If You Do Not Have Money in the Deal, Stop Wasting Everyone's Time

May 5, 2012 - PRLog -- At Wert-Berater, Inc. we are often contacted by people who have great ideas, yet no money.  At times they ask us to raise money for them.

In our business, we provide third party reporting in the form of Feasibility Studies.  The truth is that not all projects are feasible.  

One of the items that make a project infeasible is the lack of available funding from the project sponsor (equity) and or lack of lenders, partly a result of lack of equity.

Money is cash in the deal.  I spoke to a wanna be developer yesterday who told me that they had a $5.5M project.  I asked how much money was in the deal so far.  He stated "about $2.5 million".  I replied, "Great".  Then I asked, "How much of that equity in the deal is cash?"

The reply was "Well, some of it.  But most of it is my time".  Sorry, wrong answer.  Your time is not part of a tangible balance sheet.  

How is money raised to develop a project?  It can begin with your personal resources,  friends and family, or spending the time and money to comply legally to sell shares in a company.

However, if you are seeking to raise capital at any stage, a feasibility study from a credible third party such as Wert-Berater, Inc. is important.

How to pay for a feasibility study?  Again, from your own resources, friends and family.  The document is not free and cannot be provided subject to you raising money.

The provider of the feasibility study must not have a financial interest in the project on any level.

Ideas are wonderful events.  However, if you are seeking to promote a project and do not have money to invest, you are wasting not only your own time, but the time of everyone you contact.