ChopSaver is an all-natural, herbal lip balm created by professional trumpet player Dan Gosling. Used by musicians around the world, it is now recommended by dermatologists as a superior lip product. Our mission is to make a real difference in the quality of life for musicians and non-musicians alike.

ChopSaver has been in business since 2004. Over that time, we've developed a uniquely formulated lip balm product and have gained traction in our initial niche segment. ChopSaver is now sold in over 7,400 CVS/pharmacy locations nationwide. In addition, ChopSaver is available in over 100 Midwest Kroger locations, Amazon.com and hundreds of music and specialty retailers around the world including physicians’ offices.

With production and sales processes in place, revenue track record established, ChopSaver is poised to continue driving adoption in our musician and dermatologist customer segments as well as begin expansion into broader categories.

The money raised will go towards increased marketing and advertising and increased production.

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Dan Gosling, CEO

Financial Summary

Previous Fundraise Summary

Security Type Convertible Note
Minimum Investment $2,500
Interest Rate 6.00%
Term 3 years
Investor Eligibility All Investors

Offering Materials

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How it works: Investors loan funds to the business which convert to equity at a discount to the price of the next round of equity financing.

Use this calculator to get a better understanding of different potential outcomes when investing through a convertible note.

This is a simplified calculation; exact equity provided through a convertible note will depend on the conversion mechanics used in the note offering as well as the terms provided in the future equity offering.

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What future valuation discount is being offered?

We have assumed investors will accrue interest on their convertible notes at an 6.0% rate over 36 months for this analysis.

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If the amount was not converted, the full investment amount plus interest ( ) would become due and payable after 36 months.

Convertible Note Basics

A convertible note is an investment structure that allows a company to take on funding in exchange for equity at a later date. At the time of the investment, the funds are considered debt, but at some date in the future, those funds (+ any accrued interest) convert to equity. A discount is typically included in a convertible note that provides investors equity at a cheaper price than what equity is being offered at, at the time of conversion. This discount compensates the investors for investing at an earlier date. If the notes have not been converted to equity by the maturity date (often 12 to 24 months), the debt plus interest is due and payable to investors.

A convertible note can be a good tool for a company to raise funds to help bridge to a larger equity offering to occur at a later date. For companies that are early with respect to customer and revenue traction it can be difficult to set the valuation of the business. A convertible note does not require a valuation to be set, offering a simpler transaction structure to close a smaller amount of funding. The company should then be able to more quickly close and deploy the capital to make progress with the business.

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Financials

This is an overview of the previous and planned financings of the business, including the capital needs the business is looking to cover in the current financing.

Funding Uses for Target Raise ($50 k)

Marketing/Sales
$47,500
Description Our priority with this proposed fundraise is to invest across a few marketing channels that we've seen produce sales results in the past. The mantra of any consumer product growth plan can be summed up in four words - awareness, trial, purchase and re-purchase. Working backwards, we know once people try ChopSaver, they are highly impressed with the product’s quality and effectiveness and our re-purchase rate is extremely high. We have made the “trial” part of the equation easier with our single dose sample packets which are unique to the lip balm industry. That leaves awareness as the major hurdle. Aside from TV, radio and billboards, in the past we have used a combination of all marketing methods available including direct mail, email, social media, PR, trade shows, print ads, and live events. We believe a combination is necessary in order to reach many people many different ways. Having said that, the attached document highlights the breakdown of our marketing priorities and estimated costs based on past learnings.
Timing A one-time payment when investments close.

Funding Uses for Max Raise ($500 k)

In addition to target raise

Marketing/Sales
$427,500
Description Our priority with this proposed fundraise is to invest across a few marketing channels that we've seen produce sales results in the past. The mantra of any consumer product growth plan can be summed up in four words - awareness, trial, purchase and re-purchase. Working backwards, we know once people try ChopSaver, they are highly impressed with the product’s quality and effectiveness and our re-purchase rate is extremely high. We have made the “trial” part of the equation easier with our single dose sample packets which are unique to the lip balm industry. That leaves awareness as the major hurdle. Aside from TV, radio and billboards, in the past we have used a combination of all marketing methods available including direct mail, email, social media, PR, trade shows, print ads, and live events. We believe a combination is necessary in order to reach many people many different ways. Having said that, the attached document highlights the breakdown of our marketing priorities and estimated costs based on past learnings.
Timing A one-time payment when investments close.
Documentation

Remaining funding uses include cash buffer and Localstake Marketplace fees. See offering materials for full details.

Q&A

Provide us with some background on your products and services.

There are two versions of Gosling's Original ChopSaver Lip Care, both of which came in the standard lip balm tube delivery format. One is 100% Natural and the other contains SPF (sun protection factor) 15. The product is sold online and in over 9,000 US retailers including CVS/pharmacy stores nationwide.

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What is your product development timeline?

Our largest distribution partner, CVS/pharmacy, currently sells our SPF 15 item. Next year, we will request they add our 100% Natural version as well. With increasing sales in CVS, we will be able to add new retailers including Walgreens, Kroger, Rite-Aid and many others. Our goal is 40,000 stores in the next 3 years. 

