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Cox Padmore Skolnik & Shakarchy LLP remains ready to serve you during the COVID-19 pandemic. We are prepared to provide you with continuous legal service and uninterrupted communication. We are also monitoring the legal impact of COVID-19 and we are available to discuss any questions you may have regarding the CARES Act, insurance coverage issues, including business Interruption insurance, or other issues. Please see below for a list of our practice areas. You may contact us by the usual means of telephone and email, which is encouraged at this time. We will promptly respond. Video conferencing is also available. In all, our firm remains committed to assisting you throughout this evolving period of legal, business, and safety concerns.

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  4.  | Setting up a business plan to attract capital

Setting up a business plan to attract capital

| Nov 6, 2014 | Entrepreneurs

New York businesses enjoy a dazzling array of money-making opportunities. For entrepreneurs who are starting a new business and looking for outside capital, it may be wise to examine their business plan and optimize it for the purposes of attracting equity investments.

Any small business owner should emphasize the important financial items in the business plan, which should present a clear and understandable description of prospective operations. The finances of the business should be straightforwardly presented. Outside investors will always demand to know how the company plans to make money. The ability to generate enough cash flow to pay back a loan on schedule will be of primary importance to any prospective lenders, so income forecasts should be reasonable.

Investors will also need a way to limit liability and to part ways with the company when it is time. Early stage investors such as venture capitalists are especially insistent on these two factors, as their business model requires them to be involved in a large number of different enterprises and they cannot take chances without a clear exit strategy. A business plan should be set up in such a way that institutional investors will be able to end their investment completely and obtain a rate of return that they will find reasonable.

Although certain types of business agreements are relatively straightforward and informal, the majority are intricate financial and legal documents that require strict care and attention to detail. An attorney with experience in business law will likely have a background in the preparation and review of business plans, which are not only used as part of the documentation needed to attract outside capital but also as a set of internal guidelines.

Source: Entrepreneur, “How to Find the Purpose of Your Business Plan“, November 04, 2014

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