How to Raise $1 Million in a Year

By Nancy Mann Jackson of Entrepreneur.com



Venture capital and IPO options for small businesses may have all but disappeared, but Steve Trussell is still excited by his chances to raise up to $1 million this year to fund his growth plan. Like other entrepreneurs eschewing normal avenues for raising capital, Trussell headed to the Strip -- Las Vegas Boulevard.

But the Dallas-based CEO wasn't hoping for a lucky pull at a slot machine. He took luck into his own hands by registering for the Nevada state registered offering and looking for investors who want fresh, promising opportunities to sink their money into.

Available to any business in the world, the NSRO allows companies to legally register and distribute company stock shares to Nevada residents and qualified visitors. Small businesses are allowed to offer 1 million shares at $1 per share over a year's time, making it possible to raise up to $1 million in just a few months. These days, there are few other options with such possibility.

"It's less expensive than doing bank financing," says Ed Apenbrink, who retired last year as Nevada's director of securities registration and licensing. "It's more of a sure thing in the sense that banks don't seem to be lending these days."

With limited funding options, dozens of entrepreneurs are making their way to Nevada and adding securities registration and sales to their skill sets. Trussell plans to expand his company, State Continuing Education Inc., which provides online education for state-licensed professionals, chiefly through acquisitions. He went to Nevada last year to raise the money necessary to fund his plan.