|
Below, you'll find extensive information on leading
franchising oppurtunities articles and products to help you on your way
to success.
Going Public
By Joseph Quinones, Wed Dec 7th
Going public: Now that you have successfully made thetransition, what do you do? Ok, you have successfully accomplished your dream of being theCEO of a public company. The stock of your company has a symboland you are continually going to the computer to check theprice, you tell all your relatives and friends and you eventried to encourage them to buy the stock. You think your job is done, you selected and excellent marketmaker, you released a an announcement to the financial newsmedia, but nothing is happening.
If you are playing basketball and you make a three point shot doyou sit on the court and admire your accomplishment or do you goback and play defense? You do not have to manage the price ofthe stock like so many CEO of newly listed companies try to do,instead you go back to work and use the newly acquired tools togrow your company. As a public company now you can now approach investors and letthem now that you are working hard to grow the company but ifthey should need some liquidity the market will provide it. You can now go out and retain a public relations firm and makesure that the investors know who you are and where to find you.But before you do this make sure that you can afford theinvestors relations company, otherwise you will have to learnhow to promote your company and stay within the legal boundariesas define by the regulators. You will now be able to attract and retain more highly qualifiedpersonnel by offering stock options and bonuses. Because youwill need them. With the privilege of being a public companycomes added responsibility, so you must have highly competentpersonnel to meet the challenge. Now as a public company youhave received a tool to help you grow your company. As a publiccompany you have stock with a known market value, The stock canbe use for acquisitions. Acquisitions must be made in a prudent manner, you have to makesure that the companies have synergy and you are acquiringsomething
of value the will make your company larger and moreprosperous. I won’t mention any names but I know of several franchisingcompanies that have acquired many different franchises some asmany as 600 different franchises. But all they have done isacquired names of different known franchises because the theearnings have not improved nor has the price of the stock. Thesecompanies are trading for pennies with little or no chance forimprovement since they have a ton of stock outstanding. That is one reason that acquisition must be done prudently andselectively, and not just for the sake of getting the name ofyour company in the papers. You must have a business plan and the fortitude to stick by itregardless of the critics, the business plan must be flexibleenough to allow you to make changes when necessary. This planmust be in writing and available to potential investors. If youapproach investors without a business plan you will have adifficult time trying to convince them that you are offering agood investment. A business plan shows investors that you know what you are doingand where you want to take the company. A lack of a businessplan indicate a lack of direction, some entrepreneurs are bigdreamers but their plans tend to swing all over the placecausing them change direction every other week. Begin by designing a strategy for the future, taking intoconsideration what you want to accomplish after you take yourcompany public. If you have a plan your chances of success willbe greatly improved. By being successful from the beginning opportunities willpresent themselves almost immediately and give you a head starton the competition. If you are thinking of going public visit our website:www.genesiscorporateadvisors.com About the author:Joseph D. Quinones, President of Genesis Corporate Advisors hasspent over 25 years in the securities industry. In 1992 hefounded JDQ Financial Group, Inc. and proceeded to build it upfrom a one man operation to the point where it employed manytraders, advised numerous client and generate millions inrevenues.
|
