Take Your Company Public OTCBB: The Anatomy of A Professional Business Plan
March 3, 2010 by James Scott
Filed under Marketing
With legions of halfwit, template loving business plan wannabe writers polluting the web it\’s no mystery that companies are having a tough time getting funding. It use to be that when a company was ready to get down to business for serious expansion they would call a consultant that would help them bring all the pieces together in a strategic fashion and then this consultant would take their extended industry knowledge in combination with the unique concepts of the client\’s business and he would author a business plan.
This business plan would include everything that the venture capital firms, angel investors, private investors and institutional lenders would need in order to make a quick, no nonsense decision about whether to fund the company and how much equity they would get in return.
Today with the cancerous cloud of predatory consultants seeking out startup business prey to suck dry that businesses are too broke and exhausted to move forward with a solid consultant after they have been through the costly obstacle course and fun house of mirrors set up by wannabe consultants who reel in their prey with a few big words and industry terms and at the end of the day, they are going to put your business plan together with some cracked template software that spits out overly generalized business plans that receive laughs and snickers before being tossed in the trash by investors and venture capital firms.
If you want a real business plan, call a consultant that is completely submerged in the venture capital industry and has experience with plugging businesses into the capital machine. An consultant will first give you a consultation so he can assist in any corporate structuring or turnaround issues that need attention before the business plan is together. After the company\’s structure is complete with executives, solid management, strategic partners, advisory board and board of directors, there is still one more thing to do before the business plan. You must decide what mechanism you\’re going to use to raise capital. Are you seeking debt or equity investment or both, how much equity you will give away for the amount of cash you\’re seeking. How many shares does your corporation currently have and so on. You\’ll most likely need to put together a private placement or consider taking your company public on the otcbb. After all this is done then it\’s time to write the business plan.
Don\’t shoot yourself in the foot, don\’t write the business plan yourself, when you\’ve found a consultant, here are the topics that should be covered in the business plan (this knowledge will help you audit their work before you even hire them). The table of contents should read, at a minimum, like this: executive summary with objectives, keys to success and strategic advantages; Market, Market: Growth and Development Analysis with Industry Analysis and Location Based Services; Current company position with Company overview and vision, key successes to date, technical achievements and commercial position, include info about your technology platform. Talk about your management team, product and services offering, competition, market entry/ Five Forces Analysis, barriers to market entry, comparable business model, target market needs, target market characteristics, market demand drivers, PEST analysis, SWOT analysis, marketing implementation and strategy overview and tactical components, process development map, financial model and projections.
There you have it, the process to follow before the business plan is written and the concepts to be covered in the business plan so that you get the attention you need from investors and the money you deserve for your business.
For Corporate Consulting or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Need Venture Capital? How To Speed Up The Process, Guaranteed To Work!
March 3, 2010 by James Scott
Filed under Marketing
So you\’ve created a widget that\’s going to change your industry or you have an idea that could make millions, no you need the money. The truth is, creating a ground shattering concept with multiple avenues of capitalization potential is only 1% of the equation.
Before you start trying to raise capital you have to look at your company as a whole. Are your corporate executives in place and who are they? Are they friends and family or are they the who\’s who of your particular industry? Unless your brother is the premier and most sought after CFO in the widget manufacturing industry, he needs to be replaced with a professional CFO; the same goes for other executive positions.
When a VC reads the bio section of your business plan their eyes need to tear up as they see that you\’ve strategically collected the best of the best in the industry for your company\’s launch and you\’ve just succeeded in passing the initial test of the VC. You must have an elite and specialized executive staff with a tried and tested career yielding success in previous business relationships with companies at the same stage as your company.
The next thing you have to look at is your board of directors. Again, each member must have a full bag of tricks and contacts that they intend on using liberally to help you grow you company at a rapid pace. After your business structure is sound and your board of directors is ready to start moving forward with their strategies, you need to use the contacts in the portfolios of your executives and board members to start creating strong and long term minded strategic alliances and partners that will enhance your company. These alliances must be solidified by contracts spelling out what each party will contribute to the relationship.
