A public company rarely gives up significant equity for its Private Placements. Your odds of finding a merchant banker, mutual fund or a group of wealthy investors willing to take far lower risks of buying your discounted shares are about one in one hundred. Using our Contact Cost Model, you could contact 1,000 Merchant Bankers, Fund Mangers and Wealthy Investors at a cost of about $29,000. Your odds of raising your risk capital would be about 90% in your favor.

Going Public Problem

The problem with Going Public in States is costs associated with filing your registration statement with U.S. Securities and Exchange Commission. When you factor in at least $1.5 million in registration costs, it's no longer cost effective to go public to raise risk capital. As with private company finance, costs of your search for money will exceed risk capital you can raise. It makes no sense to spend over $1.5 million to raise less than one million in risk capital.

There Are Easier, Less Costly Ways

As your consultants, we can suggest a way of going public in America that reduces your costs by 95%. We can suggest a way to go public that reduces time factor by 66%. We can suggest a way to go public that more than doubles your odds of trading your shares in United States. If you use our Going Public Strategy, your Contact Cost Model would be $60,000 to take your company public and you would pay $29,000 to conduct your investor search. Your odds of finding your million dollars in risk capital would be about 90% in your favor. If you compare our solution with that of raise money as a private company, you'll find:

Private Company TacticCosts: $115,000Odds of success: 50/50 Our StrategyCosts: $89,000Odds of success: 90/10

That's 90% in your favor using our strategy!

If you want to use our public company strategy to raise risk capital for your company, email us today. We can arrange to meet you in San Francisco Bay Area. We lecture and travel around world and you can arrange to meet us during these trips. We regularly do phone consultations with prospective clients. Email us today.

To contact author, email Beowulfinvestments@Earthlink.net

Personal Credit Lines and Credit Cards

They are convenient, versatile forms of financing. You can borrow and re-borrow up to line limit as needed.

The negatives: you will pay relatively high interest rates-- rates range from 12% to over 18%; minimum monthly payment on many of these arrangements will repay outstanding balance within 42 months; it is easy to dig yourself deep into debt using credit lines and credit card debt; high outstanding balances against your line can negatively impact your personal credit rating.

A Margin Loan

You can use margin loans for purposes other than buying additional securities.

Any margin loan will be secured by your equity shares. Rates are often below prime, applying is relatively easy, and these loans have very flexible repayment terms.

Loans are initially limited to 50% of purchase price of your equity securities. Loan repayments are triggered when value of your stock falls below margin limit.

The negatives: Because borrowings are predicated on volatile stock values, a margin loan can be a risky proposition; if you default in repaying, brokerage firm can sell your securities to satisfy loan; an untimely sell-off can have a devastating effect on your portfolio and negative tax consequences.

The only safe way to consider a margin loan to finance your home-based business is to limit advances to a relative low ratio of your stock portfolio value – say, 25% or less.

Most of these financing methods are under your control and don’t require business plans or company financials to qualify. Although each of these methods has risks and disadvantages, so do most external methods of financing. Before proceeding with one of these financing methods, carefully consider potential benefits, risks and consequences. Whatever you decide, it helps to know options right under your nose.