Remember, you are involved in accounting, legal, regulatory and business conventions that may be unfamiliar to you. If you don't learn what's necessary or have adequate help, chances are good that you'll be bogged down and ultimately unsuccessful.

Attempting a public offering before the company is ready.

Your need for capital may unduly influence your judgment concerning your firm's viability. Is your company really ready to grow? Have the problems been ironed out? - Can you be sure that new shareholders have an excellent chance to profit, and don't have to take unreasonable gambles? Are there steps you need to take before risking the money of the investing public?

Misunderstanding the costs involved.

Think seriously of the myriad of tasks and inevitable costs ahead of you. Everything is expensive, often two or three times more than what you may have estimated. You have costs for a business plan, usually an audit, legal review for filing, filing fees, printing and postage, marketing costs, and literally dozens of other purchases you will make Don't forget your own time (this can often outweigh all other factors).

Starting the money raising project at the wrong end.

If you feel that each step in the process is discrete and naturally falls after the other, you've already made a major mistake. Consideration of just who may choose to purchase your shares needs to be a continuing question for you to answer. Don't go through the costly process of registration unless you're pretty sure that your securities are marketable. You may wish to discuss this issue with a broker/dealer or a professional marketing company. This caveat operates for all specialties that you may employ. Don't distance your accountants from your attorneys or either group from your marketing people.

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