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Entrepreneur Education

Ask yourself: are you prepared to offer securities?

Any company may issue securities. The key question is whether it makes sense to offer securities at this point in your company’s business plan. A good business plan will tell you when a securities offering is appropriate. You should ask yourself:
  • Are you ready to give up – PERMANENTLY -- part of your ownership to investors (people you may know or complete strangers) who buy stock?

  • Can you devote time or pay outside experts (such as lawyers and accountants) to structure the offering and draft the required paperwork?

  • Can you take time away from running your business to find and solicit potential investors?
As a small-business owner, you should be realistic in your plans for selling securities. Your business plan should concentrate on the amount of money your business needs to achieve reasonable and reachable goals. People tend to be more willing to invest in a company that has a clear focus on its objectives and how it will achieve them.

We encourage representatives of prospective securities issuers to contact staff for further assistance. To help with your questions, you can call us at (717) 787-1854 or toll free in Pennsylvania at 1-800-PA-BANKS (800-722-2657).