Start With a Prospectus to Raise Money to Start a Business
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We think you will find this article interesting! After all, you are more than just slightly interested in this topic or you wouldn't be reading this article on raising money for a small business. The task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there's more money available for new business ventures than there are good business ideas. A very important rule of the game to learn: Any time you want to raise money, your first move should be to put together a proper prospectus. Now that is interesting information we all can benefit from.

This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It's also a good idea to list the various loans you've had in the past, what they were for, and your history in paying them off.

You'll have to explain in detail how the money you want is going to be used. If it's for an existing business, you'll need a profit and loss record for at least the preceding six months, and a plan showing how this additional money will produce greater profits. If it's a new business, you'll have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over at least a three year period.

Surely, this last point is something that adds value to this discussion but, possibly not - it's your decision. It'll be advantageous to you to base your cost estimates high, and your income projections on minimal returns. This will enable you to "ride through" those extreme "ups and downs" inherent in any beginning business. You should also describe what makes your business unique --how it differs from your competition and the opportunities for expansion or secondary products. Perhaps all this information will guide our knowledge in this area to new heights. What do you think?

In conclusion we hope you learned something new today. Perhaps with this information you will appreciate this information on raising money for a small business and decide if you want to discover more information on your own. This prospectus will have to state precisely what you're offering the investor in return for the use of his money. He'll want to know the percentage of interest you're willing to pay, and whether monthly, quarterly or on an annual basis. Are you offering a certain percentage of the profits? A percentage of the business? A seat on your board of directories?


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