Some Information Which Aid You To Know Can 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 every year.
This is totally false.
I have been taking Small Businesses and Introduced companies public as a consultant for over 15 years now. And for 15 years I have been frequently asked in diverse ways " Can a small business akin to ours elevate capital by going public? We only have a million dollars in revenue. Aren't we quite small?"
The answer has been and still is "Yes, you can go public. And no, you are not very small."
What is too small?
Fine truly nothing. An organization who is bringing in one million in revenues would be no issue to take public. But it is actually not relating to your revenues, it is about your business plan. If you are working on a development stage business plan and you are achieving success, then we can probably take you public with that alone. If you are making five, ten or twenty thousand per month that is useful because it simply shows that you are implementing on your business plan.
It has become harder and harder to take a company public with no revenue and no business maneuver because the SEC and FINRA are legally trying to eradicate micro cap scam, but yes it could still be done. If you have no revenues, although, you will have to have patience, some money in the bank to guarantee you can live for a couple of years, and you will have to be making genuine improvement on your business plan to show the powers that be that you are a "true" company and not simply a "sham" set up for micro-cap scam.
If you are a small business and you don't plan to be mom-and-pop always, then "Going Public" is something you should look into in the quite early stages. "Public" money is usually a lot economical 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 very small and taking the venture capital route they raise ten or twenty million but finish with only five to six percent of the company in some years.
This sort of dilution is completely pointless. The same amount of money can be raised by going public while maintaining 60-65% ownership
Obviously there are downsides to going public early also, 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 suggestion and structuring and referrals from professionals who know what they are doing, you can eliminate most of the downside of going public early.
And if you feel you are probably the next EBay or Google or Microsoft type of company, going public early on without venture capitalist might be worth billions and billions of dollars.
Bill Gates simply owns almost fourteen percent of Microsoft. Just think how rich he would be if he owned sixty percent!
Now after the "Can I really go public?" kind of questions the next set of questions I usually 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 - should I do that? " But those are queries for another article. Stay Tuned.
How To Deal With Sickly Goldfish - And Things To Consider
A goldfish is usually an active and lively fish. If you find your goldfish just floating lazily, this may be an indication that something is not right. Immediate action should be taken.
A Few Very Vital Detox Diet Recommendations - Drink Your Weight In Water
Water is crucial to health, and especially so when you're following a detox diet. By drinking plenty of water you help you body flush out toxins. You'll also be surprised at how much your energy levels increase. All from drinking water.
The Underlying Troubles With Chronic Back Pain Remedy: Organic Treatments Might Be Helpful
Back pain needs to be taken a great deal more seriously than most people, including many in the medical profession, believe. Intermittent lower back pain can be very debilitating. Finally, there is hope in the form of holistic back pain treatments.
Why Must You Buy Water Pumping Windmills?
A windmill is not only used to produce cheap electricity but it is also used to pump water in farms and lands. You can use the wind to pump the water from deep beneath the earth's surface and pump it up to provide water for the crops and for your family.
LED Lighting- New Image To Your House
For a number of years now conventional LEDs have been used for displays and to provide indication. The benefits that are inherent to LED lighting technology is not only well known but also well documented relating to both to the power savings they offer and how easy these are to maintain.
Most Risky Foodstuffs That Can Result In Impotence: It's Your Time To Change Your Diet
Everything that you eat on a daily basis has some effect on your mind, and body. What this boils down to is option, and education. When you choose to take control and live differently, educate yourself with the information we have provided and than use it.
Checkout The Most Recent News Regarding Inmarsat And ViaSat To Produce New Broadband Worldwide Area Network Terminal For Military Defense.
Targeted specifically at the U.S. and NATO markets, the ViaSat Integrated Terminal will combine Inmarsat's IP-based Broadband Global Area Network (BGAN) technology with ViaSat AltaSec(R) IP inline encryption equipment to create a portable, ruggedized BGAN user terminal capable of uplinking IP data fully compliant
More Readings
Resources
|
