b'3. Select Your Business Modeluntil your business model actually generates cash flow. If you return capi-tal before that occurs, such as from an excess cash reserve account, it must be characterized as a return of capital and not a return on investment. Generally, you will be obligated to return capital pro rata, unless you have stated in your offering documents that you will return capital in the order received or in reverse order. This means it will be divided among all inves-tors in proportion to their capital contributions or percentage interests. CONSIDER YOUR OPTIONS Private investor funds generally come from one or more of the sources provided below: Borrowing from individual investorsA joint venture with active partnersPooling funds from passive investors/syndicationDepending on the business model you select, different laws will apply. The applicable laws will depend on how you raise the money and what you are doing with it.25'