In order to scale your business, expand to new markets, or other take take your business to the “next level”, it inevitably becomes necessary to seek capital investment from outside investors. Here are a few preliminary tips to keep in mind before you do it:
1. Don’t jump the gun. You need more than an idea to successfully raise capital from others. Some level of revenue or proof of concept is typically a prerequisite for most angel investors or venture capital investors.
2. You must be able to explain in clear and convincing language how your business will make money. Follow the “keep it simple” principle.
3. A teaser package (as opposed to a complete business plan) will suffice initially to garner attention at an initial meeting with potential investors.
4. You must remember that the offer and sale of securities is regulated by both federal and state law, so take compliance seriously.
Contact us anytime with questions or to learn about our flat fee packages for business formation or small business securities offerings.