The task of raising money for a business is

 not as difficult as most people seem to think.

This is especially true when you have an idea

 that can make you and your bankers rich.

Actually, there's more money available for new

business ventures than there are good business

ideas.

A very important rule of the game to learn:

Anytime you want to raise money, your first

 move should be to put together a proper prospectus.

This prospectus should include a resume of your

background, your education, training, experience

 and any other personal qualities that might be

counted as an asset to your potential success.

It's also a good idea to list the various loans you've

had in the past, what they were for, and your history

in paying them off.

You'll have to explain in detail how the money you

 want is going to be used. If it's for an existing business,

 you'll need a profit and loss record for at least the

preceding six months, and a plan showing how this

 additional money will produce greater profits.

 If it's a new business, you'll have to show your

proposed business plan,your marketing research

 and projected costs, as well as anticipated income

 figures, with a summary for each year, over at least

a three year period.

It'll be advantageous to you to base your cost

estimates high, and your income projections on

minimal returns. This will enable you to "ride thru"

those extreme "ups and downs"inherent in any

beginning business.

You should also describe what makes your business

unique - how it differs from your competition, and the

 opportunities for expansion or secondary

products.

This prospectus will have to state precisely what you're

offering the investor in return for the use of his money.

He'll want to know the percentage of interest

you're willing to pay, and whether monthly, quarterly or

on an annual basis.

Are you offering a certain percentage of the profits?

A percentage of the business? A seat on your board

 of directors?

An investor uses his money to make more money.

He wants to make as much as he can, regardless

whether it's ashort term or long term deal.

In order to attract him, interest him,and persuade him

to "put up" the money you need, you'll not only

 have to offer him an opportunity for big profits, but

you'll have to spell it out in detail, and further, back up

your claims with proof from your marketing research.

Venture investors are usually quite familiar

 with "high risk"proposals, yet they all want to

minimize that risk as much as possible.

Therefore, your prospectus should include

a listing of your business and personal assets

with documentation - usually copies of your tax

 returns for the past three years or more.

Your prospective investor may not know anything

 about you or your business, but if he wants to know,

he can pick up his telephone and know everything there

 is to know within 24 hours.

The point here is, don't ever try to "con" a potential

 investor. Be honest with him.

Lay all the facts on the table for him. In most cases,

if you've got a good idea and you've done your

homework properly, an "interested investor" will

understand your position and offer more help than

you dared to ask.

When you have your prospectus prepared, know

 how much money you want, exactly how it will be

used, and how you intend to repay it, you're ready

 to start looking for investors.

As simple as it seems, one of the easiest ways of

raising money is by advertising in a newspaper or

 a national publication featuring such ads.

Your ad should state the amount of money you

want - always ask for more money than you need

so you have roomfor negotiating.

Your ad should also state the type of business

involved (to separate the curious from the truly

 interested), and the kind of return you're promising

on the investment.

Take a page from the party plan merchandisers.

Set up a partyand invite your friends over. Explain

your business plan, the profit potentials, and how

much you need.

Give them each a copy of your prospectus and ask

that they pledge a thousand dollars as a non-participating

 partner in your business.

Check with the current tax regulations. You may be

allowed up to 25 partners in Sub Chapter 5 enterprises,

opening the door for anyone to gather a group of friends

 around himself with something to offer them in return for

 their assistance in capitalizing his business.

You can also issue and sell up to $300,000 worth

of stock in your company with out going through

the Federal Trade Commission. You'll need the help

 of an attorney to do this, however, and of course a

good tax accountant as well wouldn't hurt.

It's always a good idea to have an attorney and

an accountant help you make up your business

 prospectus. As you explain your plan to them,

and ask for their advice, casually ask them if they'd

mind letting you know of, or steer your way any

potential investors they might happen to meet.

Do the same with your banker. Give him a copy of

your prospectus and ask him if he'd look it over and

offer any suggestions for improving it, and of course,

let you know of any potential investors.

In either case, it's always a good idea to let

them know you're willing to pay a "finder's fee"

if you can be directed to the right investor.

Professional people such as doctors and dentists

are known to have a tendency to join occupational

investment groups.

The next time you talk with your doctor or dentist,

give him a prospectus and explain your plan. He may

want to invest on his own or perhaps set up an

appointment for you to talk with the manager of his

investment group.

 Either way, you win because when you're

looking for money, it's essential that you get the

 word out to as many potentialinvestorsas possible.

Don't overlook the possibilities of the Small

Business Investment Companies in your area.

Look them up in your telephone book

under "Investment Services."

These companies exist for the sole purpose of

lending money to businesses which they feel have a

good chance of making money.

In many instances, they trade their help for a

small interest in your company.Many states

 have Business Development Commissions

whose goal is to assist in the establishment

and growth of new businesses.

Not only do they offer favorable taxes and business

expertise, most also offer money or facilities to help a

new business get started.

Your Chamber of Commerce is the place to check

for further information on this idea.

Industrial banks are usually much more amenable

 to making business loans than regular banks, so

be sure to check out these institutions in your area.

Insurance companies are prime sources of long term

business capital, but each company varies its policies

 regarding the type of business it will consider.

Check your local agent for the name and address of

the person to contact.

It's also quite possible to get the directors of an

other company to invest in your business. Look

for a company that can benefit from your product

or service.

Also, be sure to check at your public library for

available foundation grants.

These can be the final answer to all your money

 needs if your business is perceived to be related

to the objectives and activities of the foundation.

Finally, there's the Money Broker or Finder. These

are the people who take your prospectus and circulate

 it with various known lenders or investors.

 They always require an up-front or retainer fee, and

 there's no way they can guarantee to get you the loan

or the money you want.

There are many very good money brokers, and there are

 some that are not so good.

They all take a percentage of the gross amount that's

finally procured for your needs. The important thing is

to check them out fully; find out about the successful

loans or investment plans they've arranged, and what

 kind of investor contacts they have - all of this before

you put up any front money or pay any retainer fees.

There are many ways to raise money - from staging garage

sales to selling stocks. Don't make the mistake of thinking

that the only place you can find the money you need is

through the bank or finance company.

Start thinking about the idea of inviting investors

to share in your business as silent partners.

Think about the idea of obtaining financing

 for a primary business by arranging financing

 for another business that will support the start-up,

establishment and development of the primary business.

Consider the feasibility of merging with a

company that's already organized, and with

 facilities that are compatible or related to your

needs.

Give some thought to the possibilities

of getting the people supplying your production

 equipment to co-sign the loan you need for start-up

capital.

Remember, there are thousands upon thousands of ways to

 obtain business start-up capital. This is truly the age of

creative financing.

Disregard the stories you hear of "tight money," and start

 making phone calls, talking to people, and making

to discuss your plans with the people who have money

 to invest.

 There's more money now than there's ever been for new

businessinvestment. The problem is that most beginning

 "business builders" don't know what to believe or which

 way to turn for help.

They tend to believe the stories of "tight money," and

they set aside their plans for a business of their own until

a time when start-up money might be easier to find.

The truth is this: Now is the time to make your move.

Now is the time to act. The person with a truly viable

business plan, and determination to succeed, will make

use of every possible idea that can be imagined.

And the ideas I've suggested here should serve as just

a few of the unlimited sources of monetary help available

 and waiting for you!your banker. Give him a copy of your

prospectus and ask him if he'd look it over and off.