You cannot use unlicensed money “finders” to raise capital for your business.

You cannot use unlicensed money “finders” to raise capital for your business and agree to pay them a commission or other success-based compensation if they are successful in raising capital. State and federal security laws only allow licensed broker/dealers to work on commission or success-based compensation. There are no grey areas. I know people violate these security laws and get away with it but that does not make it legal. If you rob a bank and get away with it it does not make bank robbery legal.

You can try fancy titles such as “consulting fees”, “marketing fees, “expense fees” etc. but if the fees are tied to the success of the “finder” in raising capital your dead if the regulators catch you.

The only legal methods to compensate an unlicensed “finder” is a flat fee or hourly fee that is not contingent on the successful closing of any financing. Thats right you must pay even if  the “finder” is not successful.

California Corporations Code Section 25501.5 gives investors the right to rescind their investment and demand their money back when an unlicensed ”finder” acting as a broker/dealer procures their investment in any transaction. Code of Civil Procedure Section 1029.8 allows the court to award attorney’s fees, costs and treble damages up to $10,000.00 In addition, both you and the ” finder” could be subjected to civil and criminal penalities. Regulators can also impose fines and prohibit you from offering securities in future transaction.

In an article written by John P. Cleary, Esq. June 2009 he states ”Over the past 18 months, the SEC has actively pursued investigation and enforcement actions for violations of the broker/dealer laws as they relate to unregistered finders.” Investors are also bringing their own legal actions against issuers to rescind their investments.

If your raising capital for your business follow the law. You either pay for the cost of raising capital in advance regardless of the outcome or you pay a great deal later on when the SEC comes knocking on your door.

The Art of Raising Capital

Raising capital is a profession and should only be conducted by people who have spent years developing relationships with accredited investors. Investors place their capital with people they know and trust. Not strangers who send unsolicited business plans, emails, executive summaries or post business plan on some website. Investors do not invest their money in business plans. They invest in people. In fact most investors never read a business plan despite what you hear and read. This is how it works.

If you are trying to raisie capital you need to retain the services of an attorney, CPA or other financial professionals and allow them to assist you in the preparation of your investment materials along the lines their investors want to see  and then let them make an introduction to their investors. Real investors want deals sent to them by their trusted advisors. Then they know the deal has been check out and proper Due Diligence completed. They trust the deal. Now its up to you to meet with the investor and get the investor to trust and believe in you. Raising capital is all about retaitionships. Not business plans.

VC firms receive 2,000 business plans per year. They look at 10 and fund 2. The 2 they fund are usually referred to them by attorneys, CPA’s and financial consultants they have worked with in the past. You do the math on your chances of successfully raising capital without the proper introductions.

Angle investors fund 1 out of 300 deals presented to them. 90% of entrepreneures are not successful in raising capital outside a small round of seed capital from friends and family.

Most entrepreneurs seeking to raise capital use unlicensed money “finders” in violation of state and federal security laws to source out investors.

Raising capital is not easy. Save yourself alot of time, energy and money. Retain a professional. Its not a guarantee you will be successful( there are no guarantees) but you will increase your chances of success.

Fox News Happy Hour host stated “create jobs save the economy”

Jobs will not jump start this or any economy. Capital is the driving force to bring real growth. Without capital you cannot build plants, office buildings, purchase material to make goods and sell services. All of which you need before you can hire employees and create jobs. That is why this is going to be a jobless recovery. Job creation is the last compoent in building a strong economy in todays world. Capital, capital capital!

I watch Fox Business News more for humor than real insight into problem solving. It’s a young network with even younger program host. It’s too bad youth is wasted on the young. When they get more wrinkles and grey hair maybe real knowledge and insight will be as important to them as the way they look on camera.

Penny stocks have the best chance of a large return on a small investment. Even with the risk.

If you are trying to make sense of this stock  market don’t waste your time. Instead spend your time looking at overlooked and undervalued penny stocks. Penny stocks are defined as any stock trading at $5.00 or less. These stocks carry alot of risk but also provide the best chance of huge gains for very littie money.

Forget about what the so-called experts say about penny stocks.Look where their advise took blue chip stocks. Use your own brain and research penny stocks in all sectors. Look at which ones are beinging promoted and who is doing the promotions. Look at their track record in taking stocks from current price/volume levels to new price/volume levels in short time frame (3 to 6 weeks). These stocks are not buy and hold in any market. Don’t make the mistake of falling in love with the stocks. Get in and get out with a profit.

