Step III. Advertising for your investors costs money. You could be president of local country club and its members your investors. This might limit your investment marketing costs to a few Country Club dinners. You can run ads in local newspapers and your costs will be a hundred dollars or less. You can use a variety of creative marketing techniques and your costs may still remain below $1,000.

You can use a professional marketing group to help you find your investors. They'll charge anywhere from $15,000 to over $200,000 for their help.

In California, if you did everything yourself, your out-of-pocket costs could be as low as $6,500. If you have investor contacts, this is a good investment of your time and money. If you lack investor contacts, doing it yourself wastes your money. You need professional help.

The odds of honest Professional Help raising $200,000 for your company are about 1-in-4. On a statistical base, any professional payment over $50,000 is a mistake.

It costs money to raise money. Your goal is to find a beneficial ratio between costs and probability of raising risk capital. Because it offers greater investor liquidity, I think that taking your company public makes more sense than doing a SCOR offering. However, creating and funding a public company costs more than doing a SCOR offering. In same risk reward progression, buying a public blind pool costs more than taking your company public. But, you achieve near certainty that you will be rewarded by getting money in Blind Pool Treasury.

A successful business makes right decisions in a maze of risk reward steps. Until you understand risk reward ratio, you can't make an informed business decision.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Maker Makers can buy stock for their own account. If there's strong Bid demand, Market Maker isn't obligated to reflect it in Bid & Ask prices. This allows Market Maker to buy shares at lower prices for their own account. Once they own low-priced ask stock, they report stronger bids. They sell stock, adding stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.

The goal of NASD was to have Market Making broker act like a stock specialist on American or New York Stock Exchanges. It doesn't work because NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in company's stock.

If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that Market Maker makes money, but your company benefits.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]