The entire point of a business and for those seeking to raise capital is to make a return, i.e. to make money. Your prospectus, from the cover page, should convey a message that you can generate a profit for your investors. It is obvious that any business plan or prospectus shows that the company can turn a profit, otherwise who would invest in a company that shows it will not make money. From the outset of the prospectus, you will need to convey that you can (honestly) generate a return on investment. Services or products that may generate small amounts of revenue may be viewed as a hindrance to others that grenade much more. Focus on the core, money making products and services and your prospectus will be that much stronger.

In addition to showing you can turn a profit, you will want to keep your prospectus, no matter the length, flowing. In most cases the simpler the prospectus the easier it is to convey your message. By simpler we mean staying on message, avoiding tangential, non-essential details and clearly explaining the product and services, and the market and the risk factors in a straight forward fashion. A good bulk of investors who will review your prospectus will jump from one section to another, often skipping information to look at section he/she finds more important. Because of this you will want to create a prospectus that is easy too ready and from the first paragraph of any section convey the general idea of the subsequent information. You will need to factor in your analysis that an investor’s attention may only be grabbed in the first few lines of any section and it is therefore imperative that you grab their attention immediately.