Private Placement Memorandum: How to Get the Investors You Need

By James Scott

Entrepreneurs are being turned onto Regulation D in droves. Regulation D Rule 504, 505 and 506 allow companies a more lenient fund raising process than those who choose to go public by other means. In the past year I've seen more PPM consultants pop up on the internet than ever before and I have to admit I'm concerned. As a veteran in this field I've seen it all, now we have a legion of self proclaimed Reg. D gurus who buy templates, add some text and tell their clients that they are delivering a customized offering memorandum; here's where things go bad and a difficult situation gets even worse. You have this worthless document, now what?

You need to gain the confidence and capital of accredited investors without soliciting as dictated in Regulation D Rule 502c. Now you have a worthless document that you can't solicit investment capital for (which your guru consultant never told you but took your cash anyway) so how are you suppose to raise funds for your company? First, you'll find that you'll eventually need to make your way to an actual PPM author, not a broker so that you can get a PPM that protects you from lawsuits and gives the investor a real breakdown of the upside and downside of your business.

Next you'll need to find a "Investor Finder", yes this is an actual term for an individual or corporate entity that is completely submerged in the accredited investor realm and is able to match your opportunity with friends that he/she has in their database of real, accredited investors. This is the second half of the PPM equation.

Don't kid yourself and don't allow yourself to be lied to; you're going to need a seasoned professional to help introduce you to investors that have the capital to help you get to where you need to be. Friends, family and employees will commit to investing in your company until your PPM is completed and it's time to make good on their commitment; all of a sudden little Johnny needs braces and Sally is in the hospital with pneumonia, this happens all the time. Now what? With a real Private Placement Memorandum and a solid Investor Finder you're problems are basically over. Investigate where the author and I.F. stand in the Internet public domain and after you find a company that meets your needs, get moving and start raising capital.

The internet tells all when it comes to reputations, you'll be able to tell the difference between a seasoned veteran and a startup consultant after on Google Search and a phone call. A PPM can make raising capital quick and easy if you have the right firm in your corner. - 32383

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Accredited Investor Lists and Accredited Investor Database. Where Do You Find The Best Investor Lists?

By James Scott

As the economy worsens it's getting more and more difficult to fund business ventures. After you've gone through the basics of a well written business plans and a private placement memorandum, where do you go from there? One issue that entrepreneurs come into is that they will get stuck on a link wheel that keeps them bouncing from one scam site to the next and they can waste months chasing after investment capital and at the end of the day have nothing but an empty bank account to show for it.

The latest and greatest scams are the omnipresent 'shelf corp.' or 'aged corp.' scam which claims to be able to get you hundreds of thousands of dollars of credit based off of a phony D and B rating and a credit score based off of bogus trade lines. This is an expensive scam, with most of these shelf corporations running anywhere from $8,000 to $20,000. The reality is, you can't get funding with a shelf corp. No one has or ever will get funding from this fraudulent concept. Another scam is the 'forgivable loan' program that is supposedly based in some offshore platform trading process where it allows a company to loan millions of dollars to an individual based off of the humanitarian aspects of their business model, oh, I forgot to mention, they usually require a mandatory cash deposit equal to 20% of the amount of the forgivable loan.

It sounds crazy but professionals that become desperate for funding fall into this trap all the time. The truth is, there are ways to get funding with a credit check using a private placement memorandum and there are companies out there that will make a loan to a company based mostly in the strength of their business process. Actually, if you have a good business model and a solid executive staff there are many companies that will give you money such as accredited investors, private investors, private equity firms, hard money lenders, SBLC collateralize lenders among others.

Just do some research under terms like: list of investors, list of private investors, list of hard money lenders, investor database, list of venture capital firms, private money lenders directory, investor list etc. and find some of the newer online databases that have come into existence within the past year or so. These sites are valuable because they came online when the economy was at it's lowest point so their funding sources are composed of innovative global contacts that are actually lending in this fickle economic environment and not the oblivious land of yesteryear.

The funding game has changed and the process of obtaining capital is more difficult than ever. Arm yourself with a good business plan, strategic PPM and a solid online investor database to raise capital quickly and easily. - 32383

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Take Your Small Business Public

By James Scott

Venture Capital Firms and hedge funds have dried up. Scams like shelf corporations and platform based funding are on the rise so where can an entrepreneur turn to raise capital? It's sad to be faced with the reality that legitimate fund raising methods have fallen into a minority position in today's depressed economy.

