The stock market is booming. Fact. In nearly every sector, stocks are doing well and have been rapidly rising since 2016, with NASDAQ growing by 28.91%. There has never been a better time to float your business and get involved with the stock market with market confidence at some of the highest levels since before 2008.
Bearing that in mind, there are some serious considerations you need to take before putting your company into the public arena. Always consider important forecasts and operate due diligence. That aside, follow this guide as a starting point and will have a good foundation.
Founding Your Company
When you run a small business, or have a separate capital venture for your business (i.e. you want to keep your personal life and business separate), it is important to establish the legal framework. You want your business to be financially independent of you.
There are a number of initial measures. You’ll need a bank account, especially if you need credit. You need to register with the IRS and local tax regulators. However, after that you have a choice of what company to register, and this can vary from state to state. For argument’s sake, if you were to register a Nevada LLC you would need to ensure you follow very specific naming conventions.
Floating your business can not, and should not, be a one-person venture. You need to have a finance director or similarly qualified person. This is for regulation, to ensure that there’s no foul play; and for your own peace of mind. That’s due diligence at play. They will be able to get everything in order to prepare for a float, including the above mentioned steps.
With your business established and ready to float, you will need to make use of the AIM. This is a smaller market for businesses with ‘low’ market capitalization and is, in many ways, a precursor to entry on to the ‘main’ stock market. This allows small businesses to get trading and get a feel for the market without mixing it with the big beasts.
After three years of good behavior and consistent trading, you can graduate to the main market if your capitalization is sufficient. This is always big news, as it’s not that common. Be sure you’re ready, however. Don’t think the AIM is lesser, somehow, either – according to a November 2017 Bloomberg analysis, AIM is driving market performance. You also make savings on the AIM, such as stamp duty.
Once your business is established, settled, and on the market…well, that’s it. You will want to keep your eye on politics, the local market and general market trends to make sure you’re on top of what could affect your business. Be diligent, work hard to grow your business, and you’ll flourish.
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