Start Up Wakeboard Company

Would you invest in a startup? If so, what would you look for, what would get you to take the plunge, and what would you expect in return, realistically, over 5 years?

Also, given the chance, if all of this was true and possible, would you actually do it?

Just curious to hear what others are thinking.

I think the most operative word to answer the majority of your questions is "NO". Unfortunately the wake industry is not a money making endeavor. There is a relatively tiny market and there are some major players that make it tough for the little guy.

As a hobby, I LOVE wakeboarding, but for a business, I would definitley look elsewhere to invest my money. Its a tough industry to make a profit in and there are a lot of other industries where you could make a lot more money.

I think the most operative word to answer the majority of your questions is "NO". Unfortunately the wake industry is not a money making endeavor. There is a relatively tiny market and there are some major players that make it tough for the little guy.

Thats kinda pessimistic. I think it can be done but its hard to do the right way. If you have someone experienced in the wake industry and innovative people who love the sport and will work hard to get the company up it can go well. Look at the companies that have started up recently and there's really only Company that's gone down, but Ronix, Remote and Slingshot have all survived quite successfully and newer companies like Sine, Humanoid, Waleology and CTRL seem to be doing pretty well and have grown and good following. However, there's really no reason to start up a company if all you're going to do is the same as everyone else and no one will invest in that kinda company. You gotta bring something new to the table (and jaysus patent it if you can). Really you shouldn't be looking to sell the idea of a new company to investors so much as selling the people and ideas present in the company.

My 2 cents

It's not pessimistic as much as it's realistic. I've been involved with and observed this industry for a lot of years.

I wouldn't call Ronix or Slingshot new companies. Ronix was created by the family with the most experience of building skis/boards in the world, complete with a track record, infrastructure and contacts to make product from day one. Slingshot is just new to the wakeboard game, they have been in the windsurf/kite game for a very long time.

I'm sure if you were to ask the other companies listed they would likely report that their margins are thin and there is not a lot of $ to be made. Look at Gator, it has been around for years and if not for the support of one very wealthy "investor" it would have folded years ago.

So realistically in 5 years, I would hope that the company is still operating. Any sort of profit would be icing on a likely non-existent cake.

All very interesting responses. I agree that it is a difficult place to break into, but don't you see that the sport could really grow with the cable parks that are going up? Till now you had to have literally 10,000 or more in cash to get into it. Now all you need is a couple hundred the first year (and if you keep your board in tact) just a couple hundred every year thereafter. Don't you think that could mean that there would be more people to sell to?

Originally Posted by lcannon13

don't you see that the sport could really grow with the cable parks that are going up?

yeah, but what about the rest of the country?