Rich Dad Advice On Taking A Business Public

What is the cost of taking a company public?

Taking a business public is as demanding as founding a startup from scratch.Infact it costs more money than funding a start up.This blog will explore the things you need to know as you plan to take your company public;

•Get a mentor;This person should not just train you but also introduce you to elite investor circles.There is always someone who knows more than you do

•Learn About IPOs;The key to making fortune through IPO is to predict what the market will want in three to five years,which is how long it may take to bring a company to the public.This requires an in-depth knowledge of national or global market trends,as well as intuition.

•Hone your sales skills;To raise capital for a company you hope to take public someday, you'll have to sell your idea to potential investors.Convincing others that your idea is worth their risk of capital requires self confidence,honesty, and business acumen.you must be skilled in the art of public speaking, know your subject inside and out, and believe in what you are saying.Most important,you must be able to ask for the check at the end of the sales pitch.

•Invest in management;Savvy investors  evaluate management team the most.Make sure in your management team you have someone experienced in going public.

•Understand the industry; when you start a company, particularly one you can trade publicly, you're dealing with a myriad of the unknown.At the very least,you should familiarise yourself with the industry, everything from competitive pricing to the latest government regulation affecting it.

•Keep focus in the core business;Many companies loose sight of their core sight of business during the process of going public, and some end up failing because the principals diverted their attention from running business to the core of going public.

•Look for capital;There are many sources of capital funding.You can issue a private-placement memorandum (PPM) explaining the investment opportunity you're offering and the terms for Participation.A PPM is drawn up by an attorney specialising in securities law and is distributed to targeted investors.You can also approach angel investors or venture capitalists.They not only fund emerging business,but also often  become partners and personal trainers to get the business shipshape for an IPO.

•Be patient;For a predetermined time after a company goes public,major shareholders and officers are legally restricted from selling their shares of stock.So even if your company makes a bundle,it is advisable to be patient with your equity.

   °(source:You can choose to be rich by Robert Kiyosaki and Sharon Letcher CPA)yg