Company owners still need expansion capital, start-up companies need seed capital, how can the owners of these companies bypass the learning curve set in place by the online scammers and find the legitimate ways of raising capital? There are two solid ways of raising capital that are supported by the SEC and can have you raising capital without the drawbacks of dealing with people that just want to take your money and run, Private Placement Memorandums and OTCBB.

First, Private Placement Memorandums allow the business to raise capital under the umbrella of three Regulation D rule exemptions: 504, 505 and 506. Also referred to as a PPM or Offering Memorandum, a Private Placement Memorandum allows you to raise capital, legitimately with an SEC supported and approve process that uses the laws pivoting off of the'33 Securities Act that helps entrepreneurs raise capital legitimately and safely. All are protected with a well written PPM.

If you're looking to raise capital in more of a 'public' setting, check out the almighty OTCBB (over the counter bulletin boards), be careful on this one, there are several consultants and broker dealers that will take your money and walk away while you stand there with an entity that is, umwell, worthless. For an otcbb to be successful you need the back end support and ongoing consulting assistance of people that are completely submerged in the industry and know their way around so they can guide you around the trouble makers and into a world of massive corporate growth and funding nirvana.

If you are looking for real, honest, fast acting funding solutions the private placement memorandum and the OTCBB are your safest bet. Steer clear from the bogus formations such as shelf corps and platform and leased instrument based funding, they will only result in losing time and hard earned cash for your company. - 32383

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You Can Easily Go Public With Your Company

By James Scott

Are you a business owner raising capital with a Regulation D Rule exemption (504, 505 or 506) also referred to as a Private Placement Memorandum, PPM or Offering Memorandum? If you are using this mechanism to raise capital then you'll, no doubt, have to have a solid comprehension of the most distinct and important part of the Private Placement Memorandum referred to as the 'Offering Circular'.

When your consultant or attorney is asking you for details on everything from business location to management, from dividends to risk details, you need to make sure that this information is complete and accurate. You'll need to audit the documents after they are completed. A solid Offering Circular has kept countless companies from being sued by investors that didn't get the investment return they were anticipating.

While the business plan is meant to grab the initial attention of the investor or funding source, the Offering Memorandum is meant to spell out the down and dirty details of the venture so that you are protected from lawsuits down the road, while simultaneously exposing the various ins and outs of your venture to give a 'reality check' to the investor before they hand over the cash.

The offering circular needs to be powerful yet very compact without the redundancies of using space to say the same things over and over again to pull the investors attention from the negative to the potential profit margins or management's impressive pedigree. With all this said, yes it's true the offering circular is one of the parts of a PPM spells out the technical aspects of the enterprise with a focus on inherent risk of investing but this can be done in a balanced way to also demonstrate the positive aspects of your venture by giving solid descriptions of your management team and, in place, distribution centers and contracts in place ready for capitalization.

When authoring the offering circular demonstrate the risks with a well balanced demonstration of the system in place to overcome these risks and dominate your market niche. - 32383

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Take Your Company Public for only $5,000 Down!

By James Scott

Is your company finding it difficult to raise the capital you need for your start-up or corporate expansion? Have you considered taking your company public but thought you couldn't afford the fees or you didn't think you would qualify for a public offering?

Princeton Corporate Solutions has an incredible turn-key process for any business of any age and just about any industry to take your company public fast for only $5,000 Down, our massive investor database will be sent a proposal on behalf of your business and if they like the idea, they will flip the bill to take your company public on the OTCBB.

We even have dozens of market makers and broker dealer relationships in place so when you are public, you will have a solid company selling your stock to the global masses! We take your business plan and write a Private Placement Memorandum and then send out an 'investor alert' to our database of over 2.2 million qualified and extremely active investors, when you have raised your first round with your PPM, we move to phase two, the public offering.

We make going public, fast, effective and extremely affordable. If you need capital for your business, you absolutely must call Princeton Corporate Solutions to get more information about taking your company public.

No other consulting service can do what we do for such a minimal price with such lightning fast turnaround! Stop wasting your valuable time with banks that will only turn your company down for a loan or line of credit. Stop wasting time with shelf corporations and platforms that will never succeed in making you a dime. Taking your company public is the perfect way to raise capital to take care of your short and long term financial needs. Call Princeton Corporate Solutions today! call: 267-233-0183 - 32383

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Business Credit Building Tips

By Brian Welks

In today's competitive and often unstable business world, becoming a successful entrepreneur depends a lot on your credit rating. If you're out to make it in the business world, make all attempts possible at keeping a decent line of credit. Things can be a bit rough, but maintaining a decent credit rating can truly mean everything in the long run.

