Monday, April 5, 2010

Have Investors Begging To Invest!

Take Your Company Public: Have Investors Begging To Invest! As the economy worsens and banks continue to crash and the US dollar is losing its place as the world currency American entrepreneurs need alternative funding solutions that cater to ongoing capital needs that take advantage of the international finance stage as opposed to domestic institutional lenders.

Many companies, for the first time, are considering going public as a viable option but where does one start on this trek? How much does it cost? What type of lawyer and consultants do I need? Who sells my stock? Etc.

The reality is, going public is fairly straight forward if you have a product or service that lends itself to an invest-able option to global financiers. The process of a start-up or small/medium size business going public usually begins with the basic business plan (50 to 100+ pages in length) and a Private Placement Memorandum (Regulation D Rule Exemptions 504, 505 or 506).

The company would then do an initial round of funding with accredited investors with a mini/maxi built into the offering circular that makes it possible to reach a simple benchmark that would allow the company to start using the investment cash for growth via public offering using OTCBB (over the counter bulletin boards); this is the quickest and cheapest way to go public being that 99.9% of companies don't have the liquidity and time in business to qualify for an IPO. There are several things that a company can do to make your capital raise a pleasure and not a nightmare. Start with a solid market maker that will commit to putting forth a dominating effort to sell your shares. The next thing you need to do is put a face and a voice to the company. Hire a publicist and pick an executive, usually the CEO or CFO, set up, daily interviews on radio and TV to promote the company and as you do this you will begin to see instant results. Another thing is to send out articles and press releases focusing on every single positive point, contract and strategic partners, feed that publicity machine. Branding is another powerful aspect to raising capital. Make your brand and image something that people see on online and in magazines. A solid publicist will do wonders for you. Get your press releases going on the wire to broker dealers and market makers and other stock promoters.

Fund raising has been complicated by unethical companies that are looking to create capitalization angles for themselves whether they are the business raising capital or the broker dealer buying and selling their stock. Done honestly, there is no reason a company with a viable business concept can't be successful in raising capital quickly and easily being sold on the public market.

How To Take A Company Public

Private Placement Memorandums and Direct Public Offerings, the most common mistakes made. When gearing up to raise capital it is typically a business owners first instinct to simply throw together a business plan and find the cheapest company to put together the private placement memorandum and then seek funding. What these professionals don't realize is that they are doing things in reverse and often times a PPM is not a standalone solution to financial needs.

The first problem is the most companies will first write a business plan and cheap PPM and look for a capital solutions last, when strategically speaking, one should first find a full service solution who has a database of investors ready to fund properly structured corporations with well authored business plans and private placement memos. After you find a company that has a ready network of seasoned investors you will often find that this firm will also structure your business and documents so that you are able to attract the attention of these investors. Next, don't make the mistake of hiring just anybody to write your biz plan. You need to find a professional author who is well rooted in the art of technical writing and has a solid comprehension of your industry.

Now it's time to write the PPM. Here is a warning that will most likely go in one ear and out the other but you must never choose the cheapest service for your PPM you will regret it and this is a guarantee. Investors see these documents all day everyday and they know a template when they see it. Don't believe for a second that you will get a viable private placement memo that will actually achieve funding for anything less than $3,000; it's just not going to happen. There is too much work involved in putting a fund-able strategy together and you'll never find an experienced firm to do it for cheap.

The moral of the story is to first find an investor finder solution with a solid network of investors, second have this company write your business plan and private placement memorandum to fit the needs of their investor base and lastly, talk to this consultant about helping you perform a DPO (Direct Public Offering) to their group. This is what separates the men from the boys in the venture capital consulting industry.

Legitimate consultants who stand behind their work will take your PPM directly to their investor base and help you raise capital quickly. In return for this service the company may want a modest equity position in addition to their fee but it is always worth it and typically they will take the final step and have their investors pay to take your company public. This is the ultimate for any company that is seeking a long term funding solution.

Remember the order: 1. Find an investor finder 2. Have that company write your biz plan and PPM 3. Convince the firm to perform a DPO for fast funding 4. Offer some equity to sweeten the pot so that they take you public!

Friday, April 2, 2010

Petrol Radio Controlled Cars

Petrol radio controlled cars are amongst the highly adopted toy cars from the spectrum of nitro cars. Nitro cars are cars that do not function on electric power but power derived from nitro fuels. These types of fuels are specialized fuels which are not obtainable at general stores or toy depots. In order to enjoy your Petrol radio controlled cars you may require these fuels which can be availed from specialized shops or even through online sources. As the popularity of nitro radio controlled cars is growing the number of individuals indulging in radio car activities is also consistently increasing.

It is wise to set your hands on conventional electric based radio controlled cars before you try to start your experience with nitro cars, in case you are a novice. You need to gain experience of radio controlled cars to the point when you start feeling comfortable with RC cars and are able to work on basic troubleshooting of your toy car. An advanced electric based radio control car can provide a strong understanding on how nitro fuel radio controlled cars work. You may gain important skills such as handling your car at high speed and tricks, timely acceleration and degree of turn etc.

It should be understood that petrol radio controlled cars are efficient in comparison with electric based cars. It can be said that nitro cars are a level higher than electric cars in the world of radio controlled cars. Through your experience with electric RC cars you should also be able to determine whether you actually hold interesting in knowing your car in and out. This is important because with nitro cars you will have to be attentive and dedicated towards its maintenance. If you are just interested in racing your car and not performing required maintenance, then you should not look forward to petrol radio control cars but electric RC cars.

Also to your information you may have to invest significant amount of money on your nitro fuel RC cars. These cars are generally expensive as compared to electric RC cars. You may also have to invest time in learning to handle and maintain your car appropriately. To help you gain understanding on how petrol RC cars work, the best option would be to go for RC car kit. These car kits include caliber models that allow you to learn the functioning of the car while you assemble your car. It is wise and significant to not only race a nitro car but also to know its tools and parts.

It is believed that running-in procedure is a very important factor with petrol radio controlled cars. This is not the case in electric RC cars as you can charge the car and start racing. However, in scenario of petrol RC cars you need to be proficient in running-in the engine. An appropriate run-in will help you prevent any malfunctions such as system failure. This will also lubricate the internal parts and engine to keep it flawlessly working. You need to be careful as any discrepancy can lead to damages to your petrol radio controlled cars.