For decades entrepreneurs have successfully used private placement offerings to fund their businesses with capital and for years, accredited private investors have experienced the benefits of these offerings whereby the company offers a minority equity position through the sale of stocks or membership units. Private placement offerings are risky but when an investment becomes a “home run”, the rewards are tremendous with returns sometimes hundreds of times the initial investment.  Some investors seek out companies that intend to be acquired or will consider an IPO within a short period of time. The company uses the private placement offering for seed capital while others are for business expansion.

Predictions for 2010 are that over $1 trillion dollars will be raised through private placement offerings. In 2007, $600 billion was achieved therefore you can see the growth of these types of offerings.

All private placement offerings are regulated by the Security & Exchange Commission and require the company making the offering to have the proper exemption in the form of a Reg D memorandum.  Depending on the amount being raised will determine the Reg D exemption. For a company raising less than $1 million, a Reg D 504 most likely will be used. For those companies seeking more than $1 million, a Reg D 506 would most likely be used. In addition to the federal SEC guidelines and regulations nearly every State has laws to protect the investor. This is why many private investors like investing. There are penalties, fines and even criminal prosecution for individuals who misrepresent and/or commit fraud in the offering.

Profran Consultants, Inc. works with approximately one hundred individuals each year who offers private placement offerings to investors.  Since 1982, Ken Hollowell, CEO/President of Profran Consultants has experiences in this arena.  Mr. Hollowell guides his clients through the regulations, guidelines and requirements preparing the proper memorandum to be offered along with preparation of the promotional and marketing materials. In addition, Mr. Hollowell coaches and teaches the client in ways to find and approach private investors. His client’s success rates are among the highest in the industry. The range of industries are from retail, manufacturing, technology, environment friendly, real estate, mortgage, automotive, health care, entertainment, and franchise companies to name a view.

For more information on existing investment opportunities or funding your company, e-mail info@regdconsultant.com or call Mr. Hollowell at (407) 363-3545.

What about those individuals who are in a startup mode or have already an existing small business and requires funding and who knows the laws and regulations and complies with them by having prepared a Reg D private placement offering? They are worthy of investigation and due diligence as a possible investment. Those are the companies that YOU want to pay attention to as a viable business investment. Some of these companies have tremendous potentials and could be an investment “home run.”

There are two commonly used Reg D’s. The Reg D 504 is used when the offering does not exceed $1,000,000 while the Reg D 506 is for offerings over $1,000,000. Everything about the offering is found in the memorandum that is provided to the investor for review.

I receive telephone calls from individuals who have discovered the secrets of Reg D 504 private placement offerings in particular and the stories they tell are truly amazing. One such person indicated that he only will invest in Reg D 504 offerings and will invest in as many as 8 offerings per year at an average investment of $50,000 for each offering and his returns are averaging through both dividends and buy outs in as little as 24 months a 4 time return on investment. He continued to tell me that he’s a retired Wall Street stock broker and discovered private placement offerings while there. The more he studied the opportunities the more interested he became in this often overlooked investment method. He specifically focused on startups because occasionally he could acquire the equity at either a reduced price or a 2 for 1 deal.

Further discussing how he benefits I specifically asked him about his returns asking him to confirm what he had told me in realistic numbers. He told me that out of a $50,000 investment if he could acquire the 2 or 1 stock deal, he would actually exit the investment within 24 months with $400,000. I asked him, “You are telling me you invest in up to 8 deals each year and on average earn over $3 million from your investments?” He said without hesitation, yes!

This is why I often refer to a private placement offering “The best kept secret in business investing.” I’ve spoken with many individuals over the years that have discovered the secrets, opportunities, benefits and advantagesof investing in a private placement offering.

Most private investors want to put their money in a company that has strong management leadership, tremendous growth potentials, pays reasonable dividends and has an exit strategy in place that allows a pay off that is satisfactory to the investor within an acceptable time period. Isn’t it the dream of investors to find a company that meets those high standards?

In Jacksonville, Florida, there’s such a company offering an opportunity to become an equity member that could be what you’ve been looking to find. The company has been in research and development for one and one half years during which time it has fine tuned its system of business, and found the right marketing procedures and direction to launch the company Internationally with a simple program that has the potential to earn tens of millions of dollars within a relatively short time span. The company is using elements that will assure its success and expansion in a cost effective manner. Those elements are the Internet, software programs, an acceptable and needed service, franchising and affiliate network.

In brief, I’ll describe the program and company operations. Skadoit, LLC has created and established an online computer backup program (storage of data) and service that can be used by individual computer users (PC or Mac) up to large corporations with thousands of computers. The marketing will be performed through a network of licensed franchisees who in turn establish an affiliate network they manage and oversee. An average franchisee is expected to establish affiliates numbering into the thousands. An affiliate will promote the services of Skadoit through its daily business usually using banner advertising on a business web site. There are no costs to an affiliate and they are paid a commission for each subscriber of the service of Skadoit. Franchisees are responsible for paying their affiliates from the revenues they earn as a franchisee which is fifty percent of the published subscriber price of $59.98 for standard service and $129.95 for premium service annually. Skadoit retains the other fifty percent. Here’s where it becomes exciting. Skadoit, LLC expects that an average franchisee through its affiliate program will produce upwards to 1,000 subscribers monthly. That means the company is receiving from the network of one franchisee in excess of $34,970 each month. Looking at the income annually, that’s over $419,000. Now for the really good news, this is a residual income that should be realized year after year so long as the subscribers continue to use the services of Skadoit, LLC.

Skadoit, LLC intends to establish thousands of franchises within the United States over the next few years through an aggressive marketing campaign. Most of the marketing will be done through the media of television to accomplish a threefold purpose of 1) branding the name SKADOIT, 2) introducing subscribers to SKADOIT, and 3) attracting quality affiliates.

Once the company has launched the program and begins to be noticed as a significant player in the industry, someone is going to do the numbers and then comes the exit strategy that all investors want to hear about. Someone is going to purchase Skadoit for a large sum of money. What will that be? Skadoit, LLC is expecting the offer to exceed $50 million. That could mean for the investor a return of no less than 10 times. That’s considered a home run in the investment community.

If this sounds interesting enough and you would consider becoming an equity member in Skadoit, LLC then you’ll want to review our memorandum and fill out the investment subscription and reserve your position.

The minimum investment is $10,000 with a total offering of $1,000,000 or 20% of the membership units.

You can learn more about Skadoit on our web site www.skadoit.com or call 904-215-8989 Ext 306.