What is your production process?

ChopSaver products are produced by Raining Rose, Inc. of Cedar Rapids, Iowa. They are an award-winning, FDA audited company that has enjoyed phenomenal growth and success since their founding in 1996.  Their primary focus is creating and making lip balm and related products for several clients, many of which are enjoying tremendous success in the marketplace as a result of Raining Rose’s top notch customer service, high quality products and fair pricing. The company moved into a new, 122,000 sq. ft. state of the art facility in October of 2012.

Production normally takes between 5-6 weeks from recipt of a purchase order. 

Gallery

What is your competitive advantage?

ChopSaver is the only commercially available lip balm that contains the herb Arnica Montana, a sunflower extract. Arnica is a natural anti-inflammatory and its healing qualities have been proven in numerous medical studies. ChopSaver is also the only lip remedy designed for and marketed to wind and brass musicians, people for whom good lip health is essential. The product now has a substantial fan base in the dermatology world and also brings relief to cancer patients who suffer from irritated lips due to drug side effects and medical treatments.  

Who are your competitors?

Our competitors are large and well-known including ChapStick, Carmex, Blistex, Burt's Bees, and, more recently, EOS. Ours is the only one that addresses a specific market and a specific need and utilizes a unique ingredient - Arnica.

What market(s) are you in?

The lip care category has a market size of approximately $1 billion in US annual sales when one factores is all possible retailers including food, drug and mass along with airports, convenience stores, truck stops and military bases. Its a highly fragmented space with over 1000 products most of which represent a fraction of the total annual market. ChopSaver has the opportunity to cut through this noise based on its unique  ingredients and our ability to target key markets including (but not limited to) music educators and the medical field.

In order to successfully compete in the market, we will "influence the influencers." Band directors have hundreds of students in their classes and physicians have, in many cases, thousands of patients under their care. By marketing to thousands of trusted teachers, doctors and nurses, we can reach millions of end users. It is crowded market, but our placement in CVS allows us access to both our so-called "niche" market and a wider consumer base. While there is competition in this field, it is also an industry that historically rewards innovation and creativity. 

What is the composition of your current team?

Dan Gosling – Founder and CEO - Classically trained musician. “Street” trained entrepreneur
        •  Gary Nead – CFO (Professional Business Services of Indiana) 30 years of managerial and finance experience. Employed on a contract basis.
        •  Curt Behrens – Retail Sales Management and Logistics. 30+ years of consumer goods sales experience. Employed on a contract basis.           
        •  HendrixRaderWise (Indianapolis) – Award-winning marketing and product design firm
        •  The Bohlsen Group (Indianapolis) - PR and Social Media. Uniquely suited to leverage the ChopSaver market 
        •  Raining Rose Inc. (Cedar Rapids, IA) – Contract Manufacturer. An award-winning, FDA audited company  
        •  John Hanak – Advisory - Entrepreneur in Residence, Purdue Foundry, Purdue University 

How do you sell your product or service?

ChopSaver is sold online and in over 9,000 US retailers including over 7,000 CVS/pharmacy locations nationwide.

How do you market your product or service?

As a brand with a unique and authentic story behind it, we utilize both social media and public relations to tell the story. The musical part of the brand lends itself well to YouTube and other use of video including Facebook, Facebook ads and Twitter. Additional marketing will include traditional methods including email, direct mail, and product sampling both through the mail and at live events. Many of these tactics are done through our key influencers including school band directors and physicians including dermatologists and oncologists.

 

 

 

Who are your target customers?

The product was created for musicians and they remain our main target. People that take medications that cause dry lips are another key demographic. Both groups represent millions of American consumers. With those two groups as our base, we will take the message of our brands superiority to a more generalized audience.

 

Do you have current customers?

Our "end users" are hugely passionate about the brand. Our direct customers (the retailers) are how we will reach those "end users."

What is your current customer pipeline?

CVS/pharmacy is our largest customer to date. We also sell through music industry distributors into music retailers.

Team

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Dan Gosling

Founder and CEO

ChopSaver creator Dan Gosling has enjoyed a highly successful career as a professional trumpet player in Central Indiana and surrounding areas. A native of Elkhart, Indiana, his music degrees come from the University of Illinois where he was a Bronze Tablet Scholar and Northwestern University. A former member of the Indianapolis Symphony Orchestra, Dan has also taught at both Butler University and Ball State University and also served as both Principal Trumpet and Personnel Manager of the Indianapolis Chamber Orchestra. Having made the successful transition from inventor to entrepreneur to business owner and manager, Dan’s creative energy, people skills, and the discipline he learned while training for a rigorous performance career have prepared him well for this next phase of his life as the face and leader of the ChopSaver brand. As both a leader and team builder, Dan has been able to assemble a company that both compliments his strengths and fills in his knowledge gaps.

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Curt Behrens

Retail Sales Manager

As president of P2B, Inc., Curt Behrens and his team bring extensive experience in marketing and sales in the North American retail mass markets with specific expertise in brand and product launches. During his corporate career, Curt was instrumental in the initial launch and phenomenal growth of Rembrandt® oral care, Pharmenex® Nutritional Supplements, and Butler GUM® dental products. Founded in 1997, P2B has been a pioneer in identifying and growing the homeopathic and halitosis categories through the successful North American launch of Similasan® and TheraBreath® as well as the retail expansion of Stiefel® skin care. P2B was also involved with the re-launch of such well-known brands as Contact®, Geritol® and Vivarin®, as well as the launch of Alkalol® Nasal Rinse. P2B is extremely well-versed in OTC product marketing and sales with companies of all sizes and understands both the challenges and the opportunities inherent in that space. As a premium, all-natural brand in a commodity driven world, ChopSaver represents the type of product line P2B knows how to position and sell effectively. Curt and his firm are hired on a commission basis.

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John Hanak

Board Member

John Hanak, Entrepreneur in Residence and Venture Funding Relations Officer at the Purdue Foundry, is the former Statewide Director of the Purdue Technology Centers. He has held officer-level positions at a Fortune 500 metals manufacturer, a middle-market machine-building company and a technology product development firm. Additionally, Hanak co-founded a technology commercialization and consulting firm (North Riverside Partners) and a small investment partnership (CN Associates).

Prior to co-founding North Riverside Partners in 2003 and arriving at the Purdue Technology Center of Northwest Indiana in 2005, Hanak served as President, CEO and board member of Digital Innovations, a Chicago-based technology product development and marketing firm. Before joining Digital Innovations, he spent more than 20 years in the steel industry and was a Vice President at Ispat Inland Steel, a $2.3 billion subsidiary of Ispat International (now ArcelorMittal), with responsibility for all administration and legal matters.

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HendrixRaderWise

Partner

All design work for the ChopSaver brand is created by HendrixRaderWise, including logos, packaging, website, printed materials and digital images. HRW is an award-winning design firm based in Indianapolis. Their expertise covers the entire spectrum of product design including logos, ad campaigns, packaging, website and app development, building interiors, TV, print and radio.

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Third Street

Partner

Experts in all marketing venues including social media, the THIRD STREET partners bring with them over 50 years previous experience with some of the biggest brands in the world including KFC, Cabot Wood Stain, Gatorade, Coors and Kraft.

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Raining Rose, Inc.

Partner

ChopSaver products are produced by Raining Rose, Inc. of Cedar Rapids, Iowa. They are an award-winning, FDA audited company that has enjoyed phenomenal growth and success since their founding in 1996. Their primary focus is creating and making lip balm and related products for several clients, many of which are enjoying tremendous success in the marketplace as a result of Raining Rose’s top notch customer service, high quality products and fair pricing. The company moved into a new, 122,000 sq. ft. state of the art facility in October of 2012.

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Professional Business Services of Indiana

Partner

Professional Business Services of Indiana, LLC provides financial and bookkeeping services for Good for the Goose Products, LLC on a contract basis. PBS Indy provides services that enable growing companies and entrepreneurs to do what they do best; build, market and sell products and services to customers.

PBS Indy exists to provide all back office and financial management services. Their principals have over 25 years of management experience in privately and publicly held businesses, in a variety of industries.

PBS Indy strives to provide customers a cafeteria style selection of services, custom designed to meet the needs of each individual customer. PBS Indy has assembled a team of professional staff and contractors to provide the highest level of services for each client.

PBS Indy professionals have worked in the areas of Manufacturing, Distribution, E-commerce, Contracting and Professional Services. Additionally, PBS Indy staff have been key in preparing companies for public offerings and maximizing the value of companies that wish to sell all or part of their business.

About ChopSaver

Entity Type LLC
State Organized Indiana
Founded August 2004

Headquarters

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Risks & Disclosures

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Not Applicable

Describe your company's organizational structure

Good For The Goose Products, LLC is the parent company of Gosling's Original ChopSaver Lip Care.

Who owns your product/service?

"ChopSaver" is a registered trademark as well as the tag line "For People with Lips" and "For Musicians with Lips."

The ChopSaver formula is a trade secret and has proven to be difficult to replicate with many nuances regarding proportions, manufacturing temperatures, and even the type of equipment used to mix and formulate.

Do you have any shareholder loans?

Yes. Our sales and marketing partners have agreed to defer some payment until revenue increases.

What are the legal and regulatory requirements in your industry?

ChopSaver is an all-natural product and is not subject to any regulatory permissions. The sunscreen we use is what is mandated by the FDA and every batch is tested before it is released from our facility.

An investment in the Company involves a high degree of risk, and should be regarded as speculative. Prospective investors should carefully consider these investment risks, among others, in addition to the other information presented in the Offering Materials, in evaluating the Company for investment. The risks listed herein are not a complete list of potential risks facing the Company and it may encounter unexpected risks in the future, which, may adversely affect its performance.

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