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Is It Viable That A Small Business Can Go Public?
I noticed that it is a common belief in the small business community that small businesses can't go public until they have important revenues, say something on the order of $10 to $20 million a year.
This is totally wrong.
I have been taking Small Businesses and Start-Up companies public as a consultant above 15 years now. And for 15 years I have been repeatedly asked in various ways " Can a small business similar to ours raise capital by going public? We simply have a million dollars in revenue. Aren't we too small?"
The answer has been and still is "Obviously, you can go public. And no, you are not too small."
What is very small?
Well actually nothing. An organization who is bringing in one million in revenues would be no problem to take public. But it is truly not about your revenues, it is about your business notions. If you are working on a development stage business plan and you are making progress, then we can possibly take you public with that alone. If you are making five, ten or twenty thousand a month that is helpful since it just signifies 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 operations as the SEC and FINRA are rightfully trying to eliminate micro cap scam, but yes it can still be accomplished. If you have no revenues, however, you will have to have patience, some money in the bank to warranty you can survive 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 "real" company and not only a "sham" set up for micro-cap fraud.
If you are a small business and you don't think to be mom-and-pop forever, then "Going Public" is something you should inspect in the very early stages. "Public" money is normally a lot cheaper than "private" money.
I have noticed private companies who feel they are too small to "go public" give up half of their company for a small six figure investment. At times companies with revenues in the millions feel they are too small and taking the venture capital route they increase ten or twenty million but end up with just five to six percent of the company in a few years.
This kind of dilution is entirely unnecessary. The similar amount of money could be raised by going public while sustaining 60-65% ownership
Of course there are drawbacks to going public early too, but most of those have to do with being preyed upon by non-professionals, swindlers, and others who really don't know what they are doing. If you look into 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 potentially the next EBay or Google or Microsoft sort of company, going public early on without venture capitalist could be worth billions and billions of dollars.
Bill Gates only owns nearly fourteen percent of Microsoft. Imagine how rich he would be if he owned sixty percent!
Now after the "Can I truly go public?" type of questions the next set of questions I normally get are "How do I raise capital when I go public? Do I do a merger reverse? " or " I see ads that say - Buy reverse merger shell - must I do that? " But those are questions for another article. Stay Tuned.
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This is totally wrong.
I have been taking Small Businesses and Start-Up companies public as a consultant above 15 years now. And for 15 years I have been repeatedly asked in various ways " Can a small business similar to ours raise capital by going public? We simply have a million dollars in revenue. Aren't we too small?"
The answer has been and still is "Obviously, you can go public. And no, you are not too small."
What is very small?
Well actually nothing. An organization who is bringing in one million in revenues would be no problem to take public. But it is truly not about your revenues, it is about your business notions. If you are working on a development stage business plan and you are making progress, then we can possibly take you public with that alone. If you are making five, ten or twenty thousand a month that is helpful since it just signifies 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 operations as the SEC and FINRA are rightfully trying to eliminate micro cap scam, but yes it can still be accomplished. If you have no revenues, however, you will have to have patience, some money in the bank to warranty you can survive 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 "real" company and not only a "sham" set up for micro-cap fraud.
If you are a small business and you don't think to be mom-and-pop forever, then "Going Public" is something you should inspect in the very early stages. "Public" money is normally a lot cheaper than "private" money.
I have noticed private companies who feel they are too small to "go public" give up half of their company for a small six figure investment. At times companies with revenues in the millions feel they are too small and taking the venture capital route they increase ten or twenty million but end up with just five to six percent of the company in a few years.
This kind of dilution is entirely unnecessary. The similar amount of money could be raised by going public while sustaining 60-65% ownership
Of course there are drawbacks to going public early too, but most of those have to do with being preyed upon by non-professionals, swindlers, and others who really don't know what they are doing. If you look into 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 potentially the next EBay or Google or Microsoft sort of company, going public early on without venture capitalist could be worth billions and billions of dollars.
Bill Gates only owns nearly fourteen percent of Microsoft. Imagine how rich he would be if he owned sixty percent!
Now after the "Can I truly go public?" type of questions the next set of questions I normally get are "How do I raise capital when I go public? Do I do a merger reverse? " or " I see ads that say - Buy reverse merger shell - must I do that? " But those are questions for another article. Stay Tuned.
Choosing The Right CMS For Your Small Business
Drupal is the CMS of choice for medium-sized and enterprise-level websites and has been voted the Top CMS in the World two years running. That's why Inseven Designs has made Drupal! Its top choice for clients.
Some Thrive Under Stress While Others Do Not - Learn How To Control Your Own Stress For An Increasingly Productive Life-Style
Since we can not remove stress or causes from our lives, it is best that we learn how to manage it. There are several ways you can manage stress with methods ranging from the exotic to the simplistic.
Why Is The Body Filled With Toxins And Just How A Detox Menu Can Benefit You?
If you live in a city, have a desk job (and a stressful one at that), drive an hour at least each day, and don't do exercise, then you probably are forcing your liver to do extra work trying to eliminate all that excess toxins.
First Time Home Buyer - Doing Away With The Enigma Of Becoming A First Time Home Owner - Part 1
Loan contingency is the period of time the seller gives you for formal loan approval. Pre-approval tells you how much home you can afford. The contract period is time in which everything must be completed. You and the seller agree on the time needed to complete all home inspection procedures.
What You Definitely Need To Discover Concerning Tiffany Taylor And Guy Gets Girl
Is Guy Gets Girl a Scam? Is Tiffany Taylor a Scam? If you are a guy looking for a system that will work stand alone, don't waste your money on this one. THIS IS A SCAM! = 1
Review: Metroid: Other M - A New Video Game Which Might Be A Great Christmas Gift Idea For 2010
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Used Bass Fishing Boats - Aspects To Consider When Buying A Used Bass Fishing Boat
Individuals who are serious about fishing know how important it is to have a good boat that will enable them move around the water quickly and easily. This is precisely why bass boats are so popular with anglers.
If You Are Shopping For The Perfect Present For Her, Look For Coach Purses For Sale. They Make A Nice Holiday Present
Coach purses are a high-quality, stylish handbag, that she most likely covets. If you want to buy a Coach bag for someone for the upcoming holiday season, you have many different styles to choose from.