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    1 Reply Latest reply on Nov 8, 2010 9:10 AM by legaljeff1

    How to be fair to investors for expanding business

    Christine1668 Newbie
      I currently have a fast food Chinese restaurant in Mississippi which is doing very well. However I would like to expand my business in Northern CA since the population density is much higher there. I don't have enough money to expand another one, and would like to have investors invest in my business. How do I propose to investors if they just want to be in it, what is the normal interest rate that I pay to them and also what if they want to be part of it as an owner, what would be fair to the investor and to me? Also where can I look for investors?
        • Re: How to be fair to investors for expanding business
          legaljeff1 Newbie
          First, contratulations on your decision to expand your business.

          One of the many ways to finance such an operation is called a Reg D Offering. Without going into great detail (this is something you will most likely need legal help on), many folks are now taking advantage of this little known method of capitalizing their ideas, and businesses.

          Essentially, a Reg D Offering is a way to acquire capital, and issue securities, without having to register securities with the SEC.

          Find a Private Placement Memorandum (PPM) and have a qualified securities attorney fill it out. Submit the memorandum to potential investors and capitalize your business without relying on banks.

          Hope this helps.