Another venture is a successful start-up run by a young entrepreneur. A small business that started out as a monopoly has been able to overcome the cost of running a business and make a decent monthly profit.
Now you become a successful entrepreneur, and you see how you can make a lot of money in the industry. So, as usual, you need to invest more money and expand your business to make more profit. But as soon as it became difficult to raise more money for the expansion itself, I started taking stock online.
Calling for shares to expand an existing and lucrative business goes a long way. In addition, this energetic entrepreneur is so smart that he consulted with experts to start a situation that he did not understand, and began to take action in the real sense of the stock.
When it comes to stocks, there are roughly two natures, as in the article I can share on stocks that I once shared. One of the most common is called Common Share. The nature of this stock implies that everyone who owns a group of shares owns a part of the business. As a result, you will have the opportunity to inquire about the financial statements issued at business meetings and to vote on the business’s future direction.How to Start Investing In Share Markets.
However, since the shares are owned by the business, if the business fails, the original share value will be reduced and the return on the shares may not be profitable. The second type, Preferred Share, is like a loan, with only fixed interest rates fixed and the original value will not increase. The first most common type of stock traded on a stock exchange is the Common Share.
A friend of mine from above used to do a systematic sale of common shares. Buyers of this type of stock also own part of the business, as mentioned above, and aim to get advice and friends from shareholders. In addition, once a month, business meetings can be held with shareholders, giving them more ideas.
Shareholders can also view the business’s ongoing operations and profit and loss statements on a monthly basis, giving the business a better view of the business and increasing trust. As a result, the first phase of the business grew and became more profitable.
After a while, the successful entrepreneur wanted to expand his business, so he offered to accept new shareholders.
When this happens, there are many things to consider as a business owner. First of all, it is true that when the business is expanded with shares, the value of the business will be higher and more profitable.
However, as external shareholders’ contributions increase, their ability to make decisions and vote in police operations will decrease. For example, if you sell 100% of your business, the shareholders will own 51% and you will own only 49%. You may still have the largest shareholding at 49%, but you will still be able to vote for 1% of the shares.
You can only get 49 votes and the outside shareholders will win by just 1 vote. Eventually, a wealthy shareholder could buy a majority stake and take control of the business. Apple, for example, was founded by Steve Jobs, but his shareholder BOD fired him as CEO.
Another point is that even if the business is successful, too many start-ups at a young age can be detrimental to the original founder. For example, picking a bowl of curry leaves from an adult mango tree can be a problem for many years, but if you pick a bowl of mango leaves from the moon, the plant may die or grow weak.
Therefore, if your business sells 10% of the shares when the value of the business is 100,000 lakhs, you will get only 100 lakhs. Therefore, it may be convenient to sell a small percentage of the business as a shareholder to further grow a successful small business, but selling a large percentage of the business at a young age can be detrimental to you. More Get Quotes Here…
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