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    1 Reply Latest reply on Jun 26, 2008 3:48 PM by Adducent

    Start-up Capital

    Sparky04 Wayfarer
      I am in the process of buying a building that has an apartment, office, warehouse, and retail. The retail I intend to use for a restaurant. We are securing the building on our own and are looking for investors, SBA loan, to create the capital needed for the restaurant build out. I am currently working with the local SBDC to finalize the business plan that I created. How do I get this plan into the hands of potential investors? Do I attempt to get investors first and make up the difference with a loan? Just looking for a little guidance. Any help would be greatly appreciated.
        • Re: Start-up Capital
          How much capital are you looking for?

          In some ways the amount will dictate whether you should focus on debt or if you need large amounts of capital but you you don't have enough credit and collateral to raise it via debt (or you want to minimize debt so your cash flow is stronger) ... then you need to look at bringing in equity investors.

          If your plan is solid and the business a viable opportunity you you may be able to find a local "Angel" investor who would provide some funding for you. If you need a large amount of funding you should look at using your plan for the basis to have your attorney prepare a Private Placement Memorandum. Also known as a PPM this is the document that covers all the legal aspects of raising capital from from private investors by selling them stock (and sometimes bonds, which are often convertible to equity). if you are interested in raising capital that way then check with your attorney about a Reg D PPM filing; the costs etc. For that your plan should be well prepared and include at least 3 years of pro forma financial projections.

          I hope the above gives your some help or food for thought. Best of luck to you.

          Dennis Lowery
          Adducent, Inc.