Attract interest

As simple as it may seem, one of the easiest ways to begin the search for business start-up money is by advertising; but your ads need not be restricted to Web-based platforms, since you can also place ads in a local newspaper or a national publication featuring such ads. A good ad should state the amount of money you want – always ask for more money than you need so you will have a little room for negotiating. Your ad should also state the type of business you will operate (thus separating the curious from the truly interested), and the kind of return you promise to pay on the investment.

Another way to approach the money raising stage of your journey is to use a strategy employed by many party plan merchandisers by setting up a meeting at your home and inviting friends over for casual conversation. This strategy consists of a few basic steps which require you to simply explain your business plan, the profit potential, and how much money you need. Just give them each a copy of your prospectus and ask that they pledge a thousand dollars as a non-participating partner in your business.

You can check IRS rules but the last time I checked, you are allowed to have up to 100 shareholders (owners) in a Sub-chapter S corporation (S-Corp), whereas you can have unlimited members in a Limited Liability Company (LLC), so the findings from your search may also be helpful in your overall strategy.

Legal protection

One of the most popular money-raising methods utilized by large corporations is the issuance of stock in their companies to shareholders by way of an IPO (Initial Public Offering) pursuant to the rules and regulations of the Federal Securities and Exchange Commission (SEC); and you can do the same thing with one big difference: You can use a “registration exemption” under SEC Rule 504 Reg. D, pursuant to which your company can “sell up to $1,000,000 of its securities in any 12-month period to an unlimited number of persons…” without going through the SEC registration process.

Keep in mind that if you plan on using the strategy outline in the above paragraph, it would be wise to consult an attorney and, of course, a good tax accountant wouldn’t hurt either. In any event, it’s always a good idea to have an attorney and an accountant to help you make up your business prospectus anyway.

As you explain your plan to them and ask for their advice while asking, casually, if they would mind letting you know of, or pointing you in the direction of any potential investors they might happen to meet or any they currently know. Do the same with your banker and give him/her a copy of your prospectus while asking if s/he could look it over and offer any critiques or suggestions for improving it and, of course, to let you know of any potential investors s/he comes in contact with. In either case, it’s always a good idea to let them know you’re willing to pay a finder’s fee if you can be directed to the right investor(s).

MD, DDS and SBIC

Professional people such as doctors and dentists are known to have a tendency to join occupational investment groups and the next time you talk with your doctor or dentist let them know of your business venture and give each of them a prospectus while explaining your plan. One or both may want to invest on his/her own or – perhaps – set up an appointment for you to talk with the manager of his/her respective investment group. Either way, you win because when you’re looking for money it’s essential that you get the word out to as many potential investors as possible.

Don’t overlook the possibilities of Small Business Investment Companies in your area. Look them up in your telephone book under “Investment Services” because these companies exist for the sole purpose of lending money to businesses which they feel have a good chance of making money. In many instances, they trade their help for a small interest in your company.

Additional sources known as Business Development Commissions can be found in many states. These companies assist in the establishment and growth of new businesses and, as such, not only do they offer favorable tax and business expertise, but many of them also offer money or facilities to help a new business get started. Your Chamber of Commerce is the best place to check for further information of this idea.

Money finding pros

Industrial banks are usually much more amenable to making business loans than regular banks so, depending on the type of business you are looking to start, you may want to check out these types of institutions in your area; And while you’re at it take a look at insurance companies, because they are prime sources of long term business capital although each company varies in its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact.

It’s also quite possible to get the directories of companies doing business in your area, because other companies may want to invest in your business if they think highly of your idea and believe the potential for success is very good or better. Look for a company that can benefit from your product or service and, also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.

Finally, there’s the Money Broker or Finder. These are professionals who take your prospectus and circulate it with various known lenders or investors; but they always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want. There are many very good money brokers and there are some that are not so good, but they all take a percentage of the gross amount that is finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’ve arranged, and what kind of investor contacts they have; but do all of this before you lay out any up-front money or pay any retainer fees.

The mindset

There are many ways to raise money: From staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through a bank or a finance company. Start thinking about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business. Consider the feasibility of merging with a company that is already organized and has the facilities that are compatible or related to your business needs.

Remember, there are vast numbers of sources from which to obtain business start-up capital utilizing strategies ranging from creative financing to traditional lending and investing entities. Disregard the stories you’ve heard about tight money and start making phone calls, talking to people, and making appointments to discuss your plans with the folks who have money to invest. Your mindset must be that: There is more money now than there has ever been for a new business investment, and don’t waver from that mindset until you have exhausted all avenues.

The problem with most beginning “business builders” is that they don’t know what to believe or which way to turn for help, and they tend too easily to believe the stories of “tight money,” after which they set aside their plans for a business of their own until a time when start-up money might be easier to find. The truth is this: Now is the time to make your move! Now is the time to act! The person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you. Go get ’em … and good luck!

Admin’s Bonus Gifts 4U:

Whenever you start thinking about tax preparation and tax filing again, we have a real treat for you. Consumer Tax Service recommends a resource that is jam packed with tax tools, tips and financial calculators to help you prepare and file your taxes the right way. But if you need tax professionals to do the job for you, rest assured Concierge Tax Pros will do a great job for you. It’s a source highly recommended by Consumer Tax Service – Tax Pros working hard for hard working Tax Payers!

As a token of our appreciation the free ebook titled, Storytelling Marketing can be yours if you have any interest in the art of storytelling. All you have to do is download it here, enjoy the reading and learn how storytelling can be a powerful ally in any business or marketing pursuit!

If you get a lot of traffic – or a little traffic – to your website, but can’t seem to make any sales, today might just be your lucky day; because Consumer Tax Service is giving away a free Bonus copy of our Traffic to Buyers Conversion Manual, which we hope will be a big help to you in your efforts to convert traffic into buying customers and money in your pockets. Get the BONUS Manual Plus A Second FREE Report Here! Good luck with it and Thank you!

SPONSORED  As an Amazon Associate I earn from qualifying purchases.

SPECIAL CTS OFFER!

Digital Business Tools | Top Quality • Best Price!

Free Password Creation ebook with any purchase!