Preparing Investor Documents

Business Plan / Private Placement Memorandum (PPM)

Subscription Agreement / LLC Operating Agreement

You cannot take any money from an investor without first providing them with the proper disclosure documents. Presenting the investors with these documents is both a Federal and State requirement. Whether it is a Private Equity Placement or a Public Offering you are offering securities to the public. Complying with the law is mandatory.

Business Plan

A business plan does not meet the requirements of a Securities Offering document. In fact, you should have a legend across the first page of your business plan notifying the recipient of the document that it is NOT meant to be an Offering of Securities. We provide a free detailed business plan outline for you to begin formulating what type of information and answers you need to begin compiling to write your business plan. Business Plan Outline ….more…

We also provide you a sample of an actual business plan to learn what level of sophistication you must attain if you are to be successful in soliciting investor money. ….Business Plan Sample…more.

In most cases, the reader of your business plan will not have met you. Their first impression of you will be directly tied to the quality of your business plan and investor documents. You may have a great idea but if your presentation is less than great the default answer is usually NO.

If you are of modest means, the free information contained here can be helpful to you. However, if you can afford to have your plan professionally written it is money wisely spent. You only make a first impression once. See here.... for Business Plan Preparation Services. We always maintain complete confidentiality of any information you provide us.. If you look at our sample business plan you will see the quality of our work. Since your success likely rests on the quality of business plan it is a very key decision.

Private Placement Memorandum & Subscription Agreement

The completed business plan is incorporated into the body of the (PPM) Private Placement Memorandum. I always recommend that you have the (PPM) Private Placement Memorandum and Subscription Agreement prepared when the business plan is completed. You cannot take any investor funds without given the investor these two documents. If after reading the business plan an investor informs you they want to invest, you risk a change of mind in the time period between their yes and you have the PPM in their hands. It makes more sense to give them the PPM and if they wish to invest they have the documents and can return the subscription agreement with their check. In addition, the PPM is a legal document and has the command of truth to it. Often times, there is information in the business plan that should not be included in the PPM.

LLC Operating Agreement

If your corporate structure is an (LLC) Limited Liability Company you will also need to present each investor with an LLC Operating Agreement for their signature.

“Before you can accept any money from any investor, (except immediate family members) you must prepare and provide them with the proper Investor Documents”.

Preparing your Investor Documents

Are you deciding whether to proceed or even how to proceed raising capital for your business or a new start up; you will find that there is a great deal of free information on this website. If you have decided to take your project to the next level you may want to consider reviewing our audio seminars. Click Here ...Audio Seminars... These seminars not only provide a much higher level of knowledge and information but on completion allow you to structure a “game plan” of what needs to be done and how to do it.

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