You can find stocks trading for .01 and move to .10 cents on your own. You can invest $1,000.00 and purchase alot of stock at these levels. More than you can purchase google at its current price. Yes I know penny stocks are subject to manipulation, speculation and no real valuation. That’s where the potential profit comes in.  I got involed with taking a company public a few years ago at .06 cents per share six months later it was trading at $3.50 per share.

Remember at one point in time Microsoft was a penny stock. Go out and learn how to make money in any market. Follow your trend. Set your own charts. Fumble with your own fundamentals.

You can do more than pay higher prices at the gas pump. Let higher oil prices work for you.

Independent oil and gas companies can make money even when oil is $30.00 per barrel. Lucas Energy stock symbol LEI latest research report states they have 2.2 million barrels of oil in Proved Reserves. If this were valued at just $20.00 per barrel, Lucas stock would be valued at $4.33 per share. They are cash flow positive, increased production 7% over last year and increased revenue by $302,000 between 2008 and 2009.

The have 26 wells producing 150 barrels of oil per day. In addition, LEI controls 16 shut-in or plugged well bores. The Company owns producing oil and natural gas wells located throughout Southwest Texas with approximately 15,000 acres of land in 4 counties.

The LEI executive management team has over 110 years collective experience in the oil and gas energy sector.

Energy sector stocks such as Lucas Energy should be on your list of stocks to watch as the price of oil goes up so does their cash flow and potentially their stock value. Visit www.lucasenergy.com

You cannot Save your way into retirement. You must Learn how to Earn.

By now you have realized that saving money in a 401K, IRA, savings account, CD’s or stuffing it into a matress will not work if you are looking to retire and live the life you have been use to.

Most people have lost as much as 60% of the value of their retirement savings(401K, IRA,etc.) and it will take them much longer to “save” their way back to a level they will be comfortable with for a healthy retirement.

You cannot “save” your way to a healthy retirement. You need to Learn how to Earn money in order to have a successful, comfortable, healthy and productive retirement(assuming you want to retire).

Kiplinger Newsletter cited some very startling facts awhile back. If you are 35 years old and want to retire at age 65 with $2 million in the bank you need to save $1,300.00 per month for the next 30 years. If you are 45 with $100,000.00 saved you will need to put aside $3,000.00 per month to have $2 million. If you are age 55 with $100,000.00 saved you will need to put aside over $10,000.00 per month to have $2 million for retirement.

Again, you cannot save your way to retirement. What can you do? Find an IDEA that turns into a COMPANY that issues STOCK. What? Look at Bill Gates, Warren Buffet, Steven Jobs. They did not accumlate their wealth by saving money in a 401K, IRA, CD’s or Mutual Fund. They developed an IDEA, turned it into a COMPANY and issued STOCK. They earned their wealth and they have money working for them instead of them working for money.

You need to stop looking for a job, a paycheck and for some one else to take care of you and start taking your financial well -being into your own hands. Start a business. Yes even in today’s climate you can still start a business, grow a business and raise capital to take your business to a new level of success.

Stop relying on financial planners and other so-called experts that are giving you advise for a commission or a fee. If they are not already a millionaire in their own write why would you want to take their advise on how to grow your money.

It is obvious now just by ready the newspapers and listening to news reports how everyone who trusted their money to some else has faired into today’s market.

Start taking responsibility for your own financial destiny. If you are unemployed don’t look for another job just to end up getting fired or laid off again.

As an example, if you have been employed on Wall Street or any where for 5 years or longer you should have made enough contacts to be able to start your own business in that same space and be successful.

Then take your IDEA  turn it into a COMPANY  take it public an issue STOCK. This is the path to true wealth. Money isn’t everything some people say but this comment usually comes from people who are setting on a pile of cash. Make that statement to some one who has lost their job, their home, their life and see what their response is.

Learn how to earn and you will never be without the opportunity to take care of yourself and your family.

In the ’60’s we use to say “if you are not part of the solution your part of the problem”

Get off your butt and start contributing to solutions for the capital market, ecomony and business environment. You cannot depend on political solutions to solve business problems. Politicians are just pimping & pandering to the political whim of the popular “news” to get re-elected. They offer no real solutions to the financial problems faced by many  Americans in this current economic crisis.