Leave nothing to chance, unless they are willing to sign a contract with you, it\’s not a relationship that can be taken seriously and will only convert into negative baggage that will haunt you down the road. Now with all this in place, you\’re ready to put together a business plan. Find a consultant who can not only author a premium grade business plan but also offer corporate structuring and turnaround services to look for holes in your business model and correct them. The author of your business plan is playing a vital role in your company\’s ability to raise capital and grow. Choose your BP author wisely.
Now that your company is structured and your business plan is done you\’ll need a way to distribute equity that protects you from lawsuits and gives the investors the comfort of knowing that you are ready for funding if they decide to invest, you need a PPM (private placement memorandum). Your business plan author is the natural \’go to\’ consultant for this as they already have an intricate knowledge of your business and have the writing experience to author such a technical document. After all this is done you are now ready to start talking to venture capital firms. Don\’t leave the success to chance, hire a consultant that matches companies like yours up with the global venture capital market. Go to Google or another search engine and search for \”investor finder\” or \”Venture capital finder service\” these investor finders are a elite group that has substantial contacts in the funding world and can often match you up with investors and equity firms who are seeking investment opportunities like yours.
Raising capital is the last thing you do after you\’ve gone through the process of structuring your company properly, now that you have, get out there and start raking in the cash! Here\’s to your success!
For Corporate Consulting or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Going Public: Raise Money Quicker
March 3, 2010 by James Scott
Filed under Marketing
Structure your company should spearhead your capital raising initiative. Make sure that your corporate layout is conducive to creating and retaining investor and venture capitalist attention. You should have a solid and elite executive team composed of the best of the best that your industry has to offer and if you can\’t attract those in the upper echelon of your business genre, you need to take an active approach to branding them as experts using on and offline PR campaigns labeling yourselves as industry experts who are innovating industry changing solutions. Create a stir, be controversial (but not offensive) and be ready to back up your stir with empirical evidence of your knowledge and success. You should have an advisory board and board of directors composed of industry specialists. Each individual should represent a forte that makes investors start to salivate when they are reading the bio section of your business plan. They should be able to contribute with contract negotiation, strong alliance introduction capabilities and more. When choosing professionals to fill the void of adviser and director positions you should think in terms of corporate \’growth\’ and \’stabilization\’.
Next you want to make sure that your entity is prepared to receive debt and/or equity capital. You\’ll need a solid business plan, don\’t write it yourself, you\’ll only hinder your ability to raise capital. Call a professional to write your strategic business plan. Next you\’ll need a way to distribute equity or debt shares, a Private Placement Memorandum is the most common mechanism for helping companies raise capital quickly and easily while staying within the regulation guidelines of the SEC. Your PPM must be written by a professional to deliver the ultimate protection for your company while simultaneously spelling out the technical intricacies of your business to the investor.
Now that your company is structured properly, you have a business plan and a PPM, you are ready to start raising capital. Your first call should be to a corporate turnaround consultant with an arsenal of global funding contacts composed of all the necessary contacts such as: venture capital firms, private equity firms, angel investors, private investors, accredited investors, structured finance firms and so on. This turnaround consultant, if they are part of an established firm (always use a small boutique firm if you can find one, they are much more affective and one on one than the larger firms and tend to get the job done quicker without the headaches) they will have a service call and \’Investor Finder\’ service. They will reach into their gargantuan bag of contacts and give you so many funding options your head will spin, thus, making your fund raising efforts fast and painless.
Now that you achieved your first round of fund raising it\’s time to get serious. Yes! It\’s time to take your company public. Stay away from Pink Sheets and Reverse Mergers, you\’ll only regret it. If you are a smaller business or a startup, your best bet is the OTCBB. Go back to your turnaround consultant and have them start putting you through the sec audit, sec registration, FINRA registration and Market Maker joint venture and S1 filing. They should be able to handle the entire \’going public\’ process for you and in 4 to 7 months, you\’re public and trading.
