Forums: Discussions for entrepreneurs and small business.

I will tell you this, my main "investors" are my life long best friend`s dad.  He has been in business for himself for years and has made a fortune in the Telecom industry. He and a couple associates have formed a partnership strictly to invest in stuff. Lots of different stuff. He and his associates are VERY HIGH net worth individuals.  Now just because he is someone that I have known for a long time doesn`t mean that he was willing to just say "how much do you need" and hand it over. I had to go through the whole process. Elevator pitch, business proposal, business plan, financial projections the whole works.  I believe everyone is clear on who is who and what they are expected to do.  Well, I have a phone call with them in about 30 minutes so I better get going. Thank you all again. Best Wishes!

Ken

Ken,

Based upon the questions (below)  in your intial post, I`d say some things weren`t covered.

Second, how often do I need to update investors with the progress of the company?  What should I expect as far as input from investors? Should I seek their approval for business decisions or should I just keep them updated on the progress according to the busines plan?

I would not assume that just because these people have made  a bunch of money that they know how to structure your deal correctly.(or to your benefit)

Robert Johnson

 

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Robertj-

 

Oh, well shows what I know. I was under the impression that Regulation D was for all other stock transactions that will not be regulated.

 

I am glad to know there are other alternatives. Please elaborate on the alternatives.

 

Take care,

 Eric

This may be more than you want to know, however:

The SEC regulates all securities - except those which are exempt (such as government securities, banks, etc) which are usually regulated elsewhere.

For all those other securities - you are required to register them with the SEC before selling any - unless you can qualify under an exemption.

Reg D (with the specific sub-section) provides some of those exemptions. It is the probably the most well known and frequently used to make a Private Placement - typically under Rule 506. This is a safe harbor rule for both federal and states. The preparation of necessary documentation (a Private Placement Memorandum -PPM) and other supporting materials requires some investment.

There are other possible exemptions available (requiring varying documentation and preparation $) depending upon circumstances which we discuss with each client as we help them find the optimium approach to their capital needs.

 Robert Johnson

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com