If you are sitting in your local bar, coffee shop, salon, mall or walking in circles on some useless picket line protesting taxes and Wall Street bailouts you are part of the problem. Not the solution.

Start your own business!. If you have been fired, laid off or “downsized” use your professional experience and contact in your industry that you have developed over the years and start your own business.

If you worked in the financial industry for 5 years or longer and find yourself out of a job start your own business. You should have made enough connections in your field to be able to open an office or work out of your home as a financial consultant and compete in the new economy. Stop looking for someone else to give you a paycheck at the end of the week. Get out there and do something to take control of you financial destiny.

There are two types of people in this NEW world winners and every one else. If you cannot pick yourself up and get into the first group don’t expect someone to do it for you. You know what the problems are. Find the solutions.

AIG, Citi Group, CURV Entertainment, Ford and GM are all penny stocks.

Penny stocks are defined as stocks trading under $5.00. There are risk associated with penny stocks as the so-called experts say. I say look where the experts got us with Blue Chip stocks. You need to take a look at your investment concepts and take control of where your investment capital goes.

Financial planners and advisors do not have a crystal ball to pick winners. If they did they would not be peddling financial products for a commission. They would all be rich.

You need to look at alternative investments such as penny stocks or over-the-counter stocks that carry risk but also carry the potential for greater upside potential. I am not saying to cash in what is left of your 401k and invest in penny stocks. I am saying if you have some discretionary money ckeck out penny stocks. I have and I have done very well.

CURV Entertainment, stock symbol CEGO, creates original music, movies and video content for viewing on Smartphones, such as iPhones and BlackBerries. Nokia, the largest mobile phone manufacturer predicts that in the next 5 years 25% of the world’s entertainment will be viewed on Smartphones.

AIG can and has gone up 300% with just someone talking about AIG getting more government money.

Citi Group hit .96 cents on Thrusday and went up to $1.06 on Friday. Not a big move but it went in the right direction.

I have invested in penny stocks where the price was 6 cents and went to $3.50 in 6 months. Then back to 80 cents. The key is research, luck, a tolarance for calculated risk and knowing when to get out of the stock.

No crystal ball. No magic bullets. Just a willingness to take a different path on your quest to regaining your wealth.

Publicly traded companies raise capital & increase shareholder value with Let’s Talk Stock financial television show

There are 15,000 publicly traded companies in the U.S. alone. In order to stand out in the crowd and have investors purchase your stock you need to be seen and heard.

Let’s Talk  Stock is a internet television show that provides you with national media exposure 24/7 on its websites and affiliate websites.

Let’s Talk Stock will come to your location and film a 5 minute corporate video with your CEO, CFO discussing your company, products , services and future business development plans.

This corporate video will be made available to investment bankers, investors, shareholders , broker/dealers and investor relation firms.

Let’s Talk Stock provides you a national forum to showcase your public company and develop retail support for your stock. Press releases alone will not do this especially if no one know who you are and there is no following for your stock. Visit www.letstalkstock.com or contact Michael N. Brette,J.D., Executive Producer at mikebrette@aol.com for details and cost.

Increase shareholder value, raise capital and develop retail support for your stock with an appearance on Let’s Talk Stock national financial television network.

Succeed in troubled econominc times with expert business advise.

Michael N. Brette,J.D. advises clients on a wide variety of transactional business matters from start-up counseling, reverse mergers, stock loans, venture capital, debt/equity structures, S-1 Registrations, Form 10 filings, hedge funds, private equity, licensing agreement, royalty financing, monetizing intellectual property, venture debt financing, corporate formation and capital formation.

Mr. Brette is a Founding Member of the Sourthern California Investment Association a 200 members-only association of investment bankers, private investors, venture capitalist, hedge funds and private equity firms that have funded $100 million in transactions every year since 2000.

Mr. Brette has his Juris Doctor (Law Degree) for 30 years. He has published two books Raising Capital For Your Business and Asset Protection Planning (Amazon.com). He is listed in Who’s Who in the World and Whos’ Who in Industry & Finance.

Mr. Brette has invested millions of dollars in emerging growth companies and assisted in raising millions more.

Increase your chances for success in your business venture with expert advise from someone who has been there. Contact Michael N. Brette,J.D. at mikebrette@aol.com