|
|
Some Information Which Help You To Know Could A Small Business Go Public?
I noticed that it is an universal belief in the small business community that small businesses can't go public until they have significant revenues, say something on the order of $10 to $20 million a year.
This is totally wrong.
I have been taking Small Businesses and Introduced companies public as a consultant above 15 years now. And for 15 years I have been repeatedly asked in different ways " Can a small business similar to ours elevate capital by going public? We only have a million dollars in revenue. Aren't we too small?"
The answer has been and still is "Of course, you can go public. And no, you are not very small."
What is very small?
Well in fact nothing. An organization who is bringing in one million in revenues would be no issue to take public. But it is actually not about your revenues, it is about your business ideas. If you are working on a development stage business plan and you are achieving success, then we can possibly take you public with that alone. If you are making five, ten or twenty thousand a month that is beneficial since it simply shows that you are executing on your business plan.
It has become harder and harder to take an organization public with no revenue and no business plans since the SEC and FINRA are rightfully trying to eradicate micro cap scam, but yes it could still be done. If you have no revenues, however, you will have to have patience, some money in the bank to warranty you can live for some years, and you will have to be making genuine progress on your business plan to show the powers that be that you are a "genuine" company and not only a "sham" set up for micro-cap scam.
If you are a small business and you don't plan to be mom-and-pop forever, then "Going Public" is something you should investigate in the quite early stages. "Public" money is generally a lot cheaper as compared to "private" money.
I have noticed private companies who feel they are very small to "go public" give up half of their company for a small six figure investment. Sometimes companies with revenues in the millions feel they are too small and taking the venture capital route they increase ten or twenty million but finish with merely five to six percent of the company in a few years.
This type of dilution is entirely pointless. The same amount of money could be raised by going public while sustaining 60-65% ownership
Obviously there are drawbacks to going public early too, but many of those have to do with being preyed upon by non-professionals, swindlers, and others who truly don't know what they are doing. If you check out your advisers and get advice and structuring and referrals from professionals who know what they are doing, you can reduce many problems of going public early.
And if you feel you are possibly the next EBay or Google or Microsoft kind of company, going public early on without venture capitalist could be worth billions and billions of dollars.
Bill Gates just owns nearly fourteen percent of Microsoft. Just think how rich he would be if he owned sixty percent!
Now after the "Can I really go public?" type of questions the next set of questions I generally get are "How do I raise capital when I go public? Do I do a merger reverse? " or " I see ads that say - Purchase reverse merger shell - must I do that? " But those are questions for another article. Stay Tuned.
Infusion Treatment For Fibromyalgia: Getting To Know More About It And Find Out If It Is Effective
Fybromyalgia is a Painful, chronic condition that affect many people every year. One of the treatments receiving attention in recent years is infusion treatment for fibromyalgia. But what are infusion treatments and why do they work?
Designing Site With Wordpress Made Really Easy And Does Not Require Any Programing Knowledge
Have you always feel that designing and creating a website is a difficult and near impossible task if you have no programming knowledge at all? Well, this belief may not be true today due to the advancement in this computer era.
Understand The 5 Perfect Carpet Cleaning Methods-5 Steps To Accomplishment
Some rules are Golden, not to ever be forgotten given that they always apply. Always to get used and referred to for the reason that they guide us and remind us of our coordinates and keep us on point, moving in the correct direction.
Know The 5 Significant Methods To Buying The Perfect Portable Scanner Printer
Golden rules are incredibly special rules that a person should always keep in mind and don't forget. They are very important and useful guideposts to keep us on course and going in the appropriate direction.
Useful Information On Figuring Out Where You Can Invest Your Capital
There are several different types of investments, and there are many factors in determining where you should invest your funds.
Electric Devices To Make Your Everyday Life Easier And More Mobile
There are many gadgets that can be used nowadays to make our lives easier and a lot more mobile. These gadgets are now part of our everyday lives and we should take advantage of their use to make our lives a little bit easier.
Safety Suggestions That Parents Can Implement When Setting Up A Trampoline For Your Kids
Installing a trampoline in your yard can be a good source of fun and exercise for your kids. But be sure to take the necessary safety precautions to avoid accidents happening to your children.
|
More Articles
Blogroll
|