Be sure to take advantage of the multitude of strategies to capitalize off of your securities. Remember there are many ways to capitalize off of your shares, selling shares through your market maker, continuously engaging in heavy PR to stabilize and enhance your stock price and another way that many entrepreneurs don\’t consider as an option when raising capital, the almighty hedge lender will can lend your company money against your collateralized securities. Yes! Use your stock as security for financing. After you pay off the loan, line of credit or lease you get those shares back (be sure that your lawyer audits your contract with the lender to keep away from any convertible stock clauses). So now you are raising capital by selling stock as well as the \’on demand\’ loan or loc concept of security backed lending.
Congratulations! You\’ve just completed \’Real\’ corporate finance 101! Now get out there, put your company together and start raising the capital you need.
For Corporate Consulting or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Take Your Company Public OTCBB: S1, 211 Here Is What You Need To Know
February 21, 2010 by James Scott
Filed under Business
So many companies dream of going public both as a growth and exit strategy but unfortunately few succeed with this process. The third party audit, sponsoring of the S1 and 211 by a market maker and SEC comments stage is just one of the obstacles involved with taking a company public. The attempt at going public and actually achieving a symbol are two entirely different things and if you are lucky enough to achieve a symbol there\’s a completely separate area of expertise needed to keep your stock trading and to preserve a company\’s longevity in the marketplace.
Here are some things you need to keep in mind when gearing up to take your company public. Forget everything that you\’ve read and heard and pay attention to what you\’re about to read because this is the straight forward, objective reality of the process. First, do not hire an attorney to take you public as they will take you on a long drawn out process to get as many billable hours as possible, instead, hire a consulting firm whose sole business model is to take companies public and take advantage of the relationships that they have with attorneys. This is the first rule: hire a consulting firm that offers a complete A to Z turn-key solution for taking a company through the process of going public, achieving a symbol and preserving the trade with a solid, ongoing post public investor relations strategy.
Next, when you\’ve decided on a consulting firm evaluate their team, don\’t ask for references to call to research their track record, better yet, ask for symbols of previous clients and links to the Edgar database to check out current deals in the comments stage. The proof is in the empirical track record, not potentially fraudulent phone references that are easily engineered and BS.
Now look at their team. Make sure that the consulting group has a solid legal team, market makers, investor relations team, auditing group and someone well versed in the comments stage response as this can be one of the major hang-ups in achieving your symbol in a timely manner. Also, most important, they absolutely MUST have a solid group of investors to fund the process for equity and to sell their shares into the marketplace post public to create a market for your stock as well as a network of market makers familiar with your deal to piggyback off of the sponsoring market maker\’s 211.
About one month away from symbol achievement you\’ll want to meet with your consultants to get a solid IR strategy together for a big offering dbut. You will want to set up a strategy for 30 day IR intensives every other month with general corporate publicity strategies in between. I suggest changing your IR firm each quarter to keep it fresh and open up your trade to a new network of investors.
One special note to consider is that when you are raising your initial round of capital from seed investors, the fastest way to do this is to have a fist full of contracts and purchase orders in hand to strengthen your position and publicize this reality with an arsenal of press releases. Its 100 times easier to raise capital if you are showing seed investors a handful of \’soon to be\’ cash than to solicit them empty handed.
Obviously there are a multitude of other issues that you need to take into consideration when going public so find a consulting firm that can help you make it happen. Don\’t try to venture out into these waters on your own as you\’ll be diving into shark infested waters and you\’ll almost certainly fail.
For Corporate Consulting or Invest Seed Capital In Pre-IPO Companies, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Direct Public Offering Mistakes: A Must Read!
February 7, 2010 by James Scott
Filed under Blogging
Private Placement Memorandums and Direct Public Offerings, the most common mistakes made.
