DGs that Own a Biz

[UnluckyXIII]

My Intellectual Property Contract with my old job expires in May (18 Months after downsizing) and I am looking to patent and manufacture my design for a medical device.

The nightmare of having to patent all the instruments and every size option needed is going to be taken care of. Luckily, I fence with a patent lawyer who's helping me out there.

My questions for youse crazy DGs is more on the start-up aspects of running your own business.

Anyone get a SBL? Or grant? Any pointers? (A loan is the option I am looking at currently.)

How do you handle employee payroll? 1099? (I'll need 5 or 6 employees in total, not including research doctors who I have to contract anyway.)

Anything you know or experienced that might help me would be appreciated.

[Smoove]

venture capitalists

[UnluckyXIII]

venture capitalists

Been looking for some. Any ideas?

[BladeX]

fuck vc money....

http://www.score.org/ find your local chapter and visit they'll help out w/ getting a loan.

for employees be sure to get a good accountant they'll help out w/ the payroll bullshit... I 1099 all my workers... everything they do is contract and they are offsite. if you have an office and they work in the office solely for you...you cant 1099 them... check out nolo.com they have some helpful books and on all this shit.

also quickbooks is your best friend :>

[ryph]

1099s are strictly for contract work, unless you dont actually want to bring anybody onto payroll?

also, should be in whywork.

[UnluckyXIII]

Thank you, fawzy. I'll look into all of that.

My major problem is I'm wired into the creation/manufacture of the device and I have little idea about actually running the business aspect of it. I'm going to bring in a friend of mine who has his MBA(?) from Michigan to run the bookkeeping and everything, although he doesn't know it yet.

My big concern is I actually need capital equipment like at least one CNC lathe and some manufacuring machines. Being that I plan to headquarter in Detroit metro, there's no shortage of CAD/CAM operators and Tool and Die men looking for jobs.

Also, I can't seem to find a Michigan supplier for medical grade steel and titanium. That's only been loose research though, I'm sure I can someone.

[UnluckyXIII]

also, should be in whywork.

You're right. My mistake...

Mods plz move.

[Smoove]

Been looking for some. Any ideas?

If you were in canada.

[Smoove]

did you get patents and a buisnessplan drawn up?

[rmk]

how much money are you looking for?

[UnluckyXIII]

did you get patents and a buisnessplan drawn up?

"Patent Pending" right now. There's a lot of instruments I haven't finished the blueprints/CADs on all of them. Because there's a lot of size options needed and I have to make a design for each one, I'm still working on it...

Business plan is pretty solid right now. I have to figure out the financial aspects and get some source material from JAMA and other medical publishers together.

[UnluckyXIII]

how much money are you looking for?

Still looking into it. At least 75k for the patent and prototype phase. Most of the manufacture will be one time runs at this point so I'll likely just hire a company to do the work then. The clinical trial phase will probably share costs with a research hospital but that may last several years so keeping the company afloat may take some liquidity.

I haven't got beyond that in my financial plan. :(

[iceman20]

You know about the Small Business Administration, right?

http://www.sba.gov/

[UnluckyXIII]

You know about the Small Business Administration, right?

http://www.sba.gov/

yeah. Not sure it'll help though.

[iceman20]

yeah. Not sure it'll help though.

All the info about special government-backed loans for small businesses are there. There's also info about how to seek out government-backed venture capitalists, etc.

I had a class all about this stuff and I've forgotten a lot of it.

[UnluckyXIII]

All the info about special government-backed loans for small businesses are there. There's also info about how to seek out government-backed venture capitalists, etc.

I had a class all about this stuff and I've forgotten a lot of it.

Well, I'll look into it more. It seems unless your a perfect citizen they don't give a shit. If I can get the $$$$ I'll go for it as long as I am the CEO forever and ever.

[BladeX]

you look at going offshore for the manufacturing process?

[iceman20]

Well, I'll look into it more. It seems unless your a perfect citizen they don't give a shit. If I can get the $$$$ I'll go for it as long as I am the CEO forever and ever.

From what I remember the business loans are pretty easy to get through the SBA.

Info there on how to incorporate also. Have you thought of a business structure? You definitely don't want to be a sole proprietorship because of liability issues. I always favored the S-Corp. or LLC, depending on the situation.

[UnluckyXIII]

you look at going offshore for the manufacturing process?

I'd rather keep it local, but if the tax benefits are right, I'll send the manufacture jobs to Antarctica.

Cash for me= better than me feeding someone else by theft. (Tax.)

[UnluckyXIII]

From what I remember the business loans are pretty easy to get through the SBA.

Info there on how to incorporate also. Have you thought of a business structure? You definitely don't want to be a sole proprietorship because of liability issues. I always favored the S-Corp. or LLC, depending on the situation.

I think, from what I have read insofar, that because of the nature of the business, I have to go full-blown corp since it's medical...

[iceman20]

I think, from what I have read insofar, that because of the nature of the business, I have to go full-blown corp since it's medical...

I'm sure you're right. There's costs involved in incorporating but you have to do it. You'll need a lawyer...

Anyway, the SBA site should have all the info you need.

[BladeX]

I'd rather keep it local, but if the tax benefits are right, I'll send the manufacture jobs to Antarctica.

Cash for me= better than me feeding someone else by theft. (Tax.)

tomorrow when i get on desktop ill search for a link that is a great resource for offshoring manufacturing shit...

if i forget remind me :>

[iceman20]

I met the guy who invented the "spin brushes" (toothbrushes) you see all along the shelves in the Walmart pharmacy. He sold the patent to PNG for $400 million.

Anyway...he met dudes in China to do the manufacturing and doesn't speak a lick of Chinese. Basically all he needed was a company that made tiny, cheap motors and found one in China.