Tasko Pal
Heron Corporation
   |
Posted - 2009.01.30 02:21:00 -
[1]
 Originally by: BruisedMoon
Originally by: cosmoray
you want to run a business, come up with a business plan.
My question was how to successfully make a business publicly traded not how to run a business... thanks for your time, but was it really worth it to post such obvious nonsense?
Cosmoray is right. Let me remind you. You said in your original post:
Quote:
What I am curious is what would be the first logical step to do this?
The business plan is the first logical step. My impression is that you have not yet done this. The thing to remember here is that successful businesses (and for that matter successful scams) come up with a viable plan that the people running the business can execute and which the investors can understand and support.
I won't pretend to fully understand the process of making an IPO, but here's some observations that I think would be useful. Keep in mind that a public IPO in some ways is a last resort for a business. For example, if you can fund the business yourself, then you don't need to mess with the IPO at all. There need not be another owner. The next best thing is to get some money from allies and work together. Generally, you know each other and it's much less likely that someone will screw the rest. The next level is to borrow money either from a bank or rich neutral. The terms of the loan depend on your rep and connections. Often you need to provide collateral.
Finally, is the IPO or bond issue. You get money from a bunch of strangers. You issue reports and other communications with them. You deal with complications like a big investor wanting to bail or pirates (who might have a spy among your investors) attacking your business because of its public nature. It's a lot of hassle.
That means that you need to have a solid business idea that is worth that extra hassle. That means good return on investment and you should know a lot about the market you're trying to break into with the IPO money. I think if you came to the IPO market to expand a successful business, that would give you the best terms on an IPO. People would see that you're serious and they're much more likely to part with isk under those circumstances.
|