Calling The Shots

Steps

From the idea stage to the Finished product:

1. Stage = Market research
Money Raised = N/A
Source = N/A
Goal = Establish that bar and nightclub owners would buy the Barmate.

2. Stage = Prototype
Money Raised = $15,000
Source = Mike Mogadam's credit cards
Goal = Prove the system would work.

3. Stage = Verification
Money Raised = $3,000
Source = Mike Mogadam's credit cards
Goal = Exhibit at a convention in New York City to verify customers were interested after seeing prototype and knowing $10,000 to $20,000 price.

4. Stage = Final
Money Raised = $100,000
Source = Family and friends
Goal = Design and produce a system to test in a nightclub.

5. Stage = First production run
Money Raised = $300,000
Source = SBA
Goal = Produce a small-production run for initial sales.

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This article was originally published in the April 1999 print edition of Entrepreneur with the headline: Calling The Shots.

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