Tutorial #2: 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.

Why is this important? These pro forma costs include advertising that puts your Offering Documents in front of <> 3,000 qualified investor prospects.

Business Plan

You should prepare the business plan 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 should advise the writer of your business plan and the profile of your prospective investor. Too often, business plan writers tailor their writing inappropriately to institutional or family-managed funds. 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 bullet points to the website designer. I recommend that you develop your website using WordPress software. Thousands of developers are familiar with WordPress. You will have no problem finding a web designer—cheap. The website does not need to be fancy, costing between $300 and $600. There are programming services, such as Freelancer, Guru, and Upwork, that allow you to obtain competitive quotes for your business plan or website.

Google Ads

Setting up a Google AdWords account incurs no cost. In this case, you will likely set your keyword-per-click cost at plus or minus $1 per click. Fifty clicks will result in 50 website visitors, which will cost $50. You set your budget at $25 to $50 per day. At $25 per day for 30 days, your total cost will be $750, representing 750 prospects who click on your ad and are directed to your website. If you budget $3,000 for advertising, you can place your offering in front of 3,000-plus 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 on your phone allows you to identify incoming calls from prospective investors and create a voicemail message explicitly tailored to investor calls.

Have Questions? Need Clarification? Call Mr. Shields at 1-239-378-1226. Consultations are free.

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