Is it possible to sell stock in your company that only has a plan for what it will do with the money?
Reta asks:
say I have a GREAT idea for a business…one that is guaranteed to make millions, if not billions a year. It will cost tens of millions of dollars in start up costs to start this business. Is it possible for me to draw up a plan, and have all my costs and everything outlined…including future customers…and then offer the stock of the company as an IPO to raise the money I would need for my business?
say I have a GREAT idea for a business…one that is guaranteed to make millions, if not billions a year. It will cost tens of millions of dollars in start up costs to start this business. Is it possible for me to draw up a plan, and have all my costs and everything outlined…including future customers…and then offer the stock of the company as an IPO to raise the money I would need for my business?
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It is possible, but finding private funding for your idea is usually the path that folks take. Once you’ve made some profit, then it’s time to take your company public.
Sure its possible. However, most company’s at that stage, seek what is called as Angel Investors. These are typically very wealthy people who invest in speculative type businesses. After that, funding is usually found from VCs (Venture Capitalists). The VCs will help take the company public. You should attend small business group meetings in your area which often both groups of these people (Angels and VCs) will attend. If you want, send you idea to me at zackmax8@yahoo.com and I can give you some other thoughts. Good Luck!
Experienced investors will require you to show that you have set up appropriate barriers to entry of your business idea that has yet to get off the ground. Otherwise, your idea is limited in value, if others can copy your business model, and provide your product or service for less profit.