How To Attract Investors & Find Sponsors

Maria Simone, Founder of Dream Scout, LLC has outlined the following steps to attract investors and find sponsors. Here they are:

1)      Determine your overall vision/business milestone that you would like to attain

2)      Create a budget that includes every resource you will need to reach that milestone

3)      Include operating expenses and salaries

4)      Create a funding strategy:

a)      Self-fund without jeopardizing your personal financial well being

b)      For resources or ‘human capital’, barter or offer revenue share or equity

c)       Consider employing pre-selling strategies

d)      Purchase order financing to help defray manufacturing costs

5)      Establish business credit

-Business credit is independent of your personal credit score

-Paydex: Start the process immediately

-Begin building Trade Credit by signing up for D-U-N-S # @ http://dnb.com

-Contact John Brown @ jbrown@thefundinghouse.biz, he can assist you in getting bank lines ($5K-$250K)

6) Consider attracting corporate sponsors if you are offering significant exposure to a market

-$16 Billion has been spent in corporate sponsorships

-Best bets: Heavily trafficked website, events and launches, TV/Radio Show, partnering with a non-profit

-This is a time intensive strategy-no payback to sponsors (you can ask for $5K-100K/yr)

7) Short term ‘seed’ or ‘bridge’ financing from friends and family

-You can offer them attractive returns on 1-2 year notes

8) Private stock offering for equity in the company

-ROI comes at sale of company or at IPO or if/when you pay dividends

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