Sorry about the abstract answer ... the question itself is sufficiently abstract. Moreover, (with all due respect to the reader) this brief exposition really is intended to help you appropriately answer the question.
If you have stayed with us thus far, we shall assume that you are interested in Strategic Planning and are intending to raise capital to start or expand your business. Therefore, this is also intended to help avoid wasting time (yours and ours), if Fogleman, Rich & Rose is NOT the right answer for you.
Where are you?
There exists a matrix of potential funding objectives toward which any planning effort will naturally be directed. They range in scope from borrowing a small amount of cash from relatives, credit cards, or the bank to provide seed capital for a "garage" start-up ... to major Public Offerings, raising hundreds of millions for global companies. Each type and size has an appropriate level of need for Strategic Planing and Documentation.
The simplest Financial Plan is designed to entice a few of one's fellow country club members (or, family, etc.) to fund a new venture. These can most commonly be supported by a well presented Business Plan, while more complex and detailed Plans specifically seek to demonstrate congruence with the detailed parameters outlined by a particular group of funders.
Beyond that level are several "self underwriting" options commonly supported by some form of "Offering", in which the Company authors a Placement Memorandum or Document under SEC Regulations A or D, and proceeds to solicit funds directly from "qualified" investors, or, at a little higher level, in conjunction with participating specialty Broker/Dealers. The upper range of raising capital is usually accomplished via Initial Public Offering.
Do I Really Need Help?
Raising capital, public or private, debt or equity, can be one of the most challenging and demanding experiences in the life of an entrepreneur. Some have done it easily (seemingly), owing to strong connections in the corporate community or exceptional receptivity of financial markets, but by and large, the process demands the very best from the entrepreneur and his/her organization. Investors just don't part with their money all that easily.
It's reality check time! Everybody needs help.
If you are new to the game, professional help in several areas is mandatory, mostly to avoid legal and accounting pitfalls in transactional structure and to lend credibility and strength to documentation. If you have had (successful) experience, you are likely to raise capital more easily ... (since money comes easiest to those who have a track record and have some) ... however, you are already acutely aware of the need for help and will, without a doubt, get it. (Since the latter group knows most of this, I'll ask them to bear with me for another few minutes.)
What Help is Available
and How Much Does it COST?
The "support services" available to assist in raising capital range as widely as the levels and mechanisms of capitalization. As a "rule-of-thumb", for raises of $1 million to $3 million, expect documentation, legal and accounting fees to run around 2 to 2 ½ % of capital sought, or from $25,000 to about $75,000. For brokered placements, add another 7 to 10% for transaction (or, acquisition) fees.
At the bottom tier are software and books designed to help "write" a Business Plan. The good 'ol do-it-yourself approach ... available for $100 up to about $1,000 ... or, one person "writers" who can help out for $1,000 - $3,000. The results tend to reflect the level of acumen of the preparer, and the approach rarely meets with success above a raise of a few hundred thousand dollars or when used for loan packaging.
At the top are global consulting firms and large legal and accounting firms, structured to handle big transactions and bigger businesses. Even a "modest" level of help will cost $50,000 and up. The service tends to be somewhat impersonal. In addition, transaction fees and up-front costs can get confused and obfuscate "real" planning and documentation costs.
In the middle are smaller, customized Specialty Consulting Firms (that would be us.) As you might suspect, the cost is about in the middle ... from $5,000 to about $25,000.
Speciality Firms have two distinct advantages. First, with multi-disciplinary backgrounds, they frequently provide the quality and professionalism of a "big-six" firm ... and, with much lower overhead, they can do it at half the cost. In addition, without transaction fees (for raising the capital), planning and documentation are delivered at "real value" ... thus, the first big benefit is considerable cost effectiveness.
The second great advantage of a Specialty Firm is, the ability to deliver highly personalized service.
Generally, having a greater affinity with and being more closely attuned to the entrepreneur (than either MBA "types" or "one-man-shows"), the Specialty Firm can develop the kind of unique working relationship that produces finely crafted and innovative documentation, often exceeding both the average entrepreneur's capabilities and the Global Firms' dry, uninspired tombs. If that all sounded like a sales pitch, ... it is!
Fogleman, Rich & Rose is a Premium, Specialized Consulting Service that provides superior Strategic Market Planning, Corporate Financial Planning, & Fundamental Capitalization Documentation, ... delivered with professional style, ... and an extraordinary level of personalism and enthusiasm. We develop, then channel the intensity that can only come from treading the same path as countless American Entrepreneurs.
If you have gotten this far, and would like to consider doing business with us, please send us email. If you would like a few more reasons to consider our service, click here.
Thank you for your interest,
Richard Fogleman
Managing Partner
