Your right, it does sound like a scheme.
I`m sure your $1k from 1k people was a hypothetical scenario so I`ll disregard that. I don`t know anybody that really "knows" 1000 people. When you make outrageous claims, some will conclude that your plan is outrageous also. Make it realistic.
No matter what your method is to raise funding. Somewhere, somehow, it has to be on paper and somehow directly connected to your gluteus maximus and the success of the business.
As to the legality of not filing and offering "shares" in your company... If not illegal, at the very least it`s unethical and shady.
If it does look like a bad scheme, it`s up to you to explain to your potential investors exactly why it is anything but that.
Can you get detailed in any way here with your plan?
Well I wasn`t sure if it was legal or not. I thought about it and wrote it on paper but I just couldn`t make it work and want to make sure it wasn`t me.
Thanks for the information. I didn`t know that raising the money can be an issue.
But this is my major weakness - not knowing how to raise capital for a startup. I mean I have some money on myself but in order to make a buzz I would really need cash to launch the marketing plan.
The biggest thing is I want to be fair. I sure don’t want to go out like those greedy Enron CEO. It was awful on what they did to their Employees and Shareholders.
I am the kind of guy that likes to share the wealth from the boardroom to the support staff and receptionist. Because off the point for a minute, if I was getting enough money PER YEAR to retire 1000x over and then my staff isn`t making CEO money but they were very integral to the success of the company, I SWEAR that I would feel like an Uncle Scrooge! I would diversity the money all the way down to the cleaning people. It would in my opinion add to the company`s bottom line.
Back to the topic - it is possible to reach out to 1,000 people (belonging to an organization) and if you give the pitch of a lifetime most likely you will have a lot of checks but it a hit and miss.
But the thing is I kind of based my theory on the NYSE; if a company is authorize to sell shares to raise operating capital I was thinking can the little startup do the same thing?
But reality is I only have 20 buddies on my buddy list lol. I like to THINK BIG but let pretend that everyone in the world is your friend for the moment. I misuse the word know, so forgive me for not being clear the first time around.
I was thinking of creating a service/product that will help people that are unable to do what the mainstream is able to do. This idea of mines has the potential to diversity an industry that is so used to catering to one group (Doctors/Lawyers/ CEOs/Consultant).
It is being put in use now, but it isn`t like I am reinventing the wheel. I just want to make it a better more efficient wheel and make some money and of course provide an useful service to people that can benefit greatly from the service/product.
I think to be honest in order for any business to make some serious noise - it would take a few million dollars to run a 30 second commercial during the Super Bowl.