Is it smart to start a public company?

Discussion in 'Economics' started by mynd66, Apr 30, 2010.

  1. mynd66

    mynd66

    I'm in the steel business, we fabricate and erect steel for buildings and bridges in NY and NJ. I'm just your average blue collar worker. Through the years I've amassed the skills, experience and tools to start my own company... Not nearly enough money though.

    If I saved for a while I could dump a ton of money into getting insurance, a shop, and other necessities. Then I can try and get my name out there and score a few jobs in which I'd probably have to bid low to get them since no one knows me. Then I'll break even if I am lucky. Its really a lot of risk to take and I only get one shot, if I fail all my money is gone and I'm toast.

    I know nothing about why and how companies go public. I do know that it all started because someone couldn't afford to do business without additional funding. If I have the know how to successfully run a profitable business then why wouldn't I be able to attract people to have a share in my company to enjoy some of the profits?
     
  2. usually people don't go public till the company is large. you would be a partnership then a limited firm then go public. look for an investor and share profits for capital your talent for their money.
     
  3. Then I can try and get my name out there and score a few jobs in which I'd probably have to bid low to get them since no one knows me.

    That'll work.


    Then I'll break even if I am lucky. Its really a lot of risk to take and I only get one shot, if I fail all my money is gone and I'm toast.

    The point I'd like to make here is, assume you succeed, everything is going along nicely, then you would like to take that leap to expand. To join the big leagues. Guess what? Then it'll be double or nothing.

    It would be nice if you could sub contract to the company you work for or look for the niche. The "don't wants". many business's have the don't want jobs or the don't want customers, but do them anyways, that's your in. You wouldn't have to lowball prices on the don't want jobs.

    Good luck.
     
  4. mynd66

    mynd66

    thanks guys, good advice. I just didn't know how it worked at all and was wondering.
     
  5. if you do set up a company you will have to do articles of association plus memorandum of association.
     
  6. mynd66

    mynd66

    So what about all of the crap pump and dump companies like oil exploration? It seems they start up out of thin air and really don't do anything at all except fake people out into buying into it.

    What if I started the same way. I would have tangible assets, a real skill and real work and business would be going on. Wouldn't people be more opt to invest with me?
     
  7. they wouldn't because you are not that big. plc are large companies not small ones. you would be a sole trader, then partnership, then llc then plc. that is the order, they are all steps of growth to get more capital. at your size you need a partner or a group of partners so llc.

    good luck, it sounds interesting but dependent on if you can get work if you have evidence of that investors will be interested. remeber the investment market is weak so you could do well as a different avenue. perhaps go to someone who has other investments.

    if you are interested in the capital generation for organistations look up pecking order theory that might interest you.
     
  8. show me your business plan and i will have a look at it. include the market and the potential returns and the security. then tell me the capital required and the risks plus what i will get in return in other words what percent of the profits.

    show the growth and the boyency of the market and address the costs and difficulties like bottlenecks, recieving payment, supply costs and suppliers etc. this is especially important because if you build something for someone and they cannot pay or if you buy something and they cannot deliever this may impact on your business. if you state these the relevant businesses issues can be eliminated or calculated.

    if you provide a proper document i will have a look at it. pm me.
     
  9. mynd66

    mynd66

    Thanks Morganist, I'm going to have to educate myself on the things you mention and then write up a business plan. Whether or not this actually happens I plan on moving forward even though I have a feeling that eventually I'll understand why you said that companies usually start out as partnerships.
     
  10. Banjo

    Banjo

    You need to educate yourself. There are levels of investors and guidance for people in your situation. If you live near or in a decent size city there will be angel investor groups. You aren't ready to pitch yet but get in touch with whatever is available in your area and they will provide you with a level of guidance appropriate to your situation. They have various get togethers , breakfasts, etc.that are a great place to start networking and learning.

    http://www.google.com/search?q=ange...s=org.mozilla:en-US:official&client=firefox-a
     
    #10     May 1, 2010