Going Public Sale: On Funding A Growing Business



From rags to riches! When your business success was a blast and you are thinking of a big office, branches, manufacturing plants or distribution outlets, and purchase more equipment, a large amount of money is needed.

Sizeable sums of money for marketing may be needed to meet increased competition. For instance, you would like to transfer your card printing company to a bigger office that would accommodate your large business cards printing equipment. You have to advertise for the new office for your customers. And since you have transferred to a new unknown place, and worse, you are now, again, unknown to your customers, you should seek your advertising firm to help you with this. And as your card printing business grows, you will be lined up and compared to other similar businesses with your level.

The large amount of money you will need for expansion, advertising, among others, are usually sought from such sources as public sale of stock or merger. You can cut the price of your business cards that are not sold and other cards that has plenty of stocks left. You can sell it with 50 percent off the price; or you can also use the buy-one-get-one-free scheme.

Public sale of stock is also a viable alternative for raising capital when the business has a well established track record. The public equity offering sometimes has the dual purpose of raising additional funds for the company and enabling original investors to realize a financial gain by selling a portion of their shares. The expenses involved in