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A HELPFUL GUIDE DETAILING THE STEPS TO CONSIDER WHEN LAUNCHING YOUR VERY OWN SMALL BUSINESS

1.  HAVE AN IDEA BUT NOT SURE IT’LL WORK.
   Thinking through the potential of an idea is an important part of starting a business. Do research and gather data that can help decide if it’ll work.
   CONSIDER THIS:
   – What are the practical realities of running my own business?
   – What skills and abilities should I focus on to be successful?
   – Does my business idea really excite me?
2.  I’VE DONE SOME PRELIMINARY RESEARCH, WHAT ELSE SHOULD I CONSIDER?
   Consider various types of research to make sure you have a complete picture. Conduct surveys and interviews with potential customers, gather data from public sources and research your competitors to understand the strengths and weaknesses of those selling a similar product or service.
   CONSIDER THIS:
   The types of questions you may ask will depend on the product or service. However, you should always include questions to determine the following:
   – Preference (flavours, features, how they prefer the service to be delivered to them)
   – Consumer behavior (how often they would purchase this type of product or service?)
   – Pricing (how much do they currently pay for this service? Are you able to compete?)
3. I’VE GOT A VISION FOR MY BUSINESS BUT IT’S STILL A WORK IN PROGRESS

You should spend some time establishing a clear vision statement; this is a critical step in planning a business. It should define what you expect your business to be in the future.
CONSIDER THIS:
– Include what you would like your company to be in 2, 5 and 10 years.
– Your vision statement should be succinct, vivid and inspiring.
– Your business vision should align with your personal vision and goals.

4.  IS HAVING A BUSINESS PLAN REALLY ALL THAT IMPORTANT?

YES. A business plan will outline your short and long term objectives, and most importantly it will help you see whether your business makes financial and operating sense. It is essential.
CONSIDER THIS:
– Include your short & long terms goals and how you’ll accomplish them.
– Show an understanding of the market, the competition and your customers.
– Indicate how you intend to finance your business.

5. IS THERE ANYONE ELSE WHO SHOULD BE ADVISING ME ON MY BUSINESS?

As a small business owner you will be called on to wear many hats in order to run your business. Involving the right advisors early on will help you be more successful in your business venture.
CONSIDER THIS:
– Include a lawyer, an accountant and a small business advisor on your team.
– Make sure your advisors are qualified and specialized, referrals are best.
– Choose advisors who are compatible with you and understand your needs.

6.  HOW DO I SECURE THE FINANCING I NEED TO START MY BUSINESS?

A combination of financial sources may be the best way to raise the money you need to launch your business; including loans, credit lines and credit cards. To prepare for getting financing make sure that.
CONSIDER THIS:
– Your business plan is up to date and has clear measurable goals.
– Your financial statements give an accurate picture of your finances.
– Have your accountant review both your personal & business statements.

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Crowdfunding is a method of funding a project or a business venture by raising small amounts of money from a large pool of individuals. The term crowdfunding refers to internet -mediated registries. The modern crowdfunding model has three partakers: initiator of the fundraising campaign, one who puts forward an idea, individuals and investors who support the idea and moderating organization (often called platform) that brings two two parties together. Crowdfunding can be used to fund a wide range of project, from startups to non-profit organizations.

There is more than one way to crowdfund your business. The most common types of crowdfunding are: reward-based crowdfunding, equity crowdfunding, donation-based crowdfunding and marketplace lending (also known as peer-to-peer lending). With traditional ways of raising capital you can easily feel restricted. Pursuing the limited pool of investors can be arduous and time-consuming. That way you can easily lose your time and money. Crowdfunding is considered alternative to traditional methods; it is young and quick growing market that is transforming the ways of raising capital.  All you need to do is to sign-up with the platform and list your needs. But it is not that easy. it requires a good strategy and solid execution.

Reward-based crowdfunding provide the donors with rewards. It also means that you need to set the funding goals and devise a reward strategy. Depending on the amount of the donations you can separate donors into two or more ranks and therefor offer different types of awards. Often awards can be a prepurchase at advantageous prices or to first test the product. Good side of reward-based crowdfunding is that you don’t sell equity but instead you receive donations from people that support you and believe in your idea and/or your product. That is very important for your future products; it will be easier if you already have a fan base. On the other side it can bring a lot of pressure. After the funding part is over it means that you have to manufacture the product and ship which can be overwhelming for startup companies.

Other common type of crowdfunding method is equity crowdfunding. Similar with traditional methods, you get a working capital in exchange for part of ownership in your company. This means that in this way is giving the opportunity to wider range of people to invest. Sometimes on crowdfunding platforms you can meet accomplished investors or maybe an angle investors that are interested in your business idea. Another advantage is that you can potentially raise over $1.5 million. Very important benefit equity fundraising compared to traditional method are easier investor relations. All investors are consolidated as one investor by the platform. On the other hand you will have to give up part of you ownership in the company. You will have to get something really valuable in return in order to pursue it.

Crowdfunding has emerged as valuable way for businesses to raise money. Each method has it pros and cons and it is up to you to decide what is the best solution for you. Since crowdfunding is just getting started it is possible that there will emerge new ways to fund creative projects and businesses.