When gearing up to raise capital it is typically a business owners first instinct to simply throw together a business plan and find the cheapest company to put together the private placement memorandum and then seek funding. What these professionals don\’t realize is that they are doing things in reverse and often times a PPM is not a standalone solution to financial needs.
The first problem is the most companies will first write a business plan and cheap PPM and look for a capital solutions last, when strategically speaking, one should first find a full service solution who has a database of investors ready to fund properly structured corporations with well authored business plans and private placement memos. After you find a company that has a ready network of seasoned investors you will often find that this firm will also structure your business and documents so that you are able to attract the attention of these investors. Next, don\’t make the mistake of hiring just anybody to write your biz plan. You need to find a professional author who is well rooted in the art of technical writing and has a solid comprehension of your industry.
Now it\’s time to write the PPM. Here is a warning that will most likely go in one ear and out the other but you must never choose the cheapest service for your PPM you will regret it and this is a guarantee. Investors see these documents all day everyday and they know a template when they see it. Don\’t believe for a second that you will get a viable private placement memo that will actually achieve funding for anything less than $3,000; it\’s just not going to happen. There is too much work involved in putting a fund-able strategy together and you\’ll never find an experienced firm to do it for cheap.
The moral of the story is to first find an investor finder solution with a solid network of investors, second have this company write your business plan and private placement memorandum to fit the needs of their investor base and lastly, talk to this consultant about helping you perform a DPO (Direct Public Offering) to their group. This is what separates the men from the boys in the venture capital consulting industry.
Legitimate consultants who stand behind their work will take your PPM directly to their investor base and help you raise capital quickly. In return for this service the company may want a modest equity position in addition to their fee but it is always worth it and typically they will take the final step and have their investors pay to take your company public. This is the ultimate for any company that is seeking a long term funding solution.
Remember the order: 1. Find an investor finder 2. Have that company write your biz plan and PPM 3. Convince the firm to perform a DPO for fast funding 4. Offer some equity to sweeten the pot so that they take you public!
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Direct Public Offerings and Private Placement Memorandums the easy way!
Take Your Company Public: How To Find Angel Investors!
January 19, 2010 by James Scott
Filed under Marketing
If you own or run a company that is trying to raise capital in the current economic conditions you’ve undoubtedly been challenged by the limited funds available. Investors are more difficult to find and the individuals that are actually willing to part with their cash are even tougher to find. You’ve talked to friends, family members, your cpa and your attorney but trying to get them to invest is like drawing blood from a stone, it’s just not happening.
There is an easier way. Most broker dealers and market makers have an emergency number in their Rolodex that reads “Investor Finder”, these specialist consultants are brought in when there is nowhere else to turn for cash. A true Investor Finder has 1,000′s of investor contacts that they can call on to get funding for their clients and are constantly using online viral strategies to attract more investors to their database.
An investor finder usually is not a licensed securities broker/agent or attorney; instead they are traditionally consultants that are active in the investment banking facilitation aspect of the industry. Being that they are not licensed they do not accept equity payments or percentages; instead they work on a flat fee basis.
A good consultant in this genre can bring in 30 to 70 real investors per day and it’s up to the client to sell the opportunity from there. A typical lead from an investor finder will be an investor or investment firm that is responding to the consultant’s opportunity introduction email or snail mail mailing, they have read about the opportunity and they respond one of two ways, either they are calling into a phone room to be screened and qualified or they are contacting the client directly.
Many times the investor doesn’t know that they are part of the “finder’s” database but do recall signing up to receive investment opportunity updates, so either way the investor is solid and active. If you are trying to raise capital and need real results quickly and can’t afford to waste time begging for cash, you need to seek out a qualified Investor Finder consultant and make your fundraising efforts fast and easy.
Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
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Take Your Business Public: Find A Consultant That Will Streamline The Process
January 18, 2010 by James Scott
Filed under Business
Going public, the ultimate in the evolution of companies who are seeking access to powerful global finance options for rapid expansion, deepening corporate roots and gaining industry prominence as a true powerhouse and player. The process of going public is technical yet pretty straight forward: business plan, Private Placement Memorandum, Direct Public Offering, Financial Audit, S-1 filing, SEC comments phase, SEC approval, FINRA approval, symbol and then you\’re public.
Never price shop for consultants that take companies public and be weary of consultants that will start off a conversation by answering questions geared toward price and giving you quotes without understanding your business first; without the proper information a realistic quote can\’t be given anyway.
When you\’ve found a consultant that you\’re comfortable with you\’ll need to get a solid understanding of their full range of services. Of course you\’ll want a consulting firm that will handle all of the above for your company but you\’ll also need to consider the post IPO services. What happens after you\’re public? The reality is, selling off stock in a rapid fashion to raise capital is the last thing you want to do, instead you need to approach your consultant and market maker on how to cross collateralize your securities to raise equity loan capital.
This can be done easily and quickly if you\’ve brought on the right group of advisers to expand your company to the global public. When considering the idea of taking your company public it\’s important to note that there are many ways to raise capital after you are public without selling off chunks of your company (consult your financial advisers for more information).
Next, when deciding on a consultant they should also have solid investor relationships to assist your company in raising the capital necessary to go public. A true turn-key consultant will have a database of investors seasoned in the process of pre-IPO finance and will often times jump at the chance of investing in the PPM and DPO phase at a discount for companies that are in the process of going public as this almost guarantees that the investor will double or triple their initial investment when the company achieves public status.
Out of the hundreds of consulting firms that offer the \’take your company public\’ service, there are only a dozen or so that actually offer the complete full range of services needed to successfully accomplish public status in a way that maintains investor confidence and corporate longevity. Do your research and find a firm that is well seasoned in the turbulent waters of this industry.
Foreign, Indian and Chinese Companies, Take Your Company Public, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
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Anatomy of an S-1: A Must Read If You\’re Going Public
January 10, 2010 by James Scott
Filed under Internet Business
Your company is growing. Now you are ready to start raising serious capital and you here the public fund raising markets. Here are the basics of your S-1 filing. Know the lingo before you hire a consultant. Because companies must adhere strictly to SEC regulations, initial prospectuses are similar in their organization. Each S-1 generally consists of the following sections:
Front Section — An S-1 contains a small amount of information not available in a prospectus. In this first section, you can quickly find the issuing company\’s phone number and get a vague sense of the future offering price.
Cover/Inside Cover — The prospectus cover outlines the general terms of the offering, including names of the underwriters, number of shares offered, and pricing information. The actual share price is absent from a prospectus until the day of the offering.
Prospectus Summary — Here you will find a brief synopsis of the company\’s business and history, a modest discussion of the change in capitalization to occur as a result of the offering, and a useful summary of financial information covering the last five years, if available. If you are screening prospectuses for investment ideas, start here.
Risk Factors — After you have read a few prospectuses, you will become familiar with the \”usual suspects\” in this section, including \”Possible Volatility of Stock,\” \”Limited History of operations,\” \”Dilution,\” and \”Dependence on Key Personnel.\” Nevertheless, this section is a worthwhile read to be sure that you understand the challenges facing the company\’s management. The discussion of competition can be sobering, but it can also provide a means to compare the value of the issuer against the financial performance and market valuation of its competitors.
Taking your company public should be an exciting and revitalizing time. Don\’t take unnecessary risks, hire a consulting firm who can streamline this process and deliver the results you\’ll need for success!
Need S-1 Filing Info? Take Your Company Public, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
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A Corporate Consultant\’s Power Is In His Contact s: Transform Your Company Fast!
