Capital, Investors

Generally, for most small businesses, the majority of the available options to raise venture capital are not viable. We will help you to quickly eliminate the non-viable options and focus on the one or two practical possibilities that will help you to achieve success.

Remember: If the story is a good story, it is very possible to raise capital. However, you do need to follow certain guidelines.

These are the three basic questions you must answer in order to entice friends or strangers to lend you money:

1. Are you going to lose their money?

2. When are they going to get their money back?

3. How are they going to get their money back?

Yes, all the other stuff is important, but if you can't convince someone of these three points, it will be very difficult to convince them to invest in your enterprise.

Federal and state securities laws govern how you can raise capital. You may think that these laws don't apply to you, but be warned: you disobey these laws at your own peril. There is a term called "right of rescission“ which means lenders or investors in your enterprise may simply demand the return of their funds. If you raise money from investors and fail to comply with the federal and state laws that govern this activity, your failure to comply will allow the investors to exercise their right of rescission and demand the return of all their money. If you cannot return their money, you may be held personally liable (and possibly criminally liable, depending on the circumstances). It doesn’t make sense to risk everything when it is fairly easy to comply with the laws.

Please start with the SHICAP Guide. This will give you a good grounding as to the different money raising options available to you and the likelihood of success. Make notes as you read and if necessary, call us with your questions. We charge a reduced flat rate for the initial consultation. We expect on the conclusion of the conversation you will have sufficient knowledge to make your decisions.

It is likely that you will have some questions after reading the Guide. I strongly advise that you approach the process as a two-step process. The first is feasibility.

-Do I want to do this?

-Can I do this?

-What will the end result be if I do this?

-What will be the cost in time and money if I do this?

You need to satisfactorily answer these questions for yourself before you initiate the start of any project. You wouldn't build a house without laying the proper foundation, and you shouldn’t make any decision without thoroughly reviewing and understanding the consequences of your decision. If you need to discuss this with us at any point, we are a phone call away.

In the initial consultation we will review the financial information you provide and discuss the pros, cons, and other options that might be available to you.

Remember: Any decision to proceed or not to proceed will have ramifications. It is a decision you don't want to rush.

We will provide you with a punch list of information and talking points for this conversation—data that you will gather and consider as part of the decision-making process. The goal is to help you reach an educated and considered decision. We believe that whatever decision you make will be informed and well thought out. 

It is not our job to talk you into or out of a decision, but to place all the information on the table for you to examine. Given the importance of the decision and its long term impact on your livelihood and life, the more informed you are the greater the likelihood for you to succeed.