Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map SMARTpages.com Find a Business, Person, or
    Directions at SMARTpages
Online directory to business resources Biz Web Guide
 





Idea Cafe's CyberSchmooz
Financial Feasts

Financing message forum where you can get and give insights found nowhere else. Belly up to the table and request funding. Or tell your money tales. Any money talk is fair game except ads.

The Latest Hot Topics:

Show Me the Money!
Belly up to the Financial Feasts table and talk turkey about money... what to look for, where & how? All money talk is fair game. Go

 

Private Placements

1. What is a Private Placement?

2. Who is This Good For?

3. When is This the Best Choice for Me?

4. When is This Not Advised?

5. Tips for Getting The Money.

6. Ingredients You'll Need on Hand.

7. Watch Out For...

8. Web Links.

1. What is a Private Placement?

You sell shares in your corporation -- not on the open, public market, but to select individuals. You'll be deciding how much of the company to sell, at what price, to how many private investors, and even which investors. That's a lot of control, but also a lot of footwork.

2. Who is This Good For?

Companies that need an infusion of capital to jump to the next level of growth, but that already have a proven track record. Your company is successful enough to be a solid investment for outside investors, but you don't have the time, patience or inclination to take it public right now.

3. When is This the Best Choice for Me

When you're looking for a substantial infusion of capital but aren't a good candidate for a venture capital firm or don't want to do a public offering.

4. When is This Not Advised?

When neither you nor anyone else in the company is comfortable or effective in the sales role.

When your business' growth will be too flat to distribute profits to a lot of investors fairly soon (before they become impatient and start phoning all the time)

When you can't spare yourself (or anyone else) from operations to chat with the number of potential investors you'll have to woo.

5. Tips for Getting The Money

Network! Turn your nose up at no one, for her contacts and money may prove invaluable in the future. This is where contacts within your own industry or neighborhood may pay off big -- trawl the trade associations, local business groups, and clubs.

Get a lawyer seasoned in private placements. Private placements are overseen only loosely by the Securities and Exchange Commission, but state securities and exchange officials will want to review your documents just to see what you're doing. To satisfy them, have your attorney prepare the paperwork. Tread lightly as you promote the private offering so as not to attract the attention of the regulators early on for innocent hyperbole.

6. Ingredients You'll Need on Hand

  • A Business Plan
  • A good attorney, familiar with Private Placements
  • Basic Financial Package
  • Legal Documents to meet SEC and state regulations

7. Watch Out For...

Regulations that require you to qualify your investors by income. Investors in private placements must have substantial personal wealth and annual income. Recognizing that private placements often represent risky investments, the government wants to make certain investors can afford to lose the money if the company doesn't make it.

Lawsuits. It's all too easy for investors to hear your plans as promises. If they buy shares expecting a windfall, they may be disappointed -- and sue.

8. Web Links

Venture Associates Ltd.
Denver financial consulting firm run by James Arkebauer. Information on private placements as well as finding angels, venture capital, investment bankers, management consultants and more.

 

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2014, DevStart, Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from DevStart, Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. DevStart Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from DevStart, Inc. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.