January 7, 2010 by James Scott
Filed under Web Design
A Corporate Consultants Value Is In His Contact Base: Transform Your Company Overnight! If you\’re seeking the services of a consultant you\’re most likely in need of corporate structuring or a strategic company turnaround for a capital raise or to go public. Hiring the right consultant is crucial if you are going to succeed with your venture.
Your consultant should, obviously, have the knowhow and track record for succeeding in fine tuning companies to cater to what industry investors are seeking but they must also possess the contact base to streamline the process so that you don\’t lose time to gain that stealthy edge over your competitors who are attempting to do the same thing.
Your consultant should maintain an active database that acts as his \’special forces\’ munitions arsenal of 10,000\’s of real, viable contacts in scores of industries so that he can assist you in even the most mundane, minute aspects of your strategy with solid corporate alliances and contacts that will make your venture stand out like a beacon of light in your industry that beams its florescent light in the windows of potential clients, partners, contractors and anyone else that can assist your company in achieving its desired ambitions. Your consultant will structure and categorize parts of your company that you didn\’t even know existed yet are crucial to its development.
The reality is that you should have a separate group of strategic partners for every individual product and ever individual service that your company offers. For example, when I consult with companies that have, say, 10 products, my goal would be five to seven strategic partners per product for a range of fifty to seventy strategic partners that my client will work with for co-op advertising and marketing efforts, branding strategies and sales initiatives. Most companies don\’t even consider this aspect to their business but it is absolutely vital.
When you find a consultant or corporate strategist that you are ready to hire, after you have thoroughly evaluated them, have an in-depth conversation about their ideas for strategic partners and how they intend on facilitating this process to help you achieve your goals.
For Corporate Consulting or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way! We have 10,000\’s of contacts!
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Take Your Company Public The Easy Way
December 22, 2009 by James Scott
Filed under Marketing
When raising funding, most likely investors will want their equity distribution in an SEC recognized format like a Private Placement Memorandum, also known as a PPM. This structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of\’33.
The 3 powerful exemptions are Reg D (Regulation D) exemption Rule 504, Rule 505 and Rule 506. These rules carry different criteria that help businesses raise equity funding without all the stringent legalities of a public offering. These rules are defined like this: Rule 506 provides an exemption for limited offers and sales without regard to the dollar amount of the offering.
This exemption doesn\’t limit the number of accredited investors, but the number of non-accredited investors may not exceed 35 investors. (An accredited investor is any one investor with a certain net worth and or experience in the purchase of stocks.) All non-accredited purchasers, either alone or together with a designated representative must be sophisticated enough (meaning, have the knowledge and experience necessary) to evaluate the merits and risks of the investment. (An offering company will usually determines the sophistication of its investors with a questionnaire subscription agreement.)
Rule 506 requires very detailed disclosure of all relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering. Rule 505 offerings may not exceed $5 million, less the total dollar amount of securities sold during the preceding 12 month period under Rule 504, Rule 505 or Section 3 of the act. This exemption limits the number of non-accredited investors to 35 but has no investor sophistication standards. Rule 505 requires disclosure similar to that required for Rule 506 offerings, under $7.5 million.
Regulation D Rule 504 offerings allow a company to raise a maximum of $1 million in funding, less the total dollar amount of securities sold during the preceding 12 month period, under Rule 504, Rule 505 or Section 3 of the act. However, a business can raise only $500,000 by the sale of securities to persons residing in the states of Montana and Alaska, which have no disclosure laws applicable to the offering. For states that do have disclosure laws, which are 48 out of the 50 states, a business can raise up to $1,000,000. Rule 504 has no prescribed disclosure requirements, no limit on the number of purchasers, and no investor sophistication standards. So if you\’re trying to raise capital using a Private Placement Memorandum, use the above criteria as a cliff-note and as long as you stay within SEC guidelines, fund raising for your company will be simple.
Call 267-233-0183, Private Placement Memorandum Services, visit Princeton Corporate Solutions to get more info about Private Placement Memorandums and passing Due Diligence
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