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Legally Raise Funds

Date Published: 10th September 2009
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It's the Legal Way to Raise Money

Non Traditional Method of Funding

With the current state of our economy, business owners are unable to keep our maintain their current lines of credit or establish satisfactory banking relations that enables borrowing power therefore other alternative methods of funding have become necessary.

Why You Might Need a Private Placement Offering

The SEC prohibits a privately held company whether the business structure is a corporation or an LLC from offering its stock or membership units for sale unless you qualify for an exemption.

You must have the proper documentation and exemption to sell equity in your business in compliance with the SEC. Using a business plan to raise money is a very weak method to use because it is in most cases an unstructured document and is never intended to be used to raise money not to mention a potential violation of the SEC. A business plan is a guide for internal use, not an instrument to raise money with.


Are There Investors for My Project?

Yes, if the memorandum is written properly with a fair return of investment for the private investor the offering may appeal to a number of private investors.

What's My Next Step?

The commitment to yourself to provide investment opportunities to private investors must be taken seriously. You have a responsibility to be fair and honorable with your investors. If you've never done this before, It would be wise to use an experienced consultant and coach as you enter the arena of funding. Profran Consultants prepares many private placement offering each month from the creation of the business structure, preparation of the memorandum, development of the marketing tools and promotional items to providing the direction and consultation necessary to successfully present your offering to potential investors. The last thing Profran Consultants does is to provide potential investors for you to make contact with.


Over the years, Profran Consultants has assisted thousands of companies with their funding requirements. Once you learn this process of funding, you will discover an opportunity to fund any project you might have.

(407) 363-3545 Call Ken Hollowell

Ken Hollowell has been working with individuals for over 27 years with their funding requirements. His approach to the teaching and training of how to raise funds through a private placement memorandum is very simple and easy to learn. Ken works for six months as your consultant explaining things every step of the way. You are not left alone, but instead coached and taught as you go.

The good news is that it is worth it.

If you are looking to raise $1 million or under, you can use the Reg D 504 private placement memorandum, but if it's over $1 million, you will most likely use the Reg D506

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Tags: business owners, consultation, business structure, business plan, marketing tools, coach, stock, promotional items, private investors, borrowing power, current state, compliance, investment opportunities, alternative methods, proper documentation, memorandum, private investor, return of investment
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Source: http://www.articlealley.com/article_1077359_11.html
About the Author
Ken Hollowell, President/CEO of Profran Consultants has been working with individuals for over 27 years that want to raise funds for the startup or existing businesses. Ken calls the private placement offering the best kept secrret in business funding.
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