In Search Of Stock

Investors can provide expansion dollars through private placements

a marketing plan. This includes sending direct mail pieces to interested parties and hosting meetings where you make a formal face-to-face presentation. Consider posting your offering on the Internet via such sites as the Direct Stock Market (www.dsm.com).

Step five. Conduct a telemarketing campaign. Assign someone the task of making follow-up telephone calls or sending letters to potential investors.

“An overwhelming problem with private placements is that the business owner underestimates the amount of time and energy it will take to raise the money,” says Clay Womack, CEO of the Direct Stock Market Inc. in Santa Monica, California. “A lot of people think it will take 90 days, when it takes six to nine months.”

Direct Stock Market posts 30-80 deals quarterly. A basic listing package is $1,500 for the first 90 days and $750 per quarter thereafter. In addition, there are virtual road shows, allowing live presentations to be broadcast online.

You have to get in the habit of making the search for capital an ongoing function of your job. Says Womack: “Raising money is another full-time job outside of the day-to-day operations.”

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