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smart-salt-logo

Smart Salt

Consumer Goods

Fundraising Goal:

$500,000

Our Role:

INVESTMENT PACKAGING

Turnaround:

12 WEEKS

Result:

Fundraising Goal Met

Smart Salt, Inc. is a California C corporation founded in early 2007 by Juhani and Tapio Maki to capitalize on a proprietary and patented balanced salt alternative that has the potential to revolutionize the alternative salt market category. The founders have invested about $450,000 in the development and testing of this unique and potentially ubiquitous product over the past 12 years.  The result is a new balanced salt alternative that meets with several huge market demands.  First, it helps satisfy a major demand for health-conscious food products that are low in sodium, while retaining the natural flavor of salt, and its preservative properties.  Second, it solves large problems for producers of high-sodium processed food products that are under intense pressure to decrease the sodium content in their foods. There is currently no product on the market that adequately satisfies all these requirements. Thus, Smart Salt is in a unique position to capture a significant share of these emerging markets.

Rather than entering the market as a manufacturer of balanced alternative salt, the Company intends to establish a licensing model following common conventions within the food industry.  Smart Salt plans to sell exclusive licenses to manufacture its patented formulation to leading processed food manufacturers in specific categories for between $2 million and $5 million, and a royalty of $0.03 per pound on all Smart Salt produced by those manufacturers.   The Company also plans to establish similar relationships in the wholesale salt and wholesale salt substitute markets, while charging a royalty of $0.06 per pound.   By aggressively pursuing this formula, Smart Salt will be able to generate much higher profit margins than it would as a manufacturer.  The Company expects to capture an 8% share of the alternative salt market by the end of three years, and garner premium prices due to the unique and beneficial properties of Smart Salt.

Morton, Cargill, Kraft, McNeil Nutritionals, and others are interested in the product, and are waiting to receive Smart Salt samples from an industrial source instead of the Company’s manually prepared lab samples. After receiving these samples, they will commence internal evaluations to assess the ability of Smart Salt to satisfy their requirements. Qualification of a factory to produce this Smart Salt will proceed soon after funding.

Products and Services

The primary product of the Company is the Patented formulation for Smart Salt, which is a blend of Sodium Chloride, Potassium Chloride, and a special Magnesium compound.  Smart Salt:

  • Tastes just like salt
  • Reduces Sodium intake by 52%
  • Eliminates the metallic after-taste associated with other competing products
  • Provides the widely-recognized health benefits of Magnesium
  • Can be used in food manufacturing and baking
  • Is well within Potassium and Magnesium recommended limits

The product development for Smart Salt was completed and the Patent applications were filed in 1999.  The U.S. Patent that protects the key Magnesium compound was approved in 2004.  The company completed a FDA pre-study with positive results, and also received a strong legal opinion supporting GRAS exemption from FDA approval requirements.

An estimated $10 trillion of business value from baby boomer-owned U.S. small businesses will need to provide an exit event for their owners over the next decade as boomers retire. These events can be in the form of shutting down, selling to a family member, selling to management, initiating a partner buy-out, selling to a competitor, selling to a private equity firm, or selling to an outside individual. Most business owners are looking for a qualified buyer, however, there is currently no simple and reliable way to find prospective buyers. A similar challenge faces serious business buyers. A simple process for finding and qualifying businesses for sale does not exist today. While there are many business brokers and websites that promote businesses for sale, there is no uniform and streamlined system for matching qualified buyers and sellers. Bizware’s integratedTom$core and BizConnectNow. com solution is designed to overcome these prevalent challenges, and quickly become the nation’s premier platform for bringing qualified business buyers and sellers together, along with all the professional services and strategic partners necessary to consummate a successful transaction.

BizConnectNow.com’s target market is anyone interested, motivated, and qualified to buy or sell a small business. BizConnectNow.com will provide a powerful arena where serious buyers and sellers will be able to meet, match, and close deals. To achieve this objective, Bizware has secured the exclusive license to useTom$core, a highly reputable qualification regimen similar to those used in the banking industry, to prequalify business buyers, and to value businesses for sale, thereby legitimizing both sides of a deal. Tom$core evaluates objective and subjective variables in order to derive an overall point score that is used to make qualification determinations.This process enables business buyers and sellers to save both time and money. It also eliminates unqualified buyers, and those who are not currently serious about buying a business. On BizConnectNow.com, buyers will only be shown businesses they are prequalified for and eligible to purchase. Both buyers and sellers will be able to access qualified strategic partners who can help with virtually any aspect of the business sale process.

BizConnectNow.com is similar to existing competitors in that it lists small to medium-sized businesses for sale. However, the Company will be significantly different by being the first online platform with a prequalifying component to connect sellers with appropriate buyers from the start. Today, all leading business-for-sale websites are essentially just online classifieds, and they are primarily advertising supported. In contrast, BizConnectNow.com adds real value and efficiency to the buying and selling process. The Company takes price as an obstacle out of the equation, and allows serious qualified sellers to meet serious qualified buyers. BizConnectNow.com also enables them to connect with each other anonymously, and ask questions to determine if the other side is serious before meeting. Buyers and sellers can also upload all documents necessary to close and fund a deal, and provide access to trusted support professionals.

The end result is that for serious business buyers and sellers, BizConnectNow.com can help reduce the average time it takes to find, qualify, and close a transaction from about 2 years down to less than 6 months.

Bizware, Inc. was founded by banking, commercial lending, operations, and technical veteransThomas Meyer, Craig Charak, and Erik Heuser in 2004.

You need growth capital. We can help.

250

million dollars raised since 2004.

100

companies served.

10

plus years of experience.