How to Raffle a Business
Some people maybe wondering how to raffle a business for profit, and this is a great way to have some fun while trying to get rid of a business. One may wonder why a business owner would raffle off a business in the first place, and that answer varies widely upon the businesses, which choose to hold a raffle.
Instructions
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Raffling off your business begins with an inquiry to State Attorney General's office as the first step to see if this venture is even possible. Checking with the state attorney’s office allows you to figure out the laws concerning raffles within your state.
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Checking into your business by-laws to see if this it allowed is the next step, followed by the lawyers to see if this is legal. Then check with the company’s board of directors to see if this is a doable project, be prepared to wait in case a vote is required.
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Determining if you will raffle off the whole business for the winner of the raffle or have a few first prizes where all first place winners receive an equal share of the company is next. This way one person does not control the company, but a group of people who will run the company in the best interest of everyone involved.
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Having a fund rising company or a person in the community who has run successful big-ticket raffle items can help you. They can help you determine marketing strategies, which will need to be approved by a lawyer.
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Figuring out how many tickets you want to sell to reach your goal is essential before you have the tickets printed up. For example if you want to raffle off the business for 1 million dollars, you could sell 10 tickets for 100,000 dollars a piece, or 50 tickets for 20,000 dollars a piece. The cheaper you sell the raffle tickets for the more excitement you will raise, and people will be scrambling to purchase a ticket for your raffle.
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Tips & Warnings
Make sure your marketing materials state that if you do not see the required amount of tickets the raffle is revoked and money refunded.
You should also state that the winner pays all state, federal and local taxes on the business.
Check with your lawyer and the state attorney general’s office to make sure your idea of a raffle will not land you in legal trouble down the road.
