Letting others buy your stock
Posted: 10 August 2009 01:57 AM   [ Ignore ]
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Is there any kin of plus of letting other people own part of you company? Mainly I want to know why whould you give out a percentage of your business profit. As of now I see no benifit to the company to give out dividends and such.

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Posted: 10 August 2009 10:35 PM   [ Ignore ]   [ # 1 ]
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Issuing stock is entirely about getting access to money that you wouldn’t be able to access otherwise.  There is no other reason to do it.  The idea is that they are trading you immediate access to funds in exchange for long term returns/gains.

If you don’t want any extra cash up front you should own 100% of your company to maximize your return.  Given the current availability of cash, I would strongly recommend you do not issue any stock for public sale.  You can easily achieve positive cash flow without borrowing any money (your starting cash is sufficient).

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