By marketing a business plan, you do not have access to sophisticated
funding resources. Stockbrokers and brokerages will not work with you
because you have not structured an SEC offering. The resources a company
is then forced to utilize are infamous for being highly ineffective.
These include "finance brokers", "finance finders", "finance
consultants", etc. and most are looking for one thing in common – a
large front fee of some sort.
Most call it an "underwriting fee" or a "retainer" – it is guaranteed
wasted money, and worse, wasted time for the subject company. It is not
unusual for companies to look towards other "alternative" funding
methods like collateralizing the transaction with an "insurance bond" or
"financial guarantee".
These methods do not work and typically have one thing in common – a
front fee of some sort before you can have access to this collateral
instrument – which doesn't usually exist in the first place.
Even well established, sophisticated companies make the mistake of using
a
business plan to solicit funding.
Regulation D Offerings have been shown to be the most effective method a
private company can utilize to raise investor capital. The resources
that are then available to the company are all highly regulated by the
SEC and are easily identified. Best of all – they are effective. A
Regulation D Offering also provides the framework for allowing
individual investors to invest in the company easily and efficiently. A
Regulation D Offering is a critical addition to a corporate business
plan.