MinaMarGroup.com
investorrelations.mmg@gmail.com

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An RTO involves a smaller quoted company taking over a larger unquoted company by a share-for-share exchange. In order to acquire the larger unquoted company, a large number of shares in the quoted company will have to be issued to the shareholders of the larger unquoted company.
After the takeover the current shareholders in the larger unquoted company will hold the majority of the shares in the quoted company and will therefore have control of the quoted company.

Reverse takeovers benefits include:

Easier access to capital markets
As a listed company, more finance is likely to be available and the cost of that finance is likely to be lower than if the company was still unquoted.

Higher company valuation
As the shares in the company will be listed, potential investors will deem the shares to be less risky as the company will have to abide by the relevant rules and regulations.

Enhanced ability to carry out further takeovers
Once the shares in a company are listed, the company is able to acquire other companies through further share-for-share exchanges.

Enhanced ability to use share based incentive plans
Once the shares of a company are listed, share based incentive plans can be used as a key tool to attract and retain good quality employees.

Reverse takeovers – the potential drawbacks:

Lack of expertise
A company achieving a listing through an RTO may find that it does not have the expertise to understand and deal with all the regulations and procedures that listed companies must comply with.

Reputation
RTO has often been viewed as a poor man’s IPO. Hence, companies that achieve their listing in this way may be viewed less favourably by investors than companies that have completed an IPO.

Risk
As a result of the lower level of scrutiny that is applied to an RTO compared to an IPO, investors must be aware of the higher level of risk that is attached to companies achieving a listing in this way.

As with anything that seems too good to be true, it must be recognized that an RTO is not without significant complication and cost. Just as there is no such thing as a free lunch, there is also no easy way to achieve a listing.

MinaMarGroup.com
investorrelations.mmg@gmail.com

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Mergers and Acquisitions (M&A) is the area of corporate financing, management and strategy dealing with purchasing and or joining with other companies. It is an umbrella term for various transactions such as mergers, acquisitions, consolidations, tender offers, purchase of offers and management acquisitions. In mergers and acquisition two companies are involved but in merger two companies are combined in one and in acquisition one usually larger company buys another smaller company.

From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas acquisition occurs when one entity takes ownership of another entity’s stock, equity interests or assets. From a commercial and economic point of view, both types of transactions generally results in the consolidation of assets and liabilities and liabilities into one entity and the distinction between a merger and an acquisition is less clear. Even though they are used as synonyms they are not the same thing. In a merger new company is created were both companies are theoretically equal so sometimes it is called ‘merger of equals’.

Merger also means new ownership and management and the new stock is issued.  With acquisition new company doesn’t emerge but target company becomes a part of acquiring company. Acquisitions are sometimes known as hostile takeovers and they carry negative connotation so sometimes acquisition may be called a merger even if it technically isn’t. Real difference is in how the acquisition communicated and perceived by the target company, it’s board of directors, managements and employees.

The acquiring company can buy target company with cash, stocks or both combined. The special type of acquisition is reverse merger. It is a deal that enables a private company to become publicly traded in short amount of time. Private company acquires a public shell with little assets and no operation and in that way reverse merges into a public company.

Mina Mar Group provides comprehensive consulting services in the merger and acquisition sector. We specialize in reverse mergers, matching emerging growth companies that are looking to become publicly traded with appropriate shell companies. We provide guidance on all the aspects of reverse merger process, from initial introductions through the actual closing of the deal.

MinaMarGroup.com
investorrelations.mmg@gmail.com

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Reverse merger is a good alternative to traditional initial public offering. Reveres merger is the acquisition of a public company by a private company when shareholder of a private company purchase control of the public company and then merge it with a private company. In this way lengthy and complex process of IPO is bypassed. Publicly traded corporation is called shell because that company usually doesn’t have any assets or net value but only its organizational structure.

What reverse merger does is that it separates the going public process and capital raising function. Is is basically conversion mechanism that turns private company into public company. Raising capital is not priority but benefits that come with being a publicly traded company. This separation is the main reason why reverse mergers has so much benefits. private company doesn’t have to hire investment bank for underwriting and marketing the shares the process is less expensive and less time consuming.

IPO usually takes 6 – 12 month, in some cases over the year while reverse merger takes few weeks to four months. Difference is significant and it will enable management to concentrate on the business and not lose too much time and energy dealing with going public process. Even if company is undergoing traditional IPO process it doesn’t mean it will ultimately go public because stock market condition can change in a one year period. Management can decide to opt out if conditions are unfavorable. Reverse merger is less dependent on market condition because company doesn’t rely so much on raising capital but on benefits of being a publicly listed company. The greatest benefits include greater liquidity, greater access to capital market, attract more investors and flexibility in financing.

Reverse merging into a public company opens new financing options including:

• Issuing stock in an additional secondary offering
• Exercising warrants, where stockholders may purchase additional shares at predetermined prices
• Increase liquidity of company stock
• Higher company valuation since share prices may be higher
• Using stock to acquire other companies in order to grow the business
• Using stock incentive plans to attract and retain valuable employees
• Overall greater access to a variety of capital markets

Mina Mar Group has invested significant resources and capital to develop and maintain an inventory of clean public shells for a variety of stock markets and company sizes. We have done the extensive work of “cleaning” our public shells thereby reducing all associated risks. We provide these public shells to our IPO clients and we also sell our public shells to qualified and interested parties.

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