The Five Questions You Must Answer

Written by William Cate


The Five Questions You Must Answer to Get Financing Help By William Cate Published November 1999 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

1. What do you have? Is your company making money? If you are a startup company, you will find it hard to raise money. The industry in which your company operates is important. If you are in a fad industry, your odds of finding money are better. Where are you selling your product or service? The larger your market,repparttar better your odds of finding money.

2. How isrepparttar 112488 company structured? You must be incorporated somewhere. I think that a company with an international market for its products or services should incorporate in a tax haven. Your management team must have a relevant education and work experience to make your company succeed.

3. What do you want? You want money. How much money? Do you need allrepparttar 112489 money now or canrepparttar 112490 investment be spread over time. You are more likely to find money ifrepparttar 112491 investment can be spread over time. The reason isrepparttar 112492 investors haverepparttar 112493 opportunity to see their initial investment produce positive results before they risk more money on your company.

4. If you had what you wanted, what would you do? Expandingrepparttar 112494 company's market is your best answer. Poor answers are R&D, raise managements' salaries, or paying down debt. If your company isn't growing, why should anyone invest?

5. What are you willing to pay for help? Concisely answer what you are offering an investor to risk their money on your company. Do you intend to rely on professional help in raisingrepparttar 112495 money? Then, concisely answer what you are willing to payrepparttar 112496 professionals for their help. If you are unwilling to payrepparttar 112497 current cost of investment, you won't find an investor. If you aren't willing to pay for professional help, you won't find professional help.

The trick is to summarize your answers into a 300-350 word email message. I'm willing to read your summary without charge. Most people inrepparttar 112498 finance business will review a clear, concise, and short email and reply with a "yes" or "no." Please don't send me your investment package unless I indicate an interest in your company. -----

* Liquidity

Due Diligence

Written by William Cate


Due Diligence By William Cate Published December 1999 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Before you pay anyone a retainer, investigate. Swindlers are attracted to money. The essence of equity finance is money. There's no shortage of crooks involved inrepparttar Stock Market.

Relying upon business references is a mistake. Honest business people refer you to associates that they know will give them a good reference. The crooks use a business reference service, run by swindlers. The crook's references appear to be key people in major industries. The referral's recommendations are always glowing. It's a business scam that can cost you money.

Start your "Due Diligence" research onrepparttar 112487 Net. Visit Netcheck at: http://www.netcheck.com andrepparttar 112488 Better Business Bureau at: http://www.bbbonline.org/consumers/safesurfing.html

Here are two websites that cover stock fraud. http://www.endfraud.com/ http://www.financialweb.com/stockdetective/

You can userepparttar 112489 Net to do a credit check on most people inrepparttar 112490 United States and Canada. While most entrepreneurs have bad credit histories, professionals should not be onrepparttar 112491 verge of bankruptcy.

Ifrepparttar 112492 professional is an attorney or accountant, check withrepparttar 112493 State or Province to ensure that their license is current. Ask if there have been consumer complaints against them.

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