Jim Fleig

Holley, NY (USA)
Role(s):
Founder/Owner/Principal

CNC Productivity

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Location: Holley
Industry: Manufacturing
Year Founded: 1997
Number Employees: 1-10 people
Business Stage: Growth (profitable)
Entity Type: "S" Corporation
Description: CNC machinery troubleshooting and repair services. Installation, operator training, etc. Also, engineering services (CNC control retrofit, electrical wiring diagrams, mechanical drawing, reverse engineering, device invention / process modification to solve manufacturing issues, etc.). Areas of value: - Continued and increased business troubleshooting and repairing CNC machinery. Growth to 5 person shop providing machinery repair services, machinery rebuilding, automation engineering services, design and construction of customer automated machinery and specialized machining services. - Sale of inventions. My inventions and process diagnoses have saved companies up to 1 million per year. The CNC machinery repair requires me to invent on almost every job because in the field the tooling used to assemble the machine is not available. The machine still has to come apart, be repaired and be reassembled. Proof is available that I am not just a dreamer. Present me with a technical problem and the amount that will be paid for the solution. My definition of solving the problem is not limited to an idea. It is an idea that I would be able to design, engineer, build and install. In the case of a process, the idea would be defined and implemented to achieve the project improvement goals. Whether the need is for a device or a process, if I am able to solve the problem then I will give consideration to the amount to be paid for the answer and if it is a reasonable market value I will take on the project and succeed. I have been this doing for many years. This is the first time I have considered seeking investment. From the reading that I have done on this website, it would seem that the best fit for this particular situation would be an angel investor with a technical background that would participate both financially and managerially (not full time, on a part time advisory basis). With the ability to communicate via the Internet, it is possible that a relationship could be developed, maintained and grown remotely. An example of the type of arrangement that would probably work well is the partnership that occurred between Matthew Boulton and James Watt. This partnership resulted in the manufacture of efficient steam engines, launched the industrial revolution, made both men very wealthy during their lifetimes and the company grew substantially from its original size and lasted 120 years. Several individuals / organizations have already made contact. It is already obvious that this situation does not fit the standard investment profile (need for very large sum of money, large amount of assets available as security, high volume established revenue and well established prospects for significant growth). This situation is very small (my wife and I), the greatest business assets are my honesty, technical ability and work ethic and the goal is to grow to small shop (my wife and I and 5 persons). The real money in this situation is in the inventions. As it was in James Watt's situation. To date, my success rate for the inventions or process improvements that have been created is 100%. The end results have either met my initial predictions or exceeded those predictions. Investment amount: $250,000.00 Interest - repayment 7% 7 year term 1 year no payments 6 years pay principle and interest total $316946.28 Note: this is not where the "real" money would be realized. See "Inventions" below. Inventions: Currently there is a consumer item that, based on very conservative market research, should realize a gross wholesale of $33,000,000.00. If the royalty on the wholesale price ($6.25) were 1% then that would result in approximately $2,000,000.00 in revenue. If the manufactured cost was $4.00 / item then the manufacturing profit would be approximately $12,000,000.00. The interest rate above is not adequate compensation for investing. Negotiating a percentage of the revenue from the inventions would provide more return on investment than is usually requested or realized (15 - 20%). There are many more inventions. My track record to date has been one of 100% accuracy. I am not brilliant or a genius. I am honest. The potential for success can usually be evaluated relatively easily by open and honest evaluation. The greater percentage of my ideas (by a large margin) just get tossed because they do not pass the muster of reasonable practicality or marketability.