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S1 Registration

A Form S1 represents the opening registration that a US firm must submit with the SEC prior to an Initial Public Offering. The Securities Act requires a registration statement, otherwise known as Securities and Exchange Commission Form S1, previous to security can be issued on a public exchange such as the NASDAQ, NYSE, or other exchanges. Foreign corporations can register with the SEC, but they must do so using the SEC Form F1. Corporations must fill out Form S1 to outline their intended use of capital proceeds, a description of their current business strategy and competition, and a brief prospectus for the new security, including offering pricing mechanism and any other dilution to other listed stocks.  The SEC also mandates that any material business conducted between the corporations and its directors and external counsel be disclosed. Investors can access S1 filings online in order to do due diligence on new offers before they go public.  As a result, businesses can use t...

Why is borrowing money good for your business?

Debt often has a negative connotation but is not really the complete truth. It is often a good way to raise money in order to enable your business to grow and expand. When it comes to loans there is more options available so you can choose the right option for you. There are different kind of loans but the main ones are bank loans, credit cards, lines of credit and factoring. Bank loan has a simple concept with fixed amount and fixed time. It is paid monthly with interest rate. The problem is that it is not that easy to get a loan especially if you just have started your business and even if you do bank may require significant collateral. You are probably already familiar how credit cards work. They are mainly used for short-term funding. You should be careful when using credit card not to build up balance too high. Line of credit is a very flexible type of loan. You don't have to take the lump some but smaller amounts that are better suited to your needs. It is only impo...

Why is business plan important?

If you are starting a business, having a business plan is a must but it is also important if you already have established business. The biggest mistake is to see business plan as something static, with time it will change just like your business. In the growth phase good  plan will help you with forecasting sales and raising capital. Later, it can help you to see what goals you have accomplished and what new ones you need to add. Your business plan must be well thought so it represent your company in the best possible way. Good written business plan let others know that you are serious and that you can handle all that running a business requires from you. There are couple of necessary elements that your business plan needs to have: executive summary,  business/industry description, market analysis, competitive analysis, sales and marketing strategies, organization management, operating and financial plan including funding requirements. The executive summary is the ...

The benefits of crowdfunding

Crowdfunding continues to grow globaly. Total crowdfunding raised worldwide from 2014 to 2016 is $2.1 billion while in 2016 in US total crowdfunding raised was $738.9 billion. The crowdfunding industry is projected to grow over $300 billion by 2025. North America remains the largest crowdfunding market, having raised $17.1 billion in 2017. Asia with fast growing market is catching up with $10.54 billion raised the same year, while the Europe is in the third place with $6.48 billion. Cro wdfunding can be used as afree marketing tool. Crowdfunding paltforms make new projects easily discoverable giving exposure to a lot of new people on the platform. In addition, most platforms incorporate social media makin it easier to share and spread the message via facebook, twitter and other platforms. Also, media often picks up on the popular projectes, providing them with more publicity. People with limited resources can test their product by using the crowdfunding platform to do pre-sal...