Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header about About Home Profiles articles Tools forums inspirational quotes About facebook Twitter YouTube Blog
Share for a Cause











Who Should You Use to Raise Your Capital?

Guest post by: Ken Hollowell

Article Overview: Caution! It may be illegal to compensate a non-licensed broker/dealer.

Free Download - What are Angel Investors? By Ken Hollowell
Name: Email:

Who Should You Use to Raise Your Capital?

The concern as to who will purchase your stock is always on the mind of every individual entering into a stock selling procedure. This is one of the most common and important questions asked by nearly every business owner seeking funding for their business or concept. The concern who and how private investors are going to be reached is ever present when someone launches a private placement offering. Few individuals ever enter into a private placement offering with confidence concerning the marketing of the offering. Convincing yourself that have made the right decision to have a private placement memorandum prepared and to begin promoting the offering is usually questionable. There are many broker/dealers that have networks and private investors, investment clubs, individual angels and venture capitalists that look at both start ups and existing businesses for all levels of funding. But can you afford their services when they may want 20% to 40% commissions for raising the funds? Some may even want upfront fees to begin promoting your offering and there are no guarantees either. So who do I use?

The best person to promote and sell the offering is YOU! No one knows your business better than YOU. No one can explain and answer questions like YOU. No one can reach a comfort zone with an investor like YOU.

The key element is PASSION in and for your project. Any private investor that experiences the rare passion of your heart's desire to accomplish the goals and objectives of your business will surely weigh the emotional commitment to the success of the venture. No broker/dealer could ever express that type of passion as well as YOU.

It is important that you approach the promotions of your offering as a full time endeavor. It's now the most important job YOU have in front of you every day. It is your role, duty, job, and intentions to find private investors who are willing and able to purchase your private stock and convince them to back you in your company or project.

With Profran Consultants we prepare YOU to confidentially with credibility and believability relate and achieve the expression of that passion to each private investor. It is our opinion that 50% of the work is to convince the investor that YOU believe in your project and are prepared to go all the way to accomplish the success of the venture. This requires YOU to make contact with and develop a dialogue with each private investor to be certain that the investor as a potential investor in your project feels you commitment.

Related Articles
  SMEs - entrepreneurs sourcing start up finance
  Who Should Use a Regulation D Private Placement
  Venture Capital and Angel investors - Challenging to raise money outside of Canada
  Tired of hearing ‘NO’ when seeking funding for your start-up?
  How To Raise Capital To Help Grow Your Business
  The Benefits of a Structured Private Placement Offering
  Tips To Raise Capital For Your Small Business
  The Fundamentals of Raising Capital from Investors
  How To Raise Capital From Investors
  For Entrepreneurs And Small Business Owners: How To Avoid Six Big Business Expansion Mistakes
  Does a Canadian Business Owner choose debt or equity for growth ?
  The Most Important Rule of Business
  Alternative Funding Options to the Rescue
  The Six things you must have to buy a Franchise
  Venture Capital - Getting Ready
  You get to choose
  Financing your new business: Orders vs. Cash
  Entrepreneurial Challenges
  Preface: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
  Is Capitalism, as Seen by Enterpreneuers now, Good or Bad?

Home > Franchises > Ken Hollowell > Who Should You Use to Raise Your Capital >
Article Tags: capital, funding, ppm, private placement offering, raising capital, raising funds

About the Author: Ken Hollowell
RSS for Ken's articles - Visit Ken's website

– Ken M. Hollowell, founder of both Prfran Consultants, Inc. and Profran Capital Group, Inc. and is a leader in the field of franchise development and non traditional methods of raising capital since 1980. Mr. Hollowell has lectured before many business organizations, Universities and Colleges on the subject of franchising and hosted a radio talk show of radio for years.

He conducts numerous seminars annually on franchise development and investing in a franchise business throughout the United States. He is regularly requested by the Small Business Administration in Washington, D.C., S.C.O.R.E., Learning Annex and the International Franchise Association to speak on franchising. Mr. Hollowell's well-rounded experience and practical knowledge in both development and marketing have led him to be one of the most sought after franchise consultants in America. Mr. Hollowell has written many articles on both developing a franchise network and buying a franchise. Mr. Hollowell sits on no less than a dozen boards of directors. Mr. Hollowell works with as many as 120 new clients each year on teaching techniques and methods of raising capital through the SEC's Reg D Series of Offerings


Click here to visit Ken's website
Dashed Line

More from Ken Hollowell
Who Should You Use to Raise Your Capital
Regulation D Programs
Who Should Use a Regulation D Private Placement
ARE FRANCHISES CHANGING WITH THE TIMES
Do You Need Capital For Your Business


Related Forum Posts
How to valuate a business How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Del Castienne - International Business and Project Brokers Del Castienne - International Business and Project Brokers - In addition to the above, Del Castienne is an international brokerage firm specializing in various entrepreneural services. Del Castienne is more than just a brokerage, as we facilitate Private International Venture Capital for Business and Projects from Commodity Speculation Transactions, MBO, MBI, M&A, Bridging Finance, Patents, Branding, JV, Corporate Advisory Services, Business Plan Development, etc.. Del Castienne is linked to 1200 private international Venture Capital consortiums and Funding Syndicates with a funding capacity of $ 115 billion and 5000 international Investment Bankers and Business & Project Brokers. This in itself should provide you with a gateway to the best source of funding in the world. Through Del Castienne any entrepreneur can have up to a potential success rate of 25% (conditions apply) with absolutely no up front costs. Del Castienne charges a maximum of 5% commission which is far below the international standard of 10% - 12% on project value. If you are tired of running back and forth with countless dissappointments, please give us an opportunity to assist you. Our minimum Venture Capital amount is $1 million and we a Commitment Letter can be provided with in 30 days after formalities are in place and your information was received.
Re: Kevin's Case Study #8 - How do you attract a finance expert? Re: Kevin's Case Study #8 - How do you attract a finance expert? - These are all really great ideas. The other thought is to go back to your own friends, clients, suppliers and find out who they use. I got introduced to an amazing person, Devon Cranson at Cranson Capital, by asking around. Nothing beats a recommendation from a trusted source Jude
New Small Business Topic New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
HRPreneur HRPreneur - Hi everyone, I am new to the forum and I recently started my own Human Capital (HR) consulting firm called HRPreneur Inc. HRP focuses on making human capital a strategic differentiator for SME's. Below is a summary about HRP; Who We Are: HRP is a Human Capital consulting firm with 30 years of experience that becomes an extension of your company by providing a full array of services to help you create a highly engaged workforce focused on achieving strategic results in order to build a long lasting great company! Mission: HRP provides small and medium sized businesses a Strategic HR Business Partner to increase employee engagement, resulting in cost savings, increased productivity and results at an affordable rate! Vision: To inspire and warrant SME's reach their full competency! Cost Effectiveness: We provide over 30 years of experience at a fraction of the cost at a strategic executive HR business level You will save between 50% to 60% in costs per year on salary, bonus, benefits, training, office space alone We will provide you additional cost efficiencies through our services Services: • Strategic Human Resources Planning • Organizational Redesign • Change Management • Organizational Culture Development • Employee Engagement Programs • Leadership Assessment and Development • Compensation Design • Talent Acquisition • Assimilation and On-Boarding • Performance Management • Talent Management & Succession Planning • Human Resources Due Diligence • Human Resources Audit • Full Service HR Outsourcing


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article

Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Four Secrets to Earning Income as an Author

Why SEO is important for your online success

3 Health Insurance Misconceptions

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.