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The day that a member of the Colorado Rockies hit a World Series home run in a pair of men's Saxx underwear was a good day for Trent Kitsch.

The 27-year-old founder and president of Kelowna, B.C.-based Saxx & Co. had just introduced his high-performance men's underwear to the market and was testing them out on some of his baseball buddies.

"The players loved them and were wearing them every day," he says. Not bad for a line of underwear that started out as nothing more than an idea for a class project just a few months earlier. Mr. Kitsch played in the minor leagues shortly after university, helping him understand the importance of well-fitted men's underwear.

Mr. Kitsch had come up with his concept for comfortable and functional men's underwear for a project during his MBA studies at the University of Western Ontario. But even in its earliest stages he thought he was onto something bigger. "I treated the idea as much more, right out of the gates," he says. That meant creating a prototype, finding a manufacturer and developing a brand, as well as putting $18,000 of his own money behind it.

Since graduating this past spring, he's sold about 2,000 pairs of Saxx underwear, mostly through direct sales, and generated about $50,000 in revenue. And his product has gained interest from sports teams, such as the WHL's Kelowna Rockets, who are all now outfitted in Saxx underwear.

But one area where he has yet to break ground is with retailers: So far, he's struck no deals to have his product sold in stores.

To achieve that and to compete with major players in the field, such as Nike Inc., Mr. Kitsch needs a major injection of cash. In addition to his own money, he recently secured an investment of $50,000 (in exchange for 5 per cent of the business).

"If I want to give this business a shot, I need the capital legs to do it," he says. But Mr. Kitsch, who's seeking $150,000 to $500,000 in exchange for 15 per cent to 50 per cent of the business, isn't just looking for an investor to hand over a stash of cash. He's hunting for a strategic investor who also will act as a mentor and help him grow his business.

"I think I can do what I want a lot better, faster and easier with the experience of someone who's done it before me," he says.

What our experts say

Mr. Kitsch's strategy of seeking an investor who can do more than just fill up his coffers is right on the money, says Nicholas Graham, who founded world-famous underwear line Joe Boxer in San Francisco with $1,000 in 1985 and is now the chief executive officer of San Francisco-based Wonderbrand, a design and product development agency. "Money is just money, but people with money who understand the industry are exactly what a young company needs," he says.

Sean Wise, who serves as an adviser on CBC's Dragon's Den and is the author of Wise Words: Lessons in Entrepreneurship & Venture Capital, agrees: "Any new entrepreneur is better off taking money from someone who's been there and done that."

So where does an entrepreneur start? The first step is to identify which type of investor is most suitable. In Mr. Kitsch's case, an angel investor is the way to go, Mr. Wise says. "Banks tend to look for companies that are farther along on the growth chart," he says. "And venture capitalists typically do not invest less than two to five million dollars." Angel investors, however, are often high net worth individuals who have themselves achieved entrepreneurial success.

Mr. Wise suggests two routes for finding one. The first is through angelinvestor.ca, a not-for-profit Canadian organization that offers a directory of angel investors. "This is the more formal way to go, and it may not lead to an investor that's knowledgeable specifically in Mr. Kitsch's area, but these people are looking for opportunities to invest in," Mr. Wise says.

The second route is to approach high net worth industry people with the exact knowledge that Mr. Kitsch seeks. "Someone like Sara Blakely, who is the founder of Spanx, for instance," Mr. Wise says. "She may not necessarily identify herself as an angel investor but someone like that has knowledge that could serve Trent equally or even better than capital." But Mr. Kitsch doesn't have to stop there. The key is forming a relationship with such a person and then tapping into their network in search of an investor.

Another such potential investor would be Mr. Graham. His advice to Mr. Kitsch? Build the business as much as possible first. "If I was going to consider investing in a company like this, I'd want to see more meat on the bones of the company," he says, referring to more significant sales. Another sign of progress would be getting a sports chain to stock Saxx underwear on its shelves.

But even before growth, there must be a solid concept, Mr. Graham says. That's one thing a potential investor won't budge on. "People think money is going to cure all evil, but it's about the product. The product will always speak for itself." His philosophy is that a good product will attract strong management, another thing any fledgling company needs to be successful. And from there follows the money.

The product may speak for itself, but who speaks when it comes to deciding what the company is worth? Attaching a value to a new business is always tricky, Mr. Wise says.

"The real question isn't how much is the business worth, it's how much will someone pay you for it," Mr. Wise says.

Entrepreneurs have a tendency to make the mistake of trying to put a value on what their company is worth today. "But investors look at what it's worth in the future," he says. Most investors look for a return that's 8 to 10 times the amount they invested. Let them take the lead, he suggests, when it comes to determining company valuation.

And do not undervalue the pitching process itself. Mr. Wise likes the idea of an "elevator pitch," a two-minute spiel in which the entrepreneur outlines in a succinct and irrefutable way why their concept will make money.

Forming a connection with a potential investor is also key. "When you invest in a company, you're really investing in the people," Mr. Graham says.

Mr. Wise seconds that idea: "Anything an entrepreneur can do to build a bond will not only increase a valuation, but it will also increase the probability of getting an investment."