Pro Forma Costs of Raising Capital using 506(c)

Private Placement Memorandum.
Consulting and Preparation.

No Charge 30-Minute Consultation.

PPM Preparation Fee $4,800 - No Hidden Charges.

Financing of Fee Available w/ no interest if repaid within 6 months.

Business Plan

You should prepare this yourself or create an outline of all the topics and flesh out the outline as much as possible with details. Then, give the outline to someone to write the plan. You can also ask a professional for an outline to fill in —$ 800 –$2,800.

You must advise the writer of your business plan and the profile of your prospective investor. Too often, business plan writers will gear their writing inappropriately to institutional or family-managed money. This category of investors is unlikely to be interested if you are a startup or operating a business without earnings.

Website

You can provide the outline and the verbiage (bullet points) to the website designer. I recommend that you develop your website using WordPress software. There are thousands of developers who are familiar with WordPress. You will have no problem finding a web designer – cheap. The website does not need to be fancy. $300 – $600. There are programming services such as Freelancers, Guru, and Upwork that will allow you to obtain competitive quotes for your business plan or website.

Google Ads

There is no cost to set up a Google AdWords account. In this case, you will likely set your keyword–per–click cost at plus or minus $1 per click – 50 clicks = 50 visitors to the website, which will cost $50. You set your budget at $25 to $50 per day. At $25 per day – over 30 days, your cost will be $750, representing 750 prospects clicking on your ad and being brought to your website. If you budget $3,000 for advertising, you can place your Offering in front of 3,000 prospective investors.

Dedicated Telephone Line

If your phone was purchased within the last 3 or 4 years, it will likely be able to handle 2 mobile phone numbers (eSIM). The incremental monthly cost will be approximately $25. Setting up a separate line in your phone allows you to identify incoming calls from prospective investors and create a voicemail message tailored to investor calls specifically.

Private Placement Preparation Cost:

My fee is $4,800. See the Shicap invoice in the menu for details. You may find others who will create the documents for less or more. You can use my fee to do a cost proforma. There are no other hidden costs to my fee… See the Main Menu for the Shicap invoice for deliverables.

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