I find it to be 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 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 constantly asked in various ways " Can a small business like ours increase capital by going public? We simply have a million dollars in revenue. Aren't we too small?"
The response has been and still is "Of course, you can go public. And no, you are not very small."
What is too small?
Fine actually nothing. A company 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 concerning your business ideas. 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 every month that is helpful as it just signifies that you are executing on your business plan.
It has become harder and harder to take a company public with no revenue and no business plans because the SEC and FINRA are legally trying to eliminate micro cap fraud, 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 guarantee you can live for a couple of years, and you will have to be making genuine development on your business plan to show the powers that be that you are a "real" company and not just 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 investigate in the quite early stages. "Public" money is usually a lot economical than "private" money.
I have seen 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 raise ten or twenty million but finish with only five to six percent of the company in some years.
This kind of dilution is totally needless. The similar amount of money could be raised by going public while maintaining 60-65% ownership
Obviously there are downsides to going public early as well, but most of those have to do with being preyed upon by non-professionals, fraudsters, 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 eliminate most of the downside of going public early.
And if you feel you are possibly the next EBay or Google or Microsoft type of company, going public early on without venture capitalist may be worth billions and billions of dollars.
Bill Gates only owns about 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 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 - should I do that? " But those are queries for another article. Stay Tuned.
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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 constantly asked in various ways " Can a small business like ours increase capital by going public? We simply have a million dollars in revenue. Aren't we too small?"
The response has been and still is "Of course, you can go public. And no, you are not very small."
What is too small?
Fine actually nothing. A company 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 concerning your business ideas. 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 every month that is helpful as it just signifies that you are executing on your business plan.
It has become harder and harder to take a company public with no revenue and no business plans because the SEC and FINRA are legally trying to eliminate micro cap fraud, 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 guarantee you can live for a couple of years, and you will have to be making genuine development on your business plan to show the powers that be that you are a "real" company and not just 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 investigate in the quite early stages. "Public" money is usually a lot economical than "private" money.
I have seen 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 raise ten or twenty million but finish with only five to six percent of the company in some years.
This kind of dilution is totally needless. The similar amount of money could be raised by going public while maintaining 60-65% ownership
Obviously there are downsides to going public early as well, but most of those have to do with being preyed upon by non-professionals, fraudsters, 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 eliminate most of the downside of going public early.
And if you feel you are possibly the next EBay or Google or Microsoft type of company, going public early on without venture capitalist may be worth billions and billions of dollars.
Bill Gates only owns about 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 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 - should I do that? " But those are queries for another article. Stay Tuned.
Avoid Trips To The Post Office And Print Your Own Postage Stamps While Also Saving Money
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Constructing Your Own Barn Is Easy With Monitor Barn Plans!
Most people think that they can't build a substantial monitor barn in which their animals can be housed. However, this isn't the case as there are plenty of good quality monitor barn plans available that they can use to easily build this kind of structure themselves.
Learn Tips To Raise HDL Cholesterol Ranges
Many people these days have problems with bad cholesterol. This article will show you how to lower the bad one and raise your good cholesterol levels for better health.
Freight Forwarding Service - What Precisely Is This?
This freight forwarding service is facilitated by a freight forwarder, the third party provider which plans and schedules the logistics, as well as process shipment from one location to another. This forwarder sends goods and services through airplane, ship, train, truck or other vessels.
Checkout The Latest News About Satellite Cell Phones - GlobaFone
Satellite phones have repeatedly proven themselves invaluable to emergency responders, business continuity managers and planners and others who need reliable communications in places where no other systems exist.
$0 To $1 Million - Realize It Using Opt-In Page
If you sell a product or service, this is for you. If you don't, please feel free to let other people who you know that do sell products or services online. It could make the difference between their doing OK and their doing excellent.
Will Computer Software Escrow Agreements Aid Your Company And Protect Your Well Earned Resources?
Just as in regular transactions a third party holds something of value from two or more parties until certain conditions are met, so too does a software escrow agent.