Mark–I’m only now going through this mail so I hope this isn’t
too repetitive. Start-up companies usually develop an "offering"
document or a prospectus. They tend to follow the same formula
and indeed the same language in the “risk” section. In general,
they are organized as follows:
–Market/Product --This is the description of the market you are
trying to penetrate and the product you will offer. This is the
key section so research is essential. You need to persuasively
demonstrate the viability of your concept. A place to start on
overall market research is with the financial anaylst reports on
public companies in the jewelry business. ID the companies and
get on the web and ask for Annual reports, 10Ks and any investor
packages. Or call the company’s investor relations department.
As public companies, they must respond, albeit sometimes slowly.
Also, you don’t need to tell them why you’re calling, just that
you’re interested in the company.
–Risk Fastors – Boilerplate No company track record, no
guarantees, blah, blah
–Officers – Bios of key people + projected compensation. What
you plan to take out immediately either in the form of shares or
–Offering – describe exactly what you need and what you’re
going to give up in return.
It’s a good idea to try to obtain a sample prospectus – go on
line and look for one.
Also, a tip. Try like hell to get make a private placement – a
private investor. The next step is usually the venture caps and
they always want too much of the company.
Hope this isn’t too repetitive. Fleury Sommers