Do you want to take your 3D printing business to the next level of expansion? Everyone is familiar with the dragon’s den scenario where the business owner delivers their product idea to a panel of investors. Taking on your own investor can be a daunting task but get it right and you could be looking at a business which is far more profitable with a much larger reach of customer base in no time at all.
So how should you prepare your 3D printing business ready for investment?
Product Research – First, research your 3D printed product. Make it, test it, try to break it, and repeat. Do the groundwork, investigate the filament materials, the shape of the final product. Can it be mass produced and what type of 3D printing technology will be used to deliver the production?
Market Research – Secondly, which industry is the product aimed at? Is it aimed as a consumer product or targeted at the industrial sector? Is there an age range? How do you anticipate on promoting the product and what does your competition look like?
Scrutinise the figures – How much does the filament cost and can it be bought cheaper in bulk? What does it cost to make the product in terms of time and energy? What is the cost to sell and what is the profit for just one product? On the greater scale what is the company turnover, plus forecasted turnover over the next 5 years?
Business Growth – Finally, what is the ambition for the 3D printing business? How much capital do you need to invest and what plan will it be used towards? How do envisage profit share to benefit both yourself and your investor and are you looking at any other support for the business?
Going armed with as much information as possible will paint a clear picture to the investor. Ideally innovators need to sell the product or concept on the first opportunity so that they can begin to build a relationship with the investor and make themselves and their product desirable during the first instance.
Where to find an investor?
Investors are sourced through a variety of avenues. Networking and online recruitment, the local chamber of commerce and county innovation hubs can connect business and provide leads. Conferences and business events also open up opportunities to connect.
What about the legal side?
Signing contracts and giving time to attention for detail, will help to outline clearly what you expect and what is expected of you. Obtain commercial insurance to protect your 3D printing business. Through the likes of Crendon Insurance we provide a range of commercial insurance products which are individually tailored to suit business needs. From start-up business insurance and 3D printing insurance to intellectual property insurance and digital IT technology insurance we support innovators when bringing new products to market. Crendon Insurance are excited about innovation, for a confidential review about your growth idea, please get in touch.
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