Though only 5 – 10% of all business started usually go public, i feel i should still write about the process of taking a company public. You might feel this article is irrelevant but bear in mind that someday, you might decide to take your company public.
Instead of waiting for that time to learn about the process of taking a company public, i will advise you learn it now.
Now for those who might someday be taking their company public, join me as i share with you seven advantages of taking a company public.
1. The first advantage of forming a public corporation is this; your company will have access to unlimited funds. This is because a public company has the ability to raise a large amount of capital from small investors and big businesses.
2. Your company can now be traded on the floor of the stock exchange thereby giving both small and big investors access to your company.
3. Investors are more comfortable investing in public companies than private companies due to the professionalism of the management.
4. Public companies have the right to sell shares to the public and the shareholders have limited liability. Therefore, the risk is spread over a large number of people.
5. Taking your company public will enable you grow and expand your business with ease. Since you have access to unlimited funds, expansion will be a piece of cake.
6. Public companies are known for delegation of managerial functions. When you go public, you will have enough working capital to employ the best in terms of experience, professionalism and skill.
7. Taking a company public is like selling your business without giving up control or ownership of the business. It is like giving the public a chance to buy into your business and share in the profits while still maintaining ownership.
At this point, i rest my pen. Till we meet again.