Borrowing money in the form of a loan is the easiet method of establishing credit. Be sure that you have a viable business plan and provide some interesting revenue projections, upon approaching any lender for money. You might want to see financial help elsewhere if this is your first business attempt, such as family or private firms. Lenders, however, don't readily disprove loans if you can make your monthly payments.

If you expect to make a financial impact to the investors you seek as your business grows, buying the needed services for your business can either be a good or a bad thing. The reason for this is that the companies you do business with can either be your friend or your enemy, because they can report information to credit agencies. It's best to maintain a good business to help your credit rate increase, thus placing you on the road to credit stability.

And now we come to assessments. Most lenders often require an assessment before you can even begin to think about gaining good credit stability. You will definitely want to assess your business' credit, and you may also want to assess all the services you rendered for your business. Maintaining a good business depends on how lenders will handle the information you provide.

It is advisable that you look into and research other businesses. You can then get a grip on what vendors you might want to deal with, and you will also learn about who could be future investors for your business. Researching businesses who can provide for your company a good credit rating is also beneficial, because personal credit checks or guarantees are often messy.

It should be noted that it is not necessarily a difficult measure to establish a good credit rating, though maintaining your credit can have a positive or negative impact on your business. In order to get yourself on the road to good credit, don't be weary of doing some research. And don't be weary of asking for help from others who have been in business. - 32383

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Go Public With Your Company

By James Scott

Take Your Company Public for Less Than $5,000
OK, you're ready to take your company to the next level and your CFO and legal counsel have advised you to go public to raise capital as well as to retain some of those prize employees with stock options and to bait that new sales executive with a signing bonus made up of stock options. You've looked into everything from pink sheets to reverse mergers to OTCBB to IPO and you have come to the conclusion you're going to need to take on investors so that you can afford to follow through with your plan. If you're lacking the funds to dive right in and start creating your public structure, here is a way that just about any business can afford to go public.

First, get a real business plan. Your business plan needs to sizzle and reel in the investor and clearly paint a picture of your vision to the investor and their advisors. Next, you'll want to raise an initial round of cash quickly so that you can afford to take your company public without hindering your current company structure with additional ancillary costs. You're going to need something fast and affective; you should consider having a professionally authored private placement memorandum put together for your company.

If you are trying to go public via OTCBB a Regulation D Rule 504 exemption will suffice, if you are trying to achieve an IPO you'll need to go with a Regulation D Rule 505 exemption (pink sheets and reverse mergers into shell corps are not very successful in immediate and long term success so I would suggest you stay away from these structures). Build into the PPM verbiage that you are raising an initial round of capital that will be used to take your company public. When savvy investors see that they are investing in a real, viable pre-IPO or pre-OTCBB formation you will see investors climbing out of the woodwork to give you cash if your business concept is sound.

Next you hire the consultants (usually the same firm that wrote your PPM) to start the process of taking you public. On the PPM your Mini/Maxi should allow you to use capital almost immediately to get the ball rolling on your public company. You can count on a solid OTCBB going for between $75k and $250k and an IPO going for $1M+ so have your PPM written accordingly. If you follow the path set forth above you will notice something extraordinary.

The only out of pocket expense you had was for your Private Placement Memorandum (and your business plan if you didn't have one) and 100% of the capital needed to go public was supplied by greedy investors who are excited to invest because of the quick payoff of their investment when you go public. This process means you can literally take your company public for less than $5,000 (the typical cost of a strategic Private Placement Memorandum. This is a simple, strategic and inexpensive way to get the capital you need for your company quickly, without using your limited financial resources in the process. - 32383

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Raise Money With A Quiz Night

By Mike Tants

Organising a quiz night as a fundraising event is an excellent idea - they are cheap to organise, especially if the prizes are donated and they are very entertaining.

Getting the questions right:

Try not to exclude anyone when writing your quiz questions - make sure all eras are covered as you may have people of different ages entering. Ensure you cover a wide range of subjects, including general knowledge, music, cinema, science, nature, etc.

Make sure there are not too many really hard questions - if the teams don't know the answer they should at least have the opportunity to guess. This won't make people feel like they are stupid - if the questions make them feel like this they won't have fun!

I aim for 20 percent of the questions to be easy, 60 percent of the questions to be medium difficulty and 20 percent of the questions to be hard. This enables most people to answer the majority of the questions, but also includes enough tough ones to separate the winners out.

If you decide to write your own quiz there are plenty of free resources online to enable this. Be prepared to put in the time though to ensure you have a good range of questions and to ensure the answers are accurate. It may be worth buying a quiz pack from a reputable supplier as they only cost a couple of pounds and can save you hours.

Organisation:

Plan in advance!! Make sure the accommodation is adequate, with enough tables and seating for all. On the night ensure there are enough pens and that you have printed enough answer sheets for participants. If necessary, ensure the PA system works and make sure you have spare pens and answer sheets.

How much can a quiz raise?

When planning a fundraising quiz night think about the number of people who are going to enter and think about the price for entering. A recent fundraising event I went to had around 50 people paying 3.50 to enter. The prizes were all donated and there was also food and drink to buy. 50 * 3.50 = 175, plus the food which was probably around 2 per person, which is another 100, so almost 300 for a quiz night, minus the cost of hiring the hall, which can be as little as 20. So between 250-300 for a quiz night for around 50 people. Double that for 100 people, etc. Not a bad fundraiser for the amount of effort required. - 32383

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College Athletics and Viral Promotion that Will Get The Offers Coming in Fast

By James Scott

The important element to increasing awareness for your athlete client is to take full advantage of huge, targeted internet traffic available to benefit the athlete. The solution to the big challenge of targeting exposure is to corner the websites that are common information sites for the major decision makers that hold the key to that next step in the evolution of your client. Make your client's expertise relevant to the needs of the decision maker.

Show empirically how the client's ability can correct the ailments of the coaches or personnel directors who are in a position of need. Corner, the decision makers and hook them with catchy titles that will embed themselves in their memory.

It's important to add that you must translate the role of your client for a singular position while leaving the ultimate decision of their athletic qualities to the imagination of the coach or individual assigned to recruitment. This same process can be used for a high school athlete with ambitions to gain entry into a top tier university program or a university student on the verge of graduating with an eye toward a career as a professional competitor.

85% of recruitment of an athlete pivots around the exposure achieved through media hype. Hype is a process that can easily be created with the proper internet strategy which normally has a combination of press releases, article distribution, photo distribution and video clip promotion on video hosting sites.

These particular media outlets will rapidly gain massive exposure that has a localized identity that will command nationwide attention. When publicizing the achievements of an athlete who has intention of pursuing big dreams it's the publicist's job to pave the way through various combination's of exposure strategies, the rest of the burden falls on the shoulders of the athlete to perform to maintain the interest that you've help generate. - 32383

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So You Want To Take Your Company Public?

By James Scott

Raising capital has become quite a chore in this depressing economic state so entrepreneurs are thinking outside the box when it comes to obtaining funds for their start-up corporations or businesses in expansion. Institutional lenders are a thing of the past, liberal hedge fund lenders are a mere cast skin of what they once were and with the massive infiltration of scams like shelf corporations and public shells leave the minds of individuals trying to raise funds in perpetual skeptic mode. Though the banks have brought small and medium size business lending to a screeching halt, there are still various turnkey methods that one can facilitate in order to raise the optimal amount of funds needed to pursue their venture.

Have you ever considered taking your company public? Don't be scared off by the nightmare stories of needing millions in financial backing or the critical and ultra costly SOX 404 audits that can make or break your efforts. There are several ways to raise public capital in a cost effective and rapid turnaround process. If you are considering a public offering in the United States, your options are OTCBB, Pink Sheets, Reverse Merger (not recommended), IPO and Private Placement Memorandum. Obviously the IPO is the most sought after method of raising public funds but it is the most expensive and longest route to funding. OTCBB and Pink Sheets are a great way to raise capital without the expense of an IPO but be prepared to battle investor skepticism and 'pump 'em and dump 'em' securities scrappers who can have you on cloud nine and swimming in a surplus of cash one day and broke as a joke the next.

The next method that one will run into on their trek to raise capital is the mysterious reverse merger into a public shell. You'll hear many entrepreneurs talk about this method but few actually understand the intricacies of this process and sadly don't realize it's high failure rate until they are sitting alone at their office at 2 am holding their head in their hands when faced with the reality that 99.9% of reverse mergers into shell companies don't work and they just threw away $300k.

The safest, cheapest and quickest way to raise capital from the public is by way of Regulation D exemption rules 504, 505 and 506. This process is also referred to as a Private Placement Memorandum, Private Placement Memo, Offering Memorandum or PPM. After simply having a professional business plan authored and geared toward raising capital with a PPM, the next step is to see a professional about the Regulation D facilitation. You can pay $20k to an attorney or you can spend around $5k to use a consultant, most companies choose the later. After you've had the PPM docs customized, you're ready to go! Most Private Placement Memorandums only take 2 weeks to put together and file (form d) with the SEC office and then you're off to the races!

PPM's are becoming more and more popular as informed entrepreneurs are seeking capital but want to hold on to a majority share of their company. If you are trying to raise capital for your small or medium size business or wish to increase your company value exponentially in an expedient manner, start looking into having a Private Placement Memorandum authored for your company. It is absolutely the fastest and easiest way to raise capital for your business without all the expense and red tape of other public fund raising processes. - 32383

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Fundraising for Community Groups

By Peter Thomson

Fundraising has always been a major source of income for many organisations like community groups, sporting clubs, and the Parents and Friends (or Parents and Citizens) Associations of schools. With restricted financial help from governments, many of these establishments wouldn't be financially viable without the wonderful and tireless fundraising exploits of their members. For example sporting clubs charge membership fees but with expenses ever growing, it would not be possible for them to exist financially without fundraising.

The types of fundraising opportunities these days are many and varied. There's a plethora of fundraising entities about trying to entice organisations to utilize their services. From selling bottled water, wrist bands, homewares, clothing, jewelry and show bags to horse back riding, shopping tours and engraving bricks and pavers. The selections are truly amazing and seemingly endless.

Schools and sporting clubs have traditionally stuck by the period honoured ways of fundraising by selling donuts, lollies, chocolates and biscuits. Over old few years, although, due to child obesity issues from poor eating characteristics and beneath working out, most of these conventional fundraising products have started to fall out of favour with fundraising entities.

This has allowed the less traditional fundraising ideas to get a foot in the door so to speak of this multi-million dollar industry.

So where do you become when you want to get rolling with fundraising? Say for example your child is in their second year of school, and you have chosen to become more actively engaged in the comings and goings of their school. You attend the first P and C Association meeting of the year, and you end up on the Fundraising Committee for the year. You like to impress your peers; you would like to make a difference and do the job successfully.

There are many factors why the school might have to fundraise. It might need funds for some extra computers in the library, or new playground equipment or perhaps they would like to see a roof over an innovative walkway. What to do, where to get going to raise the required funds? These days most people are turning to the internet.

The internet has in a very short space of time become the most popular and powerful tool for locating info, much more widely used now than the local newspapers or the yellow pages. When searching for ideas or information, most people now don't consider any options other than the internet. There are many search engines for sale to the internet user, such as Yahoo!, Bing, Altavista, Ask and Lycos. But by far the most popular search engine on the internet is Google.

ComScore is a marketing study company that provides marketing information and services to many of the internet's largest businesses. According to estimates released by comScore at the finish of 2008, Google ended the year with 63.5 percent market share of all search queries performed in the U.S that year! That's a large slice of the pie.

Google provide a Keyword Tool, which allows access to information regarding the most popular search phrases used by internet users when searching on Google. The hottest search terms used for Google for fundraising are in point of fact fundraising, fundraiser, school fundraising ideas, fundraiser ideas, ideas for fundraising, fundraisers and fundraising ideas.

The upshot from all of these searches show a wide variety of sites that the user can access, the majority of them being fundraising directories that list many hundreds of fundraising entities offering their services.< - 32383

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Reasons To Take Your Company Public

By James Scott

There are several reasons why a company would decide to go public; here are some of the advantages. Liquidity is a popular reason for going public via OTCBB or IPO, many global lenders and private equity groups will lend against stock collateral. Private companies lose time jumping through hoops with various FICO driven line of credit and lending programs with outrageous interest rates while a public company can strategically offer stock for sale or collateral. Run a solid company with growth and a sea of content stock holders and you've got your own cash register to grow your company.

Another popular reason for going public is to offer stock options to key employees which creates and retains loyalty while reducing cost of compensation. There is no better way to have employees go the extra mile day in and day out than rewarding them with a piece of the company. Stock options are also a way to attract those prized executives that are in demand.

Having a public company allows massive buying power from the perspective of growth through acquisition. Find a company that is the perfect strategic alliance and buy them with company stock. This method of expansion has served the interests of top tier companies since Standard Oil.

What about those companies owned by an individual or a close knit group of entrepreneurs who are getting up there in age and need to start thinking about an exit strategy? Public companies demand higher sale prices and sell faster because of the flexibility of the structure. We could go on and on about the advantages of going public.

Start-up companies wishing to investigate this concept of fundraising you may want to consider the OTCBB, this is a solid and regulated formation to trade your stock publicly with stock holder confidence as opposed to a lesser trusted option called Pink Sheets. For corporations with some age and capital and IPO may be the best way to go, though this process is expensive and can take more than a year, it's worth it for the right - 32383

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