ChopSaver
A musician invented, dermatologist recommended lip balm.
Financial Summary
ChopSaver is not currently fundraising.
Previous Fundraise Summary
| Security Type | Convertible note | |
|---|---|---|
| Minimum Investment | $2,500 | |
| Investor Eligibility | All Investors |
Previous Fundraise Activity
$93,000 raised
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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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Business Plan
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.
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.
Related Links
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.
| Status | Owned |
|---|---|
| Location Type | Home Office |
| Comments | 2 rooms in my home serve as company headquarters. |
| Entity Type | LLC |
|---|---|
| State Organized | Indiana |
| Founded | August 2004 |
Dan Gosling
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.
Curt Behrens
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.
John Hanak
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.
HendrixRaderWise
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.
Third Street
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.
Raining Rose, Inc.
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.
Professional Business Services of Indiana
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.
Updates
ChopSaver growth in Q4
January 19, 2017
Hi Friends,
Just a quick note to say Happy New Year and to let you know that we have made some significant progress in the last 2 months. I am very pleased to report that recent marketing initiatives have caused CVS/pharmacy sales to double in the last 3 months and we are up 43% over this time last year. Our 2016 Amazon sales are also up 44% over 2015. But we must continue to increase our sales to finally become an established “player” in the industry as we know we are still just scratching the surface. We are crafting an updated marketing campaign for CVS as we speak and it will require additional funds to properly implement.
That we have accomplished this with such limited resources compared to our competitors is truly remarkable. If you or anyone else in your network would like to get involved in an exciting, $1 billion industry, please don’t hesitate to reply. The progress is real but the task remains a challenge and any and all assistance is appreciated.
Thank you!
All the best,
Dan
Dan Gosling
Creator of Gosling’s Original ChopSaver Lip Care
ChopSaver progress
November 23, 2016
Dear Friends,
I trust things are well with all of you as you prepare for the holidays. We continue to receive a steady stream of sample requests from schools and colleges across the country in addition to requests from dermatologists. Our sales in CVS are up 20% over last year and our social media campaign is driving 3-4 thousand NEW visitors to our website every week.
Steady progress to be sure and we are thrilled with what we were able to generate through Localstake. But we are still actively looking for supporters to help us during the next phase of negotiations with other retailers. Our competitors are well funded operations, but they are not selling ChopSaver and nothing can compete with the authenticity of our brand.
Attached is our most recent presentation and there are still ways for people to get involved. If you know of others who might want to join us, please don't hesitate to reach out to them as every day is crucial.
Thank you and Happy Thanksgiving!
Dan Gosling
Creator - ChopSaver Lip Care
ChopSaver investment - final hours
October 14, 2016
Dear Friends,
The ChopSaver investment opportunity will close at midnight Saturday night, October 15th. ChopSaver is a superior product, we have a great team and we have major customers in place. Over the next few years, we will get our share of the $1 billion lip care market. There is still time and we would be honored if you should choose to join us.
I would also like to publicly thank our friends at Localstake for all they have done to help us raise a significant sum of money at this crucial time. They have been great to work with every step of the way.
Thank you all for your consideration and a special thank you to those who have chosen to invest.
All the best,
Dan
ChopSaver offering closing this Friday, October 15
October 10, 2016
Friends,
New ventures are often successful simply based on the sheer vision and determination of the founder. Others are based purely on the superiority of the product and still others have great marketing as their main strength. At ChopSaver, we are proud to say we have all three!
As we begin to negotiate with larger investors, our crowdfunding offering on Localstake will be closing this Friday, October 15. ChopSaver matters because we are solving a need for both musicians and non-musicians alike in ways the other brands simply don’t. I urge you to complete your review in the coming days and reach out with any questions. We'd love for you to be a part of this great new American brand story and relieve a lot of dry, chapped lips in the process!
Thank you!
All the best,
Dan
Up 66%
October 4, 2016
Dear Friends,
If you are considering an investment in ChopSaver, now is the time. We are just starting our second year in CVS and can now make sales comparisons year to year. Due in large part to our social media campaign, our sales are up 66% over this same time last year! We have meetings scheduled for other major retailers this winter and we are determined to be the hot, new brand in the $1 billion dollar lip care category.
The offering on Localstake will be closing soon. If you are still interested, please complete your investment on the platform. We would be honored to have you join the fun!
All the best,
Dan Gosling
Creator of ChopSaver Lip Care
Business status: No current fundraise
You can express interest to notify the business of your interest in a future fundraise.
