished pool of capital. It closely equals out.

The available capital necessary for funding exciting new opportunities is readily accessible if the entrepreneur is creative. The world economy will come out of this problem time. The products and services that are being prepared now will be the big winners when the pent up demand for new consumer products, technology, cosmetics, sporting goods, wellness products and a host of other categories explodes as consumers return to markets. Just remember, if it were easy to be successful everybody would be. 

Venture capital and funding sources are always, especially now, seeking the best, most vibrant, creative opportunities. Make your product special, desirable and different and then, it really doesn’t make any difference what the economy is doing. You will be able to attract the resources needed to be successful.

by: Geoff Ficke

There is an old adage in the funding community: “Investing $1,000,000 to fail is expensive, investing $5,000,000 to succeed is cheap. Investors will respond to funding needs based on real world assumptions. They will be very cautious when assessing a venture’s real funding requirements.