Are you ready to raise capital for your company? Most likely you're not!

Whether you are looking to raise debt or equity capital, there are still some unwritten rules that apply that are addressed to the mentality of today's investors and funding. Sure, there are dozens of private placement memoranda and chop shops business plan that does not know how to properly consult with your business or writing a collection of documents that can, even if they wish, but will gladly take your money to put together a model and try to pass it off as custom work.

The problem is this is not necessarily the consultant, if these fly-by-nights on his shoulders most of the blame, but the client usually does not even have the appropriate structure capable of attracting a funding source, even if they had the PPM and the most amazing business I have ever hit the venture capital market. Here is a simple (very simple) way to assess your company to find out if it is properly structured to attract capital. Having a business meeting and ask yourself the following questions: What kind of corporate structure you have and why you chose that particular structure? Breaking down the infrastructure executive, where individuals are leaders in your field, do the unthinkable, the names of all Google, are the people who manage your players veritable industry of the company? They are all basic positions accounted for (President, CFO, controller, etc.)? Then, look at your advisory committee and board of directors. If for some miraculous act of God, you actually have 'these two groups represented in your company, how did you qualify? Sorry, but if you have a lawyer on your table, because he's, um ... Well, a lawyer, which is not good enough.

Do you need a guru specific legal sector that not only sets out the complexity of regulating your kind of business, but must also be an active partner qualifies as a potential strategic alliances for your business. He should be achieved in its customer base and actively collecting companies that could improve your company in distribution or in any other way you will have a beneficial outcome for all parties involved. Each member must be serving a similar purpose.

Next, on what criteria are you basing the price of the shares or loan? If you do not 'use of proceeds of a clear-cut model, you need one. This and many, many other questions must be asked before they are actually ready to raise capital and in all reality, until the corporate structure is in place you should not groped to write a business plan or a private placement memorandum. If you are serious about setting up your company to attract investors you need a turnaround consultant, you can not do alone. There is a whole industry that revolves around structuring companies for their first capital and steady increase.

Before you vote against your company, prematurely trying to raise capital, the basic concepts to keep in mind are (exactly in this order): corporate structure, infrastructure, Advisory Board, Board of Directors, use of proceeds, business plans, private placement memorandum, finder of investors, funding. Look at each aspect listed here as a separate item, break it down and analyze every minute aspect of each element and look at everything objectively and, ultimately, your company will evolve into a structure that is capable of funds and stabilized in the years to come ... ....