TZ Startup Hot Seat | You Rock Guitar
Spotlight: LA Tech was a huge success as Efren posted last week. For those that missed it, there is a full rebroadcast on Techzulu.com. Each startup did a great job pitching their dreams and vision, but we want to dig a little deeper.
This segment we will call the TZ Startup Hot Seat and first to get grilled is Cliff Elion with You Rock Guitar.
Give Us the Fast Pitch
The You Rock Guitar is an Easy to Play Digital Guitar. The instrument is the first cost-effective MIDI and USB controller for home studio recording (MAC/PC/iPad). For live playing, it has 75 built in sounds and 75 backing tracks. It can also be used as a video game controller for Guitar Hero and Rock Band. Our instructional software; The You Rock Studio is a PC/MAC application using the You Rock Guitar as an interface to our downloadable music content, guitar lessons that targets the entry-level guitar market and experienced musicians alike. www.yourockguitar.com.
What made you decide to begin working on your product?
After working in the Music Industry for many years and being a guitar player, I was looking for a solution to play and record in a home studio environment. Up to now the only affordable solutions to access programs on the PC and MAC and iPAD etc .. have been based on keyboards – so guitar players have been left out. Having experience in consumer electronics, I was able to leverage low-cost parts to develop a high performance/price ratio device.
What is the market opportunity?
The hardware opportunity: The US fretted instrument market slipped in the 2010 recession 20% to $800 million. Entry-level fretted instruments (between $300-$600) have suffered a decline less than 10% … with a $200 product, this is our main market segment and we provide a very attractive solution with easy to use, high-performance features.
The mobile opportunity: The mobile and app market provides a great platform for apps to go with our instrument. The You Rock Guitar is compact and mobile (fingerboard is removable) and interfaces to all PC’s, MAC’s, iPads.
The software opportunity: Our learning software and downloadable content will complement the entry-level market with downloadable lessons and songs – the software communicates with the guitar and is a unique and fun interface for instruction.
How big is your team?
We are a small company with an outsourced sales team. Our facility is staffed with 8 people who all wear multiple hats covering Management, Marketing, PR, Logistics, Software Development, Warehousing, Shipping and Customer support
Are you Funded? How did your company get its initial funding? How much funding do you currently have?
Initial funding was through a PPM completed early in 2010, we raised $1.2M and used those funds for our startup operations, initial marketing and development costs. We started sales in Q3 2010 and generated significant sales revenue. We are looking for further funding to grow our software and online presence.
What made you want to start your own company?
insanity
Have you ever needed to change direction/focus with your company? If so, what was that like?
We have had two major changes in direction. One in Management and another in target market. The management change was traumatic, but was required to achieve transparency in the company and reset from marketing blunders. The biggest change of direction has been driven by the market and we are in process of responding to what the market is telling us. Our original target was video gamers who want to move from Guitar Hero and Rock Band to real guitar – but we were unable to compete with the lower cost controllers in the marketplace and were unable to sufficiently demonstrate the benefit of our product.
We are listening to the Market now, customer base, trade show response etc. is pointing us to the entry-level and instructional guitar market. This market segment is also the most robust of US fretted instruments. So far home recording and home studio composers and musicians have come to us because of the value and performance of the product.
How do you deal with competitors? Do you keep up with other companies doing similar things?
This is obviously critical and even though we are the first with this kind of product we are seeing some of the big guys come in with their own offerings. We see this as good because it legitimizes the market, but it is also a huge challenge because we are small and resource limited.
What is the most difficult and best things about being an entrepreneur?
Working all the time
enjoying it
Describe your company’s culture.
We are so small and new that we are still developing a culture, but the key ingredient is the people and we have people that are all motivated by the product and what the product represents. This is the beauty of being involved in music – it is exciting for everyone involved whether they are players themselves or just fans. It is an environment where people believe in both the product and what they are doing, and are enthusiastic to do it.
What’s one of your most successful decisions?
This is a difficult question because there have been so many hard ones and we are still waiting for the results …. ask me next year!
Where have you struggled? What mistakes have you made that you believe other entrepreneurs could learn from?
Keep small and lean be able to adapt quickly to change. Listen to the market and make sure to treat sales estimates with a grain of salt … they are always overly optimistic.
Who are your three most influential entrepreneurs?
More like inventors: Thomas Edison, Tesla, The Wright Brothers ….
What does “failure” mean to you?
giving up – there are so many roadblocks and setbacks, but you have to be able to keep going. Short-term failures do not mean failure.
What does “success” mean to you?
waking up in the morning and looking forward to going in to work!
What is coming up next? Your goals, new products, new direction? (Either for you as an entrepreneur or for the company as a whole)
Further product and software integration – improved hardware and improved quality. This year we need to focus on sales and developing our internet presence.
Cliff Elion you just survived the TZ Startup Hot Seat.
