Had a client demo a great product for me recently. I was really impressed with his passion and the utility of the device. But the product lacked a key feature that will prevent it from being a success and I passed.
Consider the issues:The founder claimed to possess a great deal of experience in business as co-owner of two technology related firms. He also claimed participation in a business with a similar product to the one he was now promoting. Unfortunately, he couldn't provide proof or either.
In addition, he was asking for really large and rounded figures to start the business but failed to deliver a detailed list of anticipated expenditures. Not a single pro forma or estimate on company letterhead could be produced.
Revenue, likewise, was estimated using generally available figures for sales of other products in the same industry. But no basis for his product's anticipated stellar performance was available.
Worse of all, he was adamant that none of this was necessary. His pitch was that this was obviously a great product in a great industry and anyone with half a brain and the balls to go after it would. The "academic stuff" was a waste of time in his mind. He even suggested anyone not sold on this was a wimp and just p;lain stupid.
Lesson here is that a very critical component of the product is the entrepreneur. Had he asked for help assembling the requested data and provided what he had. I might have helped. Had he an entrepreneurial "stop at nothing" personality, he'd find comparables for revenue projections. I tried coaching and encouragement, but you can only lead a horse to water.
I have no doubt a similar product owned by a more rational entrepreneurial spirit will prevail.
I passed.
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