NoseBudd™

One of the first steps Jim Gregar, Steve’s primary SBDC advisor, took was to introduce Steve to patent attorney Jim Hall, who advised Steve to invest in a provisional patent. A provisional patent secures a certain level of legal protection for an idea while its inventor pursues essential initial research. Steve was also advised to attend trade shows with the NoseBudd™ prototype, so that he could demonstrate his product and the branding process could begin.

Jim recommended a feasibility study to determine the potential marketability of Steve’s idea. Undertaken through the SBDC’s Collegiate Management Assistance program, the study was conducted by a team of students in an entrepreneurship class under the guidance of a professor in the Mendoza School of Business at the University of Notre Dame. The Notre Dame class analyzed the potential market for the product, likely profit margins, competition in the same field, and the break-even point. Steve says the study painted a picture of favorable market conditions and garnered him credibility with potential business investors and partners.

In January 2006, Jim introduced Steve to Ray Wolff of Teleos Healthcare, who was planning to visit some fabricators in China. That meeting led to negotiations for a licensing contract with Teleos. With the assistance of SBDC advisor Mel Waks, Steve was able to negotiate a very favorable contract. Mel continued to work with Steve through the fabrication process. When problems arose with the materials that were originally used to fabricate the product, Mel offered his expertise in engineering and R&D.

The plastic membrane that held the individual gel inserts together tended to crack when NoseBudd was frozen. It did not affect the product’s performance, since the gel portion of the product remained intact, but it did, however, affect the shelf life. Mel thought the problem was serious enough to warrant holding off until a more durable material could be found. This was particularly difficult for Steve as he was eager to forge ahead with production.

“But SBDC and Teleos were very clear: If we sell an inferior product and it breaks, it could hurt future orders,” Steve says. “In retrospect, it was good advice. I wouldn’t have known that.” NoseBudd™ Inc. began selling its products in early 2007 through Teleos Healthcare and 30,000+ units have already been sold! In addition, Steve has negotiated a major contract with CSL Behring, an international pharmaceutical firm specializing in products for people with rare diseases.

The SBDC’s support of Steve continues with on-going assistance in marketing and sales with advisor Staci Lugar Brettin and, in order to help him connect with a community of like-minded entrepreneurs, he has been introduced to an inventors group that meets regularly for ideas and support.