One of the first things Kris did, was call David Korn, who he had worked with from 2012, knowing he could get things done. His penchant for organization, planning, and business communications was just the thing he needed.
Preliminary studies were performed, and CSP was thought of as readying to buy a $500k Wohler Brush Machine, and David quickly determined that to lease or buy a half million dollar machine did NOT mean a ROI or return on investment of double or $1M in three or four years (20% risk capital rate), but necessitated $4M in seven years.
Think about it. You don’t give someone half a million dollars, to make 200k. Even a double might not be a good return, relative to risk and OTHER OPPORTUNITIES. It’s not that venture capitalist do not like to make $1M in four years. But you don’t just get your money back right away, in fact, sometimes it never comes back to them. So we would need, to make it worth an investors worthwhile, to be able to return THEM their $1M in not in four years, since you need to retain capital, but more like $2M in seven years lets say, and have them still own a chunk of a business worth millions and or retain capital moving forward to operate with, makes this a hard thing to do. You have to fund it going forward, not just BUY the machine….
As David always says–‘As complex as chess is, you don’t need to know everything and see all things, but just know the next move. But a good move. One single move!
It was not perfectly clear how to get going in North America. And like any start up, you need capital to get customers, customers to get capital, so you take seed money and off you go. So we were born.
Whatever it is, and its hard to tell in a narrative, but we decided to explore manufacturing our own brush in the USA. This was not an overnight idea, but by the end of the summer Kris and Bruce expected t